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Unit 1: Planning and Business Development

Another useful planning tool to help is the SWOT analysis:

S = internal business strengths

W = internal business weaknesses

O = external business opportunities

T = external business threats

When conducting a SWOT analysis, encourage farm business owners to think about the financial, social and ecological aspects of their current operation. For example, what kind of conversation could you have with a farmer or rancher who called your office saying, “We need to make some changes because of all the nearby urban development. We can no longer afford to expand our operation due to the rising cost of land.” This is one of the SWOT factors identified by Dave and Florence Minar during their business planning discussions. Would you characterize this external change as an opportunity or threat? The Minars identified this change in the landscape as an opportunity: New housing developments next to their farm could be a potential customer base for home-delivered milk. Remember that some weaknesses or threats can be turned into strengths and opportunities. Learn more about the Minars' SWOT analysis at Building a Sustainable Business - Planning Task 2: Farm History and Current Situation.