feedlot business plan

Starting Cattle Fattening Business Plan (PDF)

Cattle fattening is a very profitable business, and many people are making money all over the world by starting cattle feedlot business. Cattle pen fattening involves the feeding of beef cattle with a protein balanced, high-energy diet for a period of 90 days under confinement to increase live weights and improve degree of finish and thus obtain better grades at the abattoir. Beef cattle fattening enables the cattle to express fully their genetic potential for growth. Cattle fattening is not only a lucrative business but also plays a vital role in meeting the ever-growing global demand for high-quality beef. As populations continue to rise, particularly in urban areas, the demand for beef as a primary source of protein remains strong. This presents a golden opportunity for aspiring cattle farmers to step into the industry and contribute to the supply of premium-quality beef products.

To build a successful, sustainable cattle fattening livestock business, you require sufficient knowledge of how to efficiently do cattle pen fattening i.e cattle fattening techniques, good management skills, and a good cattle feedlot business plan. This article will outline how to start cattle fattening business, and the cattle pen fattening business plan-PDF, Word, Excel.

Note that this article and business plan is about cattle fattening.  We also have articles and business plans for

Beef Cattle Farming/Ranching/Breeding Business  

Dairy Farming Business

Click the links above to go to the articles and business plans. 

Market Research

Market research is a pivotal step in the journey of starting a cattle fattening business. As an integral part of market research, selecting the appropriate cattle breed is a critical decision that hinges on various factors. Researching the suitability of different breeds is imperative, taking into account factors such as the availability of specific breeds in your region, their feed conversion efficiency, the cost to acquire them, and alignment with market demands. Each breed comes with its unique characteristics, and the choice must be made strategically to optimize profitability and meet consumer preferences. Assessing your supply chain is critical. Consider the availability and cost of inputs such as cattle feed, veterinary services, and transportation. A reliable supply chain is fundamental to the success of your cattle fattening operation, ensuring a consistent and cost-effective production process.

Comprehending the pricing dynamics of various beef grades within your target market is pivotal. This entails delving into the pricing structures of different grades of beef, discerning the preferences of potential customers, and recognizing the seasonality of cattle and beef prices. By gaining insights into these aspects, you can fine-tune your pricing strategy to align with market expectations, cater to specific consumer preferences, and navigate the fluctuations in cattle and beef prices effectively. Market research should also encompass economic feasibility. Calculate your initial investment requirements and estimate operating expenses. Develop financial projections to determine the profitability of your venture. This financial insight will not only aid in securing funding but also guide decisions regarding the scale and scope of your cattle fattening business.

Cattle Fattening Business Model

The cattle fattening business model is a structured approach that revolves around the purchase, management, and strategic feeding of cattle to enhance their weight and beef quality over a 90-day period. This meticulous process serves as the cornerstone for generating profits in this business. As the cattle undergo this feeding regimen, they experience a substantial increase in both weight and grade, resulting in higher-value beef. The crux of profitability lies in the fact that the revenue derived from selling these well-fattened cattle significantly surpasses the initial costs of purchasing the livestock, along with the expenses incurred for feeding and operational needs. This substantial revenue surplus serves as the primary source of profit, and by repeating this cycle consistently throughout the year, cattle farmers can ensure a steady and reliable stream of income.

By adhering to this cattle fattening model, farmers can harness the economic potential of efficiently converting cattle into high-quality beef. The 90-day timeframe allows for a well-defined production cycle, which aids in managing costs, optimizing resources, and ensuring a consistent supply of market-ready cattle. This business model not only offers a lucrative opportunity for farmers but also contributes to meeting the ever-growing demand for premium beef products, making it a compelling and sustainable venture within the agricultural sector.

Land For Cattle Fattening

The decision of where to locate your cattle feedlots is very important so as to ensure economic viability of the cattle fattening business. Important factors to consider when choosing land for your cattle feedlot business include : availability of cheap labour, proximity to market & to sources of feed, prevailing climatic conditions as well as good road networks. Other factors to consider include : the land should be suitable for construction of cattle feedlots, availability of water supply, low risk of flooding or veld fire and it should be a distance away from residential or industrials areas to avoid causing noise and dust pollution to those areas. The recommended land for cattle feedlots should have a slope of 2-5%, and the soil with 25% or more clay is better as compared to sand. There should be a reliable source of clean water that can be used for both human and cattle consumption. Possible water sources for the cattle feedlot farm include boreholes, rivers and dams. In case of inadequate water source, water tanks can be installed.

Cattle Feedlot Housing

The cattle feedlot business model requires keeping and raising the cattle in confined areas. Feed and water is brought to the cattle rather than the cattle grazing or seeking pasture. Feedlots are actually concentrated cattle feeding operations. The cattle feedlot pens are confined yard areas where the cattle are completely hand or mechanically fed for the purpose of beef fattening. The reason why the cattle are fed under confinement is to prevent loss of energy through movement. Cattle feedlot housing should have the following features : protect the cattle against adverse weather conditions, offer easy access to water & feed, allow efficient collection of cattle manure, offer freedom of cattle movement and provide natural ventilation and lighting. The feedlot pens can be constructed using timber frames. Cattle feedlots housing are usually open sided.  The cattle fattening pens should allocate 5-10 square meters per each cattle. The floors of the cattle fattening pens should be smooth and not slippery. Roofing is usually not necessary except to cover feeding equipment so as to prevent the feed from getting wet when its raining. The costs of constructing the cattle pens should be included in the cattle pen fattening business plan.

Equipment for Cattle Fattening Business

Essential equipment for cattle pen fattening operations include feeding equipment and drinking equipment. Feeding equipment may be fixed inbuilt within the cattle pen structure. They can also be in the form of self-feeders which can be moved around within the pens. Self-feeders are usually more suitable for small cattle fattening operations.  Large commercial feedlot operations use feed bunks/feed troughs which are fixed and inbuilt close to the edge of the cattle pens. The feed troughs usually run the entire length of the cattle pen to provide easy access to food. Similarly, cattle drinking equipment may also be in the form of movable drinkers, or it can be in the form of fixed inbuilt water troughs at the edge of cattle pens. Whichever type of equipment that you use, you should ensure that the equipment provides easy access of water and feed to the cattle. The cattle feedlot business plan should include the costs of the required equipment.

Selecting Cattle for Fattening

You need the cattle to feed in order to start cattle beef fattening business. There are two options, either you use cattle from your own herd, or you purchase the cattle from other farmers. You have to be careful when buying cattle to use for cattle pen fattening. If you choose cattle which are not suitable for feedlot fattening, you will be in a financial loss before you even start the cattle feedlot operation. Important factors to consider when choosing cattle for fattening include : breed of cattle, age, gender and maturity type. Some breeds of cattle are more suitable for cattle pen fattening as compared to others – this is because those cattle breeds gain more weight faster with less feed. Some of the popular cattle breeds used for cattle feedlot fattening include the Brahman, Angus, Limousin and Hereford among others. Native cattle breeds can also be used successfully for cattle feedlot fattening. Money to buy cattle must be available at all times. A lack of funds to buy the cattle for beef fattening when prices are favorable is a lost opportunity to make a profit. Your cattle feedlot business plan should cater for money for buying the cattle.

