Wednesday, December 11, 2013

Ranch Buying: Components of a Good Business Plan

Any successful ranch owner will tell you that a sound business plan is one of the most important considerations in finding the perfect ranch to buy. Purchasing a ranch requires a huge investment, so having a well-developed business plan that clearly identifies your goals is a must. This, then begs the question: What consists a good business plan for ranch purchasers?

A good business plan must contain, among other things, the mission and vision for the business venture, production capabilities, production goals, estimated operational expenses, necessary ranch amenities, and projected income and profits. The plan must also include a list of necessary equipment, structures, facilities, and personnel. Once a plan has been finalized, it must then be compared with evaluations of ranches for sale to determine which acreage can meet expectations.

If expectations are not met, the results of the comparison can be used to identify the properties that come close. The buyer may then proceed to estimate the cost of the renovations and improvements needed to achieve production goals, which in turn will help him establish the true value of each available property.

A buyer should never finalize a ranch property purchase until he has completed a thorough evaluation of its production potential. A good business plan enables him to do so.


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