March 1, 2024
Business planning is vital for agritourism ventures, just as it is for any enterprise. In this blog, we'll explore why having a solid plan is crucial, discuss key considerations when crafting one for your agritourism business, and introduce an easy-to-use online tool to guide you through the process.
What is business planning and why is it important?
Business planning is the process of outlining the goals, strategies, and actions needed to achieve success in a business venture. It involves setting objectives, assessing resources and potential challenges, and developing a roadmap for how your business will operate and grow over time.
The purpose of business planning is to provide clarity, direction, and a framework for decision-making to guide your business toward its objectives. However, it’s not only about the finished product. Engaging in the process of business planning allows you to thoroughly evaluate your ideas, commit them to paper, and see them come together in a cohesive strategy. This process serves as a crucial form of risk management, providing you the opportunity to test the viability of your concepts and make necessary adjustments.
If you have ever sought out any sort of funding to support your business, whether through grants or loan programs, you have probably been asked to provide a business plan. Lenders and grantors want to know that you have dedicated time to strategizing your long-term goals and can demonstrate proof of concept. Even if you already possess a business plan for your farm, it’s important to revisit this process for any new ventures you want to include, such as agritourism.
What should I include in my business plan?
Business plans typically include an executive summary, a business description, a market analysis, an overview of the organization and its management, a marketing plan, and a financial plan incorporating sales projections and potential sources of external funding. Following these steps aids in developing a robust business structure and contemplating current and future opportunities that may otherwise be overlooked.
When planning for agritourism specifically, be sure conduct thorough research into local land use and zoning laws, land acquisition strategies (if relevant), the proximity of your farm (or desired area) to population centers, and strategies for attracting visitors. Evaluate the successes of other farms and agritourism operations in your area, discerning their unique qualities and identifying potential gaps and niches you could fill. How can you offer a truly unique experience?
And don’t overlook important lifestyle considerations, such as your personal priorities and the time commitment required to achieve your goals. For instance, if privacy and peace and quiet are top values for you, hosting large farm dinners weekly may not align with your vision.
Where can I get help with my business plan?
If you’d like guidance and accountability in drafting your agritourism business plan, you're in luck! A newly launched online tool is here to assist you. AgPlan, an online program managed by the Center for Farm Financial Management at the University of Minnesota, provides business planning templates tailored to various agricultural enterprises. Thanks to a grant from Northeast Extension Risk Management Education and the collaborative effort of extension and agricultural service providers nationwide, led by the University of Vermont, there's now a free agritourism version available for your use!
The AgPlan agritourism template guides you through each step of the business planning process, offering agritourism-specific examples and concise video courses on writing each section. It simplifies the process of developing your business plan, helping you understand what to include with tips and resources and showcasing sample plans for inspiration. Upon signing up, you can create multiple business plans, store all your content for easy access, invite others to contribute and provide feedback, and export the document for presentation to lenders or partners.
Start utilizing the AgPlan template today by signing up at https://agplan.umn.edu/!
For additional support and accountability, consider joining a 7-week virtual training session where agritourism experts guide you through AgPlan section by section. While three sessions have already occurred, it's not too late to participate! Each session is recorded, allowing you to follow along at your own pace or catch up and join the next session. If you’re reading this in the future (hello!) and the 7-week training series has ended, you can still watch each of the recorded sessions and guide yourself through the process. If you complete each of the weekly assignments, you'll have a comprehensive draft of your agritourism business plan by the end of the training!
- Agritourism Business Planning with AgPlan will be taught via Zoom and runs from 1:00 to 2:00 PM every Tuesday from February 13 through March 26, 2024. Register here: Agritourism Business Planning - Zoom
- Or, watch the recorded sessions, here: Agritourism Business Planning - Recorded Sessions
Additionally, Vermont farms can access one-on-one business planning support through the Farm Viability Program at UVM Extension and Vermont Farm & Forest Viability Program through Vermont Housing & Conservation Board.
Business planning for agritourism is just as crucial as it is for any other business endeavor. It offers clarity, direction, and serves as a vital risk management tool, especially crucial when seeking funding or embarking on new ventures like agritourism. Happy planning!
Thanks for reading the Marketing and Agritourism Blog! I’m your host, Kristen Brassard, Marketing & Agritourism Specialist at the Vermont Agency of Agriculture, Food & Markets. Stay tuned every month for tips on marketing and incorporating agritourism practices on your farm and be sure to sign up for the Vermont Ag Bulletin so you never miss a post!