Feed And Nutrition

It’s very essential that you give the right quantity and type of feed to your cattle. The success of your cattle fattening business depends on the ability of the cattle to gain weight and to produce high quality beef. These factors are affected by the quality and quantity of feed. The proper feeding techniques will ensure that the cattle will grow and utilize the feed efficiently and produce good quality beef.  This will maximize your profits of the cattle fattening farming business. Failing to properly feed the cattle will lead to losses. The losses will be due to failure to meet the target slaughter weights and beef quality grade.

There are companies which sell cattle fattening stock feeds. These are complete, balanced feeds, which are designed for fattening cattle in feedlots over 90 days. The stock feeds are high energy fattening meals which contain all the nutrients necessary for ad lib cattle pen fattening. You can also make your own home made cattle beef fattening feeds. The amount of feed consumed by the cattle daily will depend on factors such as live weight and age of the cattle. Normally, it averages between 8-15kg per head per day or 3.4% of a steer’s live mass per day. The average daily weight gain at 350Kg live mass is about 1.6Kg.

When you sell your cattle to the abattoir or butcher, they will slaughter it and grade the beef according to its quality. Beef is graded in two ways: quality grades for tenderness, juiciness and flavor; and yield grades for the amount of usable lean meat on the carcass. After fattening cattle in feedlots for 90 days, its beef should fetch the highest quality grade. This grade is usually called Prime beef or Super beef. This is the beef which fetches the highest price on the market. The purpose of cattle fattening is to increase the weight of the cattle over 90 days (more weight, more money when you sell) and to increase the quality of the beef (higher grade of beef, more money when you sell).

Health & Disease Management

Health and disease management is a paramount aspect of running a successful cattle fattening business. Ensuring the well-being of your cattle not only promotes their growth and overall performance but also safeguards your investment. Regular health checks and preventive measures are essential to mitigate the risks associated with diseases that can adversely affect your herd. This includes vaccinations, deworming, and providing proper nutrition to boost their immune systems. Additionally, maintaining a clean and well-ventilated environment in the feedlots is crucial to minimize stress and the spread of diseases among the cattle.

In the event of illness outbreaks, prompt diagnosis and treatment are imperative. Collaborating with a veterinarian who specializes in cattle health is advisable, as they can provide guidance on disease prevention and management strategies. Moreover, implementing a robust biosecurity protocol can help prevent the introduction of diseases to your herd, further ensuring the health and productivity of your cattle. A proactive approach to health and disease management not only safeguards your cattle but also contributes to the reputation and long-term success of your cattle fattening business within the industry.

Management and Labour

You need farm workers who will be responsible for taking care of the cattle. Their duties include : feeding the cattle, monitoring the health of the cattle, cleaning the cattle feedlot pens, carrying out maintenance work at the cattle farm, providing medical care to the cattle where necessary, maintaining accurate cattle records and other cattle farm duties. The number of required farm makers will depend on the size of the feedlot. For large cattle feedlots, full time sales, marketing, accounting and security staff may be required.  There is need for good technical knowledge of cattle fattening techniques for success in the feedlot business, and good management skills. You need to understand the techniques of effectively raising cattle for beef. Some farmers don’t take farming as a business, thus they will never be successful, as they don’t properly manage it.

Capital for Cattle Feedlot Business

You obviously require money in order to start the cattle feedlot business. The capital that you need to start the cattle fattening business will depend on the size of your feedlot operation. Obviously a 500 head cattle feedlot operation will  require significant capital as compared to a 20 head cattle fattening business. The major expenses when starting a cattle fattening business are feedlot construction costs, costs of purchasing the cattle to fatten as well as stock feed costs. There are various source of funds to use for starting this business, they include loans from banks, money from your savings, government grants and well as investment from equity investors.  If you plan to raise capital from investors or to apply for a loan from the banks, then you need a good cattle fattening project proposal. Don’t have access to capital? Start small, and grow your cattle fattening business overtime! The feedlot business is very profitable, so if you reinvest the profits you get, you can quickly grow your business. You will require a good cattle fattening business plan to guide you in your feedlot business.

The market for beef is very huge and is ever increasing. The annual global demand of beef is 75 million tonnes. That’s a lot! You can supply your cattle/beef to individual households, butchers, auctions, farmers, schools, restaurants, companies, supermarkets, organizations, events, abattoirs etc. You can sell your cattle as live cattle or you can slaughter and sell the beef.

The export market for beef is also very huge! As you grow your business you will be able to export the beef to other countries.  The largest importers of beef are Russia, United States of America, Japan, China, South Korea, European Union, Hong Kong, Egypt, Canada, Chile and Malaysia. Currently, the top producers of beef are United States of America, Brazil, European Union, China, India, Argentina, Australia, Mexico, Pakistan, Turkey and Russia.

Profitability of Cattle Fattening Business

Cattle beef fattening is very profitable when done the right way. The profitability of the cattle fattening farming business depends on the buying price of the cattle, cost of the feed, price margin, feed margin, feed conversion efficiency ratio, unit cost per KG when selling.  It is important that you understand the mentioned margins and conversion ratios before you start this livestock business.

When you understand these margins and ratios, then you can easily calculate how much profit you will get buy buying and fattening the cattle at a specific price. Thus you will make an informed decision of whether the price at which you are buying the cattle for is profitable for beef fattening purposes.  The maximum price payable for the cattle must be calculated before you start the beef fattening business. It is easy to make a financial loss before fattening even starts by paying too much for the cattle. All those factors are clearly explained in our cattle fattening farming business plan.

Advantages of Cattle Fattening Business

The cattle fattening business offers a host of compelling advantages that make it an attractive venture within the agricultural sector. Foremost among these benefits is the potential for lucrative returns. By efficiently converting purchased cattle into higher-value beef over a relatively short period, farmers can realize substantial profits. The revenue generated from selling well-fattened cattle surpasses the initial purchase and operational costs, making it a financially rewarding endeavor. This profitability is particularly appealing for those seeking a sustainable and profitable agricultural business.

Moreover, cattle fattening follows a predictable production cycle, typically lasting around 90 days. This predictability allows farmers to plan and manage resources effectively, from feed procurement to marketing strategies. The cyclic nature of the business ensures a consistent stream of income throughout the year, providing financial stability and reducing the uncertainties often associated with agriculture.

