2. Where are you headed? Will you be the first to know when you have “arrived?”

3. What’s your vision of the future of your operation?

4. What you would imagine your business to be under the best of circumstances. It’s a statement that declares what you expect your business to become Vision:

5.  Attractive Future  Represents a Target  Attainable  Realistic  Credible Example: Beef produced on High Noon Ranch will represent the protein of choice by American consumers

6. Are you on a Mission? Every business should be!

7. What is your mission? Mission: Defines an organization and its function. A mission statement gives a farm/ranch an identity by defining its purpose.  Describes what will be done to fulfill the vision  Commitment to action

8. Mission Example: High Noon Ranch chooses to raise and market fed cattle through a vertically coordinated alliance that responds to the demands of the consumer.  Defines the business in which the ranch is engaged  Need to satisfy the consumer

9. Where is your business plan? Plan Outline 1) Company Overview a.) Vision b.) Mission c.) Guiding principles

10. Plan Outline 2) Market Opportunity Analysis A.) Economies 1) International Economy a.) Debt b.) Unemployment c.) Expectations

11. Plan Outline 2) Market Opportunity Analysis A.) Economies (continued) 2) Domestic Economy a.) CPI and consumer confidence b.) Unemployment c.) Expectations

12. 2) Market Opportunity Analysis A.) Economies (continued) 3) Farm Economy a.) Commodity Supply & Demand b.) Prices c.) Agribusiness profitability d.) Local, state, national, world competition e.) Financial health f.) Land prices

13. 2) Market Opportunity Analysis B.) Market Analysis 1 - Size and number of farms 2- Industry life cycle a.) Introduction b.) Growth c.) Maturity d.) Decline 3- Competition 4- Customers 5- SWOT

14. 2) Market Opportunity Analysis C.) Marketing Goals/Objectives 1 - Goals, objectives, strategies, tactics 2- Commodity mix 3- Promotion

15. 2) Market Opportunity Analysis D.) Implementation Controls, Measuring and Monitoring 1- Organizational Structure 2- Operations 3- Risk Management 4- Records and Controls

16. 2) Market Opportunity Analysis E.) Financial Forecasts (5 years) 1- Assumptions 2- Net Farm Income 3- Cash flow 4- Proforma balance sheet 5- Net Present Value 6- Graphs & charts

17. Executive Summary “Contains the important information from each outline category”

18. Farm Plan Done correctly, it will take time (“no pain, no gain”) Reality check and road map to future Guidance system through difficult times Nearly eliminates the probability of misunderstanding business’s future Minimizes conflict Incorporate values and morals

19. Goals Is an end toward which one directs some specific effort Why goals?

20. Why Set Goals? Serve as a benchmark to measure success and levels of performance Establish a sense of direction that is necessary for growth and success Written goals can be reviewed by others to ensure each element of the goal is included

21. People who set goals Suffer less stress & anxiety Concentrate better Show more confidence Perform better Happier with their performance Improved teamwork

22. SMART Goals S pecific M easurable A ction-oriented R ealistic T ime and resource constrained

23. Example: SMART Goal Learn about price risk management strategies and use one price risk tool by 12/31/00, while spending up to $1,000.00 for the training.

24. Success Individual  Decisions  Vision, Mission, Goals

25. Vision ______________________________ ______________________________ ______________________________

26. Mission _______________________________ _______________________________ _______________________________ _______________________________ _______________________________ _______________________________

27. SMART Goals ______________________________ ______________________________ ______________________________ ______________________________ _____________________________

28. Build A Team Establish Goals Define expectations of personnel Allow for mistakes, create a plan to minimize them Evaluate company, team, and personal goals Always be positive! Do “teaming” activities Hire “coachable” employees

29. Build a Team (continued) Allow time for training and personal development Recognize “personnel for performance” (ex: trips, supper, etc…) Allow a system of feedback (start, stop, continue) Commitment and trust are essential Have FUN!

30. Farm Analysis Big is not always better Net income is important Change in net worth is the key

31. Source: KFBM, 1993.