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Download Tennessee Master Meat Goat Producer. Business and Financial Planning and Management for Meat Goat Operations John Campbell Rob Holland Aaron Robinson

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  • Slide 1
  • Tennessee Master Meat Goat Producer
  • Slide 2
  • Business and Financial Planning and Management for Meat Goat Operations John Campbell Rob Holland Aaron Robinson
  • Slide 3
  • Teaching Objectives Producers will learn basic principles of business planning Producers will learn the importance of farm records and how to use them for making management decisions Producers will learn types of business risk and how planning and management can reduce such risk
  • Slide 4
  • Teaching Objectives Producers will learn the value of developing farm financial plans and utilizing enterprise budgets in decision-making. Producers will learn how herd performance measures are calculated and how these measures can be used as a basis for making improvements in both production and financial management
  • Slide 5
  • Business and Management Planning Successful business requires solid business planning and management Most successful businesses have some type of business management plan Goat producers should make overall business planning a routine part of the management of their enterprise
  • Slide 6
  • Mission, Goals & Tactics The mission should clearly state why you have the enterprise and how raising meat goats fits with your personal and professional priorities Goals for meat goat enterprises should be concise statements that describe certain performance measures which, once achieved, will help meet the overall mission of the enterprises Tactics are the production and management activities that must be performed to run the enterprise and meet the goals
  • Slide 7
  • Mission Refer to Chapter 2, Page 2 in manual ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________ ________________________________
  • Slide 8
  • Mission, Goals & Tactics The mission should clearly state why you have the enterprise and how raising meat goats fits with your personal and professional priorities Goals for meat goat enterprises should be concise statements that describe certain performance measures which, once achieved, will help meet the overall mission of the enterprises Tactics are the production and management activities that must be performed to run the enterprise and meet the goals
  • Slide 9
  • S. M. A. R. T. Goals Specific - - goals should be well-written, concise, straightforward and definitive Measurable - - goals should be measured in quantitative terms so progress can be monitored Attainable - - goals must be achievable and not in conflict with other goals Rewarding - - the achievement of a goal should be rewarding in some way Timed - - goals should have a time limit for achievement
  • Slide 10
  • Goals Refer to Chapter 2, Page 3 in manual Increase kid crop percentage by 20% in 2 years ________________________________ ________________________________ ________________________________ ________________________________ ________________________________
  • Slide 11
  • Mission, Goals & Tactics The mission should clearly state why you have the enterprise and how raising meat goats fits with your personal and professional priorities Goals for meat goat enterprises should be concise statements that describe certain performance measures which, once achieved, will help meet the overall mission of the enterprises Tactics are the production and management activities that must be performed to run the enterprise and meet the goals
  • Slide 12
  • Tactics Refer to Chapter 2, Page 3 in manual Analyze forage and grain for nutrient levels ________________________________ ________________________________ ________________________________ ________________________________
  • Slide 13
  • Business Plan Proper identification and written descriptions of a mission, goals and tactics for a meat goat enterprise will provide a strong foundation for the development of a complete business plan A business plan provides a structure that guides the business planning and on-going business management process
  • Slide 14
  • Business Plan A written business plan is a tool that describes and defines the many details of a meat goat enterprise Development of a business plan should be a basic management practice for goat producers A business plan does not have to be long nor expensive, but it does require an investment of time and attention
  • Slide 15
  • Business Plan Format Overall description of the business Management overview Description of the products planned to market Market analysis and development of marketing strategies Financial plan Tax returns, legal documents, contracts and agreements
  • Slide 16
  • Obtaining Financing Insufficient planning and lack of capital are the most frequently cited reasons that businesses fail Whether you are starting or expanding a goat enterprise, sufficient capital is essential But knowledge and planning are required to manage capital well Significant start-up costs can make the early days (and years) of a new enterprise stressful
  • Slide 17
  • Funding the Enterprise Comes from either one or a combination of two primary sources Equity Debt
  • Slide 18
  • Equity The owners contribution to the start up of the enterprise Money that stays in the business and does not have a definite repayment schedule Critical component of an enterprise that is in need of additional funds
  • Slide 19
  • Debt Debt funding (or a loan) is critical for enterprises that do not have sufficient equity to finance the business needs Loans are generally set-up with a fixed payment schedule Lenders may require that equity represent 25 to 50 percent of the total start-up costs for a new business
  • Slide 20
  • Loans Generally obtained from commercial banks, government agencies or some other third party that sets a specific repayment schedule Secured or non-secured Non-secured loans are based entirely on the borrowers financial strength and past performance Secured loans require that assets be used as collateral to secure the loan
  • Slide 21
  • Where do you get the money?
  • Slide 22
  • Sources of Start-Up Capital for Starting a New Business Venture Personal Resources60% Commercial Lending23% Friends & Relatives 9% Other Sources 4% Outside Investors 3% Government Agencies 1%
  • Slide 23
  • Five Cs of Credit Character Capacity Collateral Conditions Capital See manual for additional details.
  • Slide 24
  • Keeping records and preparing budgets is about as exciting as watching paint dry. Rosemary Harter, Illinois farm wife who helped save the farm by improving records and developing marketing plans.
  • Slide 25
  • Farm Financial Record- Keeping Effective management of a farming operation today requires that records be kept so managers can make informed decisions affecting the profitability of their farms Farm business decisions that are not based on accurate farm records may lead to less profit
  • Slide 26
  • Why keep records? Proof Decision-aids Institutional requirements Environmental regulations
  • Slide 27
  • Record Tips Selecting a record-keeping system should depend on the expected use of the records; no "best" system Record systems should emphasize decision making, not tax preparation Regularly and accurately post transactions Make all financial transactions through checking account; reconcile checkbook with records
  • Slide 28
  • Whole Farm Record System
  • Slide 29
  • Enterprise Record System Contain all the income and expenses associated with a single enterprise.
  • Slide 30
  • Enterprise Record System An enterprise can be any crop or type of livestock produced on the farm.
  • Slide 31
  • Enterprise Record System Should contain all cash income and direct cash expenses for that particular enterprise.
  • Slide 32
  • Enterprise Record System In-direct enterprise expenses are more difficult to assign.
  • Slide 33
  • Types of Expenses Direct Goat feed Goat medicine Auction fees Trucking Seed Fertilizer Lime In-direct Fuel Repairs Labor Insurance Utilities Rent
  • Slide 34
  • Uses of Enterprise Records Compare the profitability of different enterprises Developing enterprise budgets or
  • Slide 35
  • Sales Records Estimating income from sales is an important aspect of overall management Income estimates are almost always more accurate when there is historical information on which to base projections The dollar amount of sales may not tell a farm manager much about what was really sold
  • Slide 36
  • Information in Sales Records Date Description of animal/animals sold Number sold Weight (if sold by pound) Price Sale expenses Market name/buyer
  • Slide 37
  • Whole Herd Sales Record
  • Slide 38
  • Kid Sales Record
  • Slide 39
  • Cull Breeding Stock Sales Record
  • Slide 40
  • Breeding Stock Sales Record
  • Slide 41
  • Assessing Risk Agricultural en

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