Additionally, the global demand for high-quality beef remains strong, making the cattle fattening business strategically advantageous. As populations grow and consumer preferences evolve, the need for premium beef products continues to rise. Farmers can tap into this demand by producing well-fattened cattle that meet market requirements and command competitive prices. This not only contributes to financial success but also positions the cattle fattening business as a key player in ensuring food security by supplying a consistent and readily available source of high-quality protein, making a positive impact on local and regional food systems.

Why You Need A Cattle Fattening Business Plan

A well-structured and comprehensive business plan is an indispensable tool for anyone looking to venture into the cattle fattening business. It serves as a roadmap that outlines your business objectives, strategies, and the necessary steps to achieve your goals. This clarity of purpose helps you stay focused and ensures that every decision you make aligns with your long-term vision for the business.

Moreover, a business plan includes detailed financial projections, including startup costs, operating expenses, revenue forecasts, and potential sources of funding. One of the primary roles of a business plan is to help entrepreneurs calculate the potential return on their investment. It outlines the expected revenue generated from the sale of fattened cattle and compares it to the total costs involved in purchasing, feeding, and managing the cattle. This comprehensive financial analysis allows prospective cattle farmers to gauge whether the business is likely to be profitable and, if so, the magnitude of the expected profit. This financial information is crucial for understanding the financial feasibility of your business and securing investment if needed.

Additionally, a well-constructed business plan helps you identify potential risks and challenges that may arise during the course of your cattle fattening operations. By recognizing these risks upfront, you can develop strategies to mitigate them, enhancing the resilience and sustainability of your business. Your business plan also serves as a guide for day-to-day operations, outlining the procedures and processes necessary for the successful management of your cattle, including feeding, healthcare, and record-keeping. It ensures consistency and efficiency in your operations, laying the foundation for long-term success.

Whether you plan to seek financing from investors or lenders or are simply looking to manage your cattle fattening business effectively, a well-prepared business plan demonstrates your commitment and professionalism. It instills confidence in potential stakeholders by showcasing your understanding of the industry and your ability to navigate and thrive in the cattle fattening business.

Pre-Written Cattle Fattening Farming Business Plan – PDF, Word And Excel: Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the cattle fattening farming business, we encourage you to purchase our well-researched and comprehensive cattle fattening  business plan. We introduced the cattle fattening business plan after discovering that many were venturing into the cattle fattening farming business without enough knowledge and understanding of how to run the business, how to keep the cattle, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global business plan will make it easier for you to launch and run your cattle fattening business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the cattle beef fattening business.

Uses of the Cattle Fattening Business Plan – PDF, Word And Excel

The Cattle fattening business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your cattle fattening farming business
• As a cattle fattening project proposal
• Assessing profitability of the cattle fattening business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Cattle Fattening Business Plan – PDF, Word And Excel

The business plan include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• SWOT & PEST Analysis
• Industry Analysis
• Market Analysis
• Operational Requirements (Including technical aspects of how to raise beef cattle, feed requirements etc)
• Operational Strategy
• Why some people in cattle fattening business fail, so that you can avoid their mistakes
• Ways to raise capital to start your cattle fattening business

The Pre-written Cattle Fattening Business Plan package consist of 4 files

• Cattle Fattening Business Plan – PDF file (Comprehensive Version – 77 Pages)
• Cattle Fattening Business Plan – Editable Word File (Comprehensive Version – 77 Pages)
• Cattle Fattening Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 45 pages)
• Cattle Fattening Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the number of cattle, selling price of  the beef etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Cattle fattening Business Plan (PDF)

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Get the Cattle Fattening Business Plan - PDF, Word And Excel

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

Cattle Fattening Business Frequently Asked Questions

What is needed for cattle fattening.

Three most important things required for cattle fattening business are cattle, feed and market. You start with beef cattle that you feed under confinement over a period of 90 days after which you sell them to the market. A good cattle fattening business plan is also required before venturing into this business.

What cattle business is most profitable?

Cattle fattening business is more profitable than other types of cattle businesses like cattle ranching, cattle breeding and dairy cattle farming. Cattle fattening also brings returns quicker as it is done over a period of 90 days.

How long does it take to fatten a cow?

When doing intensive cattle fattening, it takes up to 90 days to fatten a cow. However it may take upto a year to fatten a cow when you are doing cattle ranching whereby the cattle will be grazing.

What breed of cattle gain weight the fastest?

Pure breeds of beef cattle are the ones which gain weight the fastest. Some examples of good breeds for cattle fattening include Brahman, Angus, Shorthorns, Limousin, Beefmaster and Hereford among others. Native cattle breeds can also be used successfully for cattle feedlot fattening.

How much space do feedlot cattle need?

Feedlot cattle need 5-10 square metres per head. This space ensures that the cattle have freedom of movement and enables easy access to feed and water. Feedlot cattle should not be crowded in a small space as that is not good for their health and growth.

Are feedlots profitable?

Cattle fattening feedlot is a very profitable business with a quick return to investment. You will start getting profits from the cattle fattening business after only 90 days. However to be profitable in the feedlot business, you should choose the right type of cattle, adequately feed the cattle with affordable feed, and have a ready market which offers good prices. It’s also important that you get a good feedlot business plan so that you understand factors which affect the profitability of the cattle fattening business.

What are the advantages of cattle fattening business?

One of the major advantages of cattle fattening business is that you get money quickly – after only 3 months, unlike for cattle breeding where you have to wait for 1 year to start making money. Cattle fattening also require less space as the cattle won’t be grazing, they will be housed all the time.

What is the business model of cattle fattening?

The business model of cattle fattening involves purchasing cattle and feeding them over a period of 90 days, thereby increasing the beef grade of the cattle and weight of the cattle thus producing profits at the time of the sale. This is a very straight forward business model which just requires adequate knowledge of cattle fattening techniques.

Where do feedlots get their feed?

Feedlots can either use commercial stock feeds purchased from stock feed suppliers or farm-made feeds which they make on their own. For large scale feedlot operations, farm made feed is usually cheaper, but it requires adequate feed making knowledge so as to ensure that the cattle get all the required nutrients.

How much do feedlot cattle gain per day?

The weight gained by feedlot cattle depends on the amount of feed given and the feed-conversion ratio. The feedlot cattle daily weight gain is usually between 1.2Kg – 1.8Kg.

We wish you the best in your Cattle fattening farming business! Check out our collection of business plans  , and more business ideas .

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Cattle Farm Business Plan Template

Written by Dave Lavinsky

Cattle Farm Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their cattle farms. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a cattle farm business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cattle Farm Business Plan?

A business plan provides a snapshot of your cattle farm as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cattle Farm

If you’re looking to start a cattle farm or grow your existing cattle farm company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cattle farm to improve your chances of success. Your cattle farm business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cattle Farms

With regards to funding, the main sources of funding for a cattle farm are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cattle farms.

