Farm groups often have good ideas for a business but run into problems between hatching the idea and producing and marketing the final product.
Here are tips from people who have gone through the process:
1. Optimism is good to build support, but the business plan must be built on realism and the flexibility to accommodate unexpected problems.
2. Forget the adage “if you build it, they will come.” Market research is needed to develop a plan to sell the product in markets often dominated by big, long-established competitors.
3. Don’t undercapitalize. Have the money needed to handle construction cost overruns and two or three years of unprofitable start-up operations.
4. The board of directors must be knowledgeable about business but know its limitations. It must be prepared to bring on board managers and consultants with the right skills.
