Library

Knowing Your Market - The Most Challenging Part of a Business Plan

Summary

For many small farm businesses, writing a business plan doesn’t happen unless a prospective lender requires one. When submitting a business plan for a loan, a prospective lender is not the most important person to be persuaded that confidence is warranted. Remember that the lender is going to rely upon you to repay the loan. So ultimate confidence must rest with you and the homework you do. Get as comfortable as possible with the numbers you reasonably expect (not hope) to achieve. If not, you may be sadly facing far greater discomfort if you cannot repay the loan. Look for weaknesses in your assumptions. Which ones leave you a bit uneasy. Those are the ones that need further attention.