    Finish Your Business Plan Today!

How to write a business plan for a cattle farm.

If you want to start a cattle farm or expand your current one, you need a business plan. The example guide below details the necessary information for how to write each essential component of your cattle farming business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cattle farm you are running and the status. For example, are you a startup, do you have a cattle farm that you would like to grow, or are you operating a chain of cattle farms?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the cattle farm industry.
• Discuss the type of cattle farm you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of cattle farm you are operating.

For example, you might specialize in one of the following types of cattle farms:

• Cow-calf: This type of cattle farming involves using mature cattle to breed calves that are then sold to producers.
• Backgrounding: This type of cattle farming involves growing feeder cattle that can be sold to producers once they reach a certain weight or age.
• Finishing: This type of cattle farming involves harvesting cattle to weight in a feedlot, readying them for sale to market.
• Specific Breed: This type of cattle farming specializes in breeding specific types of cattle such as Angus or Hereford.

In addition to explaining the type of cattle farm you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of meat sold, reaching $X amount in revenue, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the cattle farm industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the cattle farm industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cattle farming business plan:

• How big is the cattle farm industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your cattle farm? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cattle farm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cattle farm you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cattle farms.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of meat farms such as poultry, fish, or pork farms, and meat alternative suppliers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of cattle farming business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to acquire your product?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cattle farm business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of cattle farm company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide live cattle, meat, or dairy products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your cattle farm company. Document where your company is situated and mention how the site will impact your success. For example, is your cattle farm located near a city, in a rural area, or adjacent to other farms? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your cattle farm marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in industry publications and networking events
• Reach out to local meat buyers
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cattle farm, including answering calls, feeding and caring for cattle, scheduling employees, billing customers and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your cattle farm business to a new market.

Management Team

To demonstrate your cattle farm’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing cattle farms. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a cattle farm or running a small cattle breeding operation.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your farm have 100 cattle on average and will 20% of your cattle be ready for sale every year? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cattle farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cattle farm:

• Cost of farming equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm lease or information about the type of cattle on your farm.

Writing a business plan for your cattle farm is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert cattle farming business plan, cow calf business plan or a beef cattle business plan. You will understand the cattle farm industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful cattle farm.

Don’t you wish there was a faster, easier way to finish your Cattle Farm business plan?

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Cattle Farm Business Plan FAQs

What is the easiest way to complete my cattle farm business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your cattle farm business plan.

How Do You Start a Cattle Farm Business?

Starting a cattle farm business is easy with these 14 steps:.

• Choose the Name for Your Cattle Farm Business
• Create Your Cattle Farm Business Plan
• Choose the Legal Structure for Your Cattle Farm Business
• Secure Startup Funding for Your Cattle Farm Business (If Needed)
• Secure a Location for Your Business
• Register Your Cattle Farm Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Cattle Farm Business
• Buy or Lease the Right Cattle Farm Business Equipment
• Develop Your Cattle Farm Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Cattle Farm Business
• Open for Business

Learn more about how to start your own cattle farm company .

Other Helpful Business Plan Articles & Templates

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CATTLE FATTENING BUSINESS PLAN

I would like to start a new beef cattle so that I need some valid information.

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Livestock is an integral part of agriculture which significantly contributes to the economic and socio-economic development. Based on its potential in natural resources and human resources, East Kalimantan Province has opportunity to become a beef cattle development area. The development of a corporate-based beef cattle breeding area is an approach which taken toward industrial and business-oriented beef cattle breeding. The concept of breeder corporation will create new strengths such as strengths in human resources, capital, and banking in business development, which can more open the opportunities for the success and growth of the breeder's business. The development of a corporate-based beef cattle breeding area provides opportunities, including: 1) improving the competitiveness and added value of the region and beef cattle commodities in order to support national sustainable food security; 2) strengthening the livestock business system in one area management in a holistic ma...

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The purpose of this study was to determine the development strategy of beef cattle fattening as an effort growing an entrepreneur in Indonesia. The research was conducted in District Boyolali, Central Java, Indonesia in August to September 2016. Methods of data collection techniques do with literature study, observation, interviews and focus group discussions. Design research using descriptive analysis. Data were analyzed using SWOT analysis. SO were in cooperation with other agencies / departments involved in the development of feed processing technologies by utilizing the availability of land and agricultural wastes, in cooperation with the local government to expand the marketing network linked to the demand for beef pieces that continue to increase and improved knowledge of farmers in the development of beef cattle. WO were implement educational programs, training and demonstration plots to improve the skills of farmers and foster the entrepreneurial spirit, feed processing tech...

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Business Management

Raising beef cattle for profit requires land, money, and good business management skills. In this section, you will find information and advice on pricing meat cuts, conditioning cattle for market, and understanding beef carcass yields and losses during processing. Tips on applying RFID tags and performing beef quality audits are available as well.

Starting a Small Beef Cattle Farm

To start a beef farm, you will need to select the type of operation and develop a business plan that includes all startup and ongoing expenses. Consider necessary costs such as the purchase of land, animals, feed, and equipment. Other significant expenses include animal care, pasture management, labor, and building handling facilities.

In addition to the cattle farming business plan, you will need a solid management plan. This document should address beef cattle management practices regarding feed, health and nutrition, fencing, housing, and waste.

Note: The costs of beef enterprises are often specific for each operation. In order to better understand the financial aspect of beef production, producers need to consider direct expenses , direct income, and hidden costs.

Learn more about evaluating the potential financial impact of a decision (such as buying new equipment) with Penn State Extension’s Partial Budgeting online course .

Raising Beef Cattle for Profit

Beef farms generate income mainly from calf production . It is therefore recommended that cattle farmers select and maintain productive cows who produce a calf every year. The animals should be able to sustain their body condition and raise calves with a weaning weight that meets the end goals.

The retail beef price depends largely on the cost of production and the cost of getting the animal to slaughter weight. The production expenses vary based on the animals’ breed and production method (i.e. grain-fed or grass-fed cattle ).

The price of beef per pound can further be affected by factors such as fat percentage and type of cut. Obtaining a beef quality grade or an organic beef certification can help increase profits, as well.

Direct Income for Cattle Operations

Apart from the sale of cattle, beef producers can generate direct income from a number of other services. Depending on the enterprise, revenue can be generated from consulting, breeding cattle, hauling, and mowing pastures. Income may also be increased by selling embryos and bull sperm.

Selling hay and feed raised on the farm is another valuable option for cattle farmers. Estimating the expenses of home-raised feed, however, can be challenging.

One way for producers to calculate the actual feed costs is by using Penn State’s CropCents app . Once the data for all on-farm grown crops – including operating expenses – is entered, users can see the yield in tons/acre and the cost/ton.

