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Unit 3: Managing the Farm/Ranch Business for Long-Term Success

Earnie and Martha Bohner launched a series of value-added products after conducting careful market and cost research. (Martha Bohner)

MANAGING FOR START-UP

The management skills covered so far related to human resources, finance and risk, apply to all stages of the business life cycle and are critical for long-term sustainability. In addition, there are a few management topics that are unique to specific stages of the business life cycle. In the following sections we will address those stage-specific topics by looking at some of the questions and challenges farmers and ranchers face during: Start-up, Business Growth and Expansion, and Business Consolidation and Retirement. We will look first at the Start-up phase.

Starting a new business can be overwhelming – especially to someone who has never farmed, marketed their own products, or managed a business. As you work through the business planning process with first-time owners, you will address many of the most fundamental start-up questions and challenges. Special attention, however, should be given to financing (as already discussed) and how the business is organized and structured.