Beef Cattle Market Trends

With a huge market for beef, raising cattle in the US is one of the most common and profitable farming businesses.

The way cows are raised and fed has a big effect on the retail price. Beef is very nutritious, but different feeds deliver different products and tastes. Currently, there is an increased interest in pasture-raised beef, as well as organic and/or locally grown meat products.

Educational Resources for Cattle Farmers

Raising beef cattle for profit is a huge undertaking. Find comprehensive information on beef cattle management with Penn State Extension’s articles, webinars, online courses, and workshops.

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• Product Name
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Beef Background Production

Beef Production and Management

Dairy-Beef Production

Pennsylvania Nutrient Management Program

Plastic-Wrapped Hay Bale Research

Beef Cow-Calf Production

Now is the Time to Consider Beef Direct-to-Consumer Marketing

Why Aren't All Meat Processors the Same in Pennsylvania?

Exploring Two Ways to Direct Market in Pennsylvania

So You Want to Raise Beef Cattle?

Starting a Freezer Beef Business

The Most Valuable Investment in the Beef Herd - The Bull

Does the Growing Beef x Dairy Trend Work for the Feeders

Custom Feeding Cattle

Understanding Beef Carcass Yields and Losses During Processing

Beef Production

How Much Should You Charge? Pricing Your Meat Cuts

Beef Cow-calf Operation

Integrating Grazing into Cropping Systems: Infrastructure

Building an Emergency Response Plan for Livestock Producers

Benefits of Weighing Beef Cattle

Replacement Heifers: Management Options Benefit Bottom Line

Calculating the Cost of Beef Production

2016 Calf-fed Holstein Demonstration Results

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Business Plans for Beef Cattle Backgrounding Enterprises

Backgrounding is a feeding program that targets weight gain in feeder cattle to develop the skeleton and muscle tissue of the animals while minimizing fat deposition.

Backgrounding diets typically include high levels of forages and often include limited amounts of cereal grains and various by-products of grain production. Cattle feeders normally purchase lightweight feeder cattle for backgrounding programs, and design feeding programs considering the timing of marketing finished cattle.

The Business Plan

A business plan is important to evaluate financial and production decisions related to the business. A business plan identifies requirements for financing capital items, such as feeding pens, handling facilities and feeding equipment, or sourcing operating credit or financing feeder cattle purchases. In addition, development of the business plan formalizes production practices, such as feeding and health management programs, and describes the marketing program for cattle at the completion of the backgrounding phase. Completing a business plan is similar to planning for a road trip: business plans help you identify where you are going, and, similar to a road map, assist you in reaching your final destination.

Similar to other agricultural endeavours, feeding cattle involves risk. While the price of feed and market price of feeder cattle are the two largest variables that can affect profitability of cattle feeding enterprises, factors such as experience of the cattle feeder, size of operation, animal performance and health status of calves contribute to the success of the enterprise. To reduce risk, some backgrounders choose not to own their feeder cattle, but custom-feed cattle for other producers or cattle investors. A business plan identifies risk factors for each operation, and allows producers to evaluate alternatives to 100-per-cent ownership of feeder cattle and manage their risk accordingly. Risk management strategies form a critical component of the business plan, and will be reviewed by lenders and other stakeholders when assessing the financial viability of backgrounding cattle.

A business plan helps you to:

• Analyze the enterprise on paper and identify strengths, weaknesses, opportunities and threats (SWOT);
• Make the transition from idea to implementation of the business enterprise;
• Provide lenders, cattle investors and other stakeholders with a clear understanding of your business and the requirement for external sources of capital or operating credit;
• Standardize operating procedures and identify marketing strategies for backgrounded feeder cattle;
• Establish performance and financial benchmarks and analyze year-to-year variance; and
• Manage your business more effectively.

Developing your Business Plan

A typed, professional appearance enhances business plans, especially if it will be presented to others. If this is not possible, a neat, handwritten business plan is still better than nothing at all. Elements of a business plan include:

• Title Page: Includes the business or farm name and contact information for the principal individual(s) responsible for the enterprise. Include the date the plan was created or the period of time that the business plan covers.
• Executive Summary: The executive summary is one of the most important components of a business plan. As the executive summary is the first and sometimes only part of the business plan that is read, it needs to be a concise summary of the business proposal that identifies the purpose or objective of the operation, outlines capital and credit requirements and indicates how funds will be used. It should be written last so that it summarizes the entire business plan and provides the readers with answers to the following questions:
• What is the purpose of this business plan (operational guide, financing proposal or both)?
• What is the nature of the business?
• What is the business structure (sole proprietor, corporation, partnership)?
• What is being produced or what services are being provided?
• Where will the product and/or services be marketed?
• What knowledge, skills and abilities do you have regarding feeding and care of cattle?
• Table of Contents: A single page listing topics and corresponding page numbers.
• Mission, Vision, Values and Goals Statements: These statements are typically one paragraph in length, and clearly state the objective of the enterprise, the short- and long-term goals of the producer and the values important to the individual. Animal welfare, environmentally sustainable production or verified beef production practices are examples of values producers may choose to incorporate in these statements.
• Industry Overview: The industry overview should be written to provide a reader who may have limited knowledge of the subject with a brief description of the cattle feeding industry. A simple diagram illustrating the structure of the cattle industry is often useful to include in this section to visually represent where backgrounding fits within the beef cattle supply chain. Current statistics should be included, and be sure to reference sources of information. Relevant information may include, but should not be limited to: beef cow numbers, number of feeder cattle by weight class, feed grain and forage production and number of cattle feeders. Industry trends and opportunities can be identified in this section. Once the reader has reviewed this section of your business plan, specific information related to your project can be put into the perspective of the larger industry.
• Business Description: This section includes information specific to your enterprise. Type of business, structure of business, relation to other enterprises, and size and scale of the operation, including land resources, should be identified.

Ownership of feeder cattle or custom feeding arrangements should be clearly identified in this section, as the content of subsequent elements of your business plan will be affected by this major decision. Custom feeding arrangements will be formalized, with a written contract outlining the responsibilities of both the cattle feeder and investor. Payment for services (cost per gain, yardage plus feed costs or cost per day), expectations of animal performance, health status of calves at time of placement, minimum number of days on feed, death losses and animal warranties should be clearly identified and drafted in the agreement. A copy of the contract should be included as an appendix to the business plan.

• Human Resource Management: This area describes your business and management experience in feeding and caring for cattle. It is important to identify if you will be paying yourself for the labour and management of the enterprise, or if the profit (loss) of the business will determine the return on your labour and investment.

If additional non-family labour is required for the backgrounding cattle enterprise, a description of employment variables, such as salary, benefits and provision for training, should be included. Development activities designed to improve management expertise should be included in this section.

A contingency plan should be identified in this section that details how the enterprise will be managed and day-to-day operations will proceed in the event of illness, injury or death.

• Operational Plan: This section outlines the production processes, sets performance targets and establishes costs that will be included in cash flow projections. Backgrounding cattle enterprises should include the following sections within the operational section of the business plan:

Feeding Program

Excluding the purchase of the feeder calf, the cost of feed represents the single largest variable in feeding cattle. Backgrounding diets are typically higher in forages to minimize fat deposition and promote frame and muscle growth. Purchasing or contracting some or all of the forage, grain and supplements prior to placing cattle in the feedlot can reduce the risk of significant price increases during the feeding period. It is recommended that nutritional advice be sought in the development of feeding programs and monitoring of animal performance. A feeding protocol can be developed as part of the operational plan to ensure consistency of feeding regardless of who is responsible for daily feeding.

Herd Health Program

With the assistance of a veterinarian experienced in feeder cattle production, a herd health program should be designed and implemented for all backgrounding enterprises. Treatment and vaccination protocols, implant strategies and post-mortem procedures can be developed and documented in the herd health section of the business plan. These protocols can form the basis for a sound record-keeping system as part of a quality assurance program. Annual review of each program within the operational plan allows for ongoing adjustment and fine-tuning of important production practices.

• Marketing Plan:

Cattle feeders who own their cattle inventory assume a higher risk than feeders who are custom-feeding cattle for other investors. While the potential for profit is greater, so is the potential for loss, and the business plan should reflect the reality of the cattle feeding business. Owning the inventory of cattle requires the development of a marketing plan within the business plan. Consider the following when developing your marketing plan:  

Identify the target weight for marketing feeder cattle. Lighter feeders can be placed on pasture prior to finishing in feedlots, or heavier animals can be marketed directly to feedlots.

Identify the time of year for targeted marketing. Normally, grass cattle are in greater demand during the early spring, and heavy feeders are generally marketed to feedlots during late summer.

Identify where off-type animals will be marketed.

Price Discovery

Backgrounded cattle can be sold via auction (regular, presort, satellite or electronic) or be forward-contracted to finishing cattle feedlot operators. Sale conditions, including weighing considerations, marketing commissions, shrinkage and delivery times, should be clearly identified for all marketing alternatives. It is important to recognize that prices for cattle (finished and feeder) are established at the Chicago Mercantile Exchange. Fluctuations in the value of the Canadian dollar relative to the United States currency represent significant price risk to the Canadian cattle feeder. Risk management plans should identify foreign exchange exposure and strategies to minimize negative effects. Development of marketing plans as part of the business plan allows producers to consider all of the factors that may affect market price for cattle at the end of the backgrounding period. Given the complexity of cattle marketing, producers are strongly encouraged to seek advice and marketing assistance prior to placing cattle on feed in a backgrounding program.

The Livestock Price Insurance Program (LPI) is an easy to use risk management tool that provides beef producers with protection against price risk, currency risk and basis risk. The program uses current and historical market information to set and offer market driven coverage in the form of an insurance policy. LPI protects against volatility in the marketplace and can be used to set a "floor" price on livestock, allowing for the security of knowing what your bottom line income will be. LPI can also be used to obtain a cash advance through the Advance Payments Program.

• Environmental Plan:

Environmental farm planning is an important component of risk management for any agricultural operation. Beef cattle backgrounding operations may require approval from Saskatchewan Agriculture's Agricultural Operations Unit prior to the construction of an intensive livestock operation (ILO). The Agricultural Operations Act requires ILO proponents to submit plans for manure storage, manure management and mortality management. The intent of this legislation is to ensure provisions have been made to protect surface and groundwater from contamination by run-off from livestock facilities. It is also important to discuss development of any ILO with your neighbours and your local municipality to address any concerns or identify any development bylaws that may be relevant to your enterprise. Saskatchewan Watershed Authority should be contacted regarding licensing requirements related to the provision of water for the cattle operation.

• Financial Plan:

The financial plan is an important component of your business plan, and usually includes present financial documents as well as pro forma financial statements that identify the financial changes that will occur to the enterprise over a period of time. Requirements for debt financing and repayment schedules should be included in the financial plan. It is important to identify any assumptions that are being made that may affect the accuracy of the financial statements. Examples of documents included in the financial section of the business plan are:

• Breakeven analysis of backgrounding cattle;
• Current income statement and projected income statements for an identified period of time;
• Monthly cash flow projections for the current and subsequent fiscal years;
• Loan amortization tables; and
• A current balance sheet and projected balance sheets for an identified period of time.
• Supporting Professionals:

Identify supporting professionals that provide services or advice for your operation in this section of your business plan. These can include business partners, such as accountants, lawyers or financial service providers, as well as veterinarians, nutritionists, consultants and marketing partners.

• Supporting Documents:

A personal resumé identifying your education, prior work experience and management and feeding experience related to beef cattle production should be included in this section. If other individuals will be involved in the management of the backgrounding enterprise, include their personal resumés as well.

For custom backgrounding operators, letters of intent from prospective cattle suppliers or investors should be included. If you have previously fed cattle for someone else, include letters of reference.

A business plan is an important document that allows you to evaluate your enterprise on paper. This document serves as a basis for obtaining financing and procuring cattle supplies. Operational plans are developed and performance benchmarks established in your business plan. Once completed and updated annually, your business plan will provide you with an overview of past performance and a plan for future years.

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Cattle Farm Business Plan

To get started with a new cattle farm business , you need a proactive business plan in place. Getting some insights into the tricks of the trade can be an excellent way to get a footing on where to start. You can spend some time doing thorough research about the different departments you’d need to take care of for a flourishing Cattle Farm Business.

Industry Overview

The Cattle Industry involves cattle production, including beef, dairy, cattle coats, leather, and other essential products. Beef production and dairy production are the two significant revenue-earning domains in the cattle industry. While the beef industry estimates to be worth fifty billion dollars per year alone, over a hundred billion dollars are generated in the Cattle Industry’s annual profits in the US. These statistics make a cattle business a traditionally profitable venture to invest in.

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Things to Consider Before Writing Your Cattle Farming Business Plan.

Demarcated departments.

Demarcate different concerned departments for your farm business, including real estate involved, cattle resources, staff, and other management. Get an idea of the cattle stock you want to invest in, for instance, the number of cows you’d like to start your business with.

Resources Required and Budgeting

A typical cattle farm requires various resources for proper smooth functioning. The dairy equipment and pasture requirements must also be considered separately before you settle on a blueprint for your business. Based on the location of your choice as well as weather conditions, the cost incurred for these resources might vary. The overhead expenses of the staff members are a significant factor. Having a budget for these requirements can help keep your plan on track.

Customer base and Products for sale

Many cattle farm businesses stick to dairy and meat while others venture into hiding products as well. You need to determine the exact products your farm business will sell to be able to come up with a realistic business plan.

Competitors and Market-Survey

Studying market competitors is an excellent way to pinpoint the aims of your business. A detailed market survey can help you understand what works to yield the best profits.

Write Your Business Plan

To chalk out a credible business plan, you can go through some sample business plans to get an idea of specific aspects to cater to. Read through some plans of existing businesses to work out aspects that need attention in each department. You can also read about some drawbacks and loopholes to take care of these in your business plan.

Our cattle farm business plan can help you get the hang of the different aspects of a Cattle Farming Business. It shares an outline that a typical cattle farming business could implement with some personalized tweaks.

The Upmetrics business plan software can help you create a comprehensive business plan for your cattle farming business. We have drafted a cattle farm business plan using our software to help you lay down what to aim for before creating your business plan. Get started with your creating a business plan that fits your requirements to the tee.

Cattle Farm Business Plan Outline

This sample cattle farm business plan includes the following sections:

• Keys to Success
• Business Summary
• Company History
• Past Performance
• Products & Services
• Market Summary
• Market Analysis (Pie)
• Target Market Segment Strategy
• Competition and Buying Patterns
• SWOT Analysis
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Sales by Year
• Detailed Budget
• Personnel Plan
• Important Assumptions
• Break-even Analysis
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios
• Profit and Loss
• Balance Sheet

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Download a sample cattle farm business plan

Need help writing your business plan from scratch? Here you go;  download our free cattle farm business plan pdf  to start.

It’s a modern business plan template specifically designed for your cattle farm business. Use the example business plan as a guide for writing your own.

After  getting started with upmetrics , you can copy this sample cattle farm business plan into your business plan and modify the required information and download your cattle farm business plan pdf and doc file. It’s the fastest and easiest way to start writing your business plan.

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Beef Cattle Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Agriculture Industry » Livestock Farming » Cattle and Dairy

Are you about starting a cattle rearing farm for beef ? If YES, here is a complete sample cattle rearing business plan template & feasibility study you can use for FREE. To start with, you may want to consider going on the internet to read up a whole lot about the trade, as well as get information from those who are already in it. Below is a sample cattle rearing business plan template;

A Sample Beef Cattle Farming Business Plan Template

1. industry overview.

The agricultural industry of which livestock farming or better still cattle rearing is a subset of is no doubt among the leading industry in most countries of the world; it is the industry that produce food for the populace and raw materials for industries.

Because of the significant role the agriculture sector plays, the government of most countries ensures that they go all the way to subsidize seedlings, fertilizers, and farming implements and machinery for farmers and also encourage entrepreneurs to go into various kind of farming including cattle rearing.

There are several business opportunities available in the agricultural industry and one good thing about the industry is that there is market for all the produce from the industry. 

Cattle rearing is of course a thriving and profitable business because usefulness of beef and other by products from cattle. People eat beef, drink their milk, and use their fur and skin. With cattle milk, cheese can be made, along with other dairy products.

The Beef Cattle Farming industry is indeed a large industry and pretty much active in countries such as United States of America, Israel, Argentine, Holland, Egypt, China, Germany, Turkey and Nigeria et al. There is no single livestock farming company that has dominate market share in the industry hence smaller cattle rearing business can successfully make profits.

Statistics has it that in the united states of America alone, there are about 38,184registered and licensed livestock farming business responsible for employing about 62,463and the industry rakes in a whooping sum of $13 billion annually. The industry is projected to enjoy 3.1 percent annual growth.

If you are looking towards leveraging on the agriculture industry to generate huge income, then one of your best bet is to start cattle rearing business. Cattle rearing business is all about mass – breeding of cattle ( cows, oxen, bulls, bullocks, steers, heifers and calf et al ) for the sole aim of making profits. In most cases it is referred to as livestock farming business.

One thing is certain about cattle rearing business, if you are able to conduct your market research and feasibility studies , you are more likely not going to struggle to sell your cattle and its products because there are loads of people out there we eat beef, drink milk and industries that make use of byproducts from cattle in manufacturing their products.

Over and above there are few barriers to entry into the livestock production industry. Usually, all inputs are readily available. In the nearest future, players in this industry may face the highest costs associated with accessing technology, especially in relation to genetic modification engineering in livestock breeding.

So also, intellectual property rights protecting new inventions and technology may mean that new entrepreneurs coming into the industry will need to pay license fees and this of course will cause increase in the start – up fee for starting a livestock breeding/cattle rearing business.

2. Executive Summary

Perry Coleman and Family Cattle Ranch, LLC is a registered and licensed livestock farming company that will be based in the outskirt of Dallas, Texas – United States. We have done our detailed market research and feasibility studies and we were able to secure a hundred acres of land to build our cattle ranch and start our cattle rearing business.

Our cattle ranch / cattle rearing business is a going to be standard one hence will be involved in commercial breeding of cows, oxen, bulls, bullocks, steers, heifers and calf et al. We will also be involved in boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services as well.

In the nearest future, hopefully within the first five years of officially running Perry Coleman and Family Cattle Ranch, LLC, we will start our meat processing plant and milk processing plant and also start exporting our products to other parts of the world.

Which is why aside from the fact that we’ve secured the required farming land for breeding cattle in commercial level, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21 st century cattle rearing business workforce that we want to build.

We are in the cattle rearing business because we want to leverage on the vast opportunities available in the livestock farming industry, to contribute our quota in growing the U.S. economy, in national food (meat) production, raw materials production for industries, to export agriculture produce from the United States to other countries and over and above to make profit.

Perry Coleman and Family Cattle Ranch, LLC is well positioned to become one of the leading cattle rearing business in the United States of America, which is why we have been able to source for the best hands and equipment to run the business.

We have put process and strategies in place that will help us employ best practices when it comes to cattle rearing processes, meat and milk processing and packaging as required by the regulating bodies in the United States of America.

Perry Coleman and Family Cattle Ranch, LLC is a private registered livestock farming company that is owned by Perry Coleman and family. The company will be fully and single handedly financed by the owner – Perry Coleman and his immediate family members at least for a period of time.

Before starting Perry Coleman and Family Cattle Ranch, LLC, Perry Coleman has worked with some of the leading livestock farms in the United States of America. He has worked in the industry for well over 10 years before resigning to start his own cattle rearing business.

3. Our Products and Services

Perry Coleman and Family Cattle Ranch, LLC is a licensed livestock farming business that is committed to cattle rearing, meat and milk processing and packaging for both the United States’ market and the global market. We will also produce related raw materials for industries in commercial quantities.

We will also ensure that we operate a standard food processing plant as part of our complimentary business offering. These are the areas we will concentrate on in our livestock farming business. If need arises we will definitely add more related animal breeding services to our list;

• Boarding services
• Breeding services
• Dairy support services
• Livestock health services
• Farrier services
• Sale and export of cotton wool and other dairy products
• Sale of Cattle and milk
• Sale of processed meat (beef)/can – beef (Processed Diary foods, and can beef et al)
• Shearing services
• Livestock farming related consultancy and advisory services

4. Our Mission and Vision Statement

• Our Vision is to become one of the leading cattle rearing business brands not just in Dallas – Texas, but also in the United States of America.
• Our mission is to sell our produce ( cattle, beef and milk ), byproducts and processed meat in commercial quantities both locally, nationally and internationally.
• We want to build a cattle rearing business that can favorably compete with other leading livestock farming / cattle rearing brands in the United States of America and in the globe.

Our Business Structure

Perry Coleman and Family Cattle Ranch, LLC is a cattle rearing company that intend starting small in Dallas – Texas, but hope to grow big in order to compete favorably with leading cattle rearing and livestock farms in the industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own. This is why we are committed to only hire the best hands in and around Dallas.

At Perry Coleman and Family Cattle Ranch, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders ( the owners, workforce, and customers ).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions; Below is the business structure of Perry Coleman and Family Cattle Ranch, LLC;

• Chief Operating Officer

General Farm Manager

Administrator/Accountant

• Cattle Ranch Manager/Supervisor
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervises other section manager
• Ensures compliance during project executions
• Provides advice on the management of farming activities across all section
• Responsible for carrying out risk assessment
• Using IT systems and software to keep track of people and progress of the growth of crops, fishes, birds and animals
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Represent the organization’s interest at various stakeholders meetings
• Ensures that farming goals desired result are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Defines job positions for recruitment and managing interviewing process
• Carries  out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily farming activities across the various farming sections.
• Defining job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Cattle Ranch and Animal Manager/Supervisor

• Responsible for managing the commercial breeding of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al)
• Responsible for managing boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.
• Works closely with the General Manager to achieve the organizations’ goals and objectives

Sales and Marketing Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of new business
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Field Workers/Contract Staff

• Responsible for feeding cattle and other livestock as instructed by the supervisor
• Responsible for cleaning the cattle ranch
• Change the water in the water trough/trench as instructed by the supervisor on a regular basis
• Handles farm implements and machines as instructed by the section manager/supervisor
• Assists in handling the breeding of cattle
• Carries out task in line with the stated job description
• Assist in transport working tools and equipment from the farm and back to the designated store room
• Handles any other duties as assigned by the farm manager

Client Service Executive/Front Desk Officer

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the cattle ranch manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for the company
• Distributes mails in the organization
• Handles any other duties as assigned my the line manager

6. SWOT Analysis

Perry Coleman and Family Cattle Ranch, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis.

We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard cattle rearing business that will favorably compete with leading cattle rearing/livestock farms in the United States of America and in the rest part of the world.

As a cattle rearing business, we look forward to maximizing our strength and opportunities and also to work around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Perry Coleman and Family Cattle Ranch, LLC;

Our strength as a cattle rearing business is the fact that we have healthy relationships with loads of major players (agriculture merchants) in the livestock farming industry; both suppliers and buyers within and outside of the United States.

We have some of the latest cattle rearing machines; tools and equipment that will help us breed our cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in cattle rearing/livestock farming industry in our payroll.

Our weakness could be that we are a new cattle rearing business in the United States and we may not have the required cash to pump into the publicity of our business. We are aware of this and from our projection will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified, we know that there are loads of homeowners, and industries that will source for cattle ( cows, oxen, bulls, bullocks, steers, heifers and calf et al ), beef, and milk and also industries that will source for the raw materials from our livestock farms both in the United States of America and other parts of the world.

Some of the threats and challenges that you are likely going to face when you start your own cattle rearing are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters ( draughts, epidemics ), unfavorable government policies and the arrival of a competitor ( a commercial farm that rear same animals ) as our cattle ranch within same location.

There is hardly anything you can do as regards this threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

One of the common trends in the commercial cattle rearing or livestock farming line of business is that most players in the industry are no longer concentrating only on farming a particular species of livestock or just livestock / cattle farming alone.

They now find it easier to run both livestock farming and crop cultivation. Some even go ahead to include meat and milk processing and packaging business alongside their product offerings; it helps them 8. Our Target Market

Naturally, the target market of those who are the end consumer of livestock farm produce and also those who benefits from the business value chain of the agriculture industry is all encompassing; it is far – reaching.

Every household consumes produce from livestock farms be it meat, milk, and the skin (leather) used for bags, belts and shoes production et al. So also a large chunk of manufacturing companies depends on livestock farms for some of their raw materials. In essence a cattle farmer should be able to sell his or her farm produce to as many people as possible.

We will ensure that we position our business to attract consumers of agriculture produce not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our farm produce either in raw form or processed form to other countries of the world.

Our Competitive Advantage

It is easier to find entrepreneur flocking towards an industry that is known to generate consistent income which is why there are more cattle ranches in the United States of America and of course in most parts of the world.

For example, Statistics has it that there were 2.2 million farms in the United States of America, covering an area of 922 million acres. These goes to show that there are appreciable numbers of farmers in the United States of America but that does not mean that there is stiffer competition in the industry.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming / livestock farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Perry Coleman and Family Cattle Ranch, LLC is fully aware that there are competitions when it comes to selling livestock and meats all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable livestock farming processes that can help us sell our livestock and processed meat and milk at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard commercial livestock farms that will be involved in diverse areas such as animal rearing and meat and milk processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our objectives as a standard commercial cattle rearing business with a meat and milk processing and packaging plant.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Perry Coleman and Family Cattle Ranch, LLC is in the livestock breeding industry for the purpose of maximizing profits hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives.

In essence we are not going to rely only on the sale of our livestock to generate income for the business. Below are the sources we intend exploring to generate income for Perry Coleman and Family Cattle Ranch, LLC;

• Sale of Cattle(cows, oxen, bulls, bullocks, steers, heifers and calf et al)  and milk

10. Sales Forecast

From the survey conducted, we were able to discover that the sales generated by a commercial livestock farm / cattle rearing business depends on the size of the ranch, the network of the business. We have been able to critically examine the cattle rearing industry cum commercial livestock farm business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

The sales projection is based on information gathered on the field and some workable assumptions as well with respect to the nature of cattle rearing business that we run. Below are the projections that we were able to come up with for the first three years of running Perry Coleman and Family Cattle Ranch, LLC;

• First Fiscal Year-: $200,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $700,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies.

• Marketing Strategy and Sales Strategy

We are quite aware that the reason why some commercial livestock farms hardly make good profits is their inability to sell off their livestock to a larger market. In view of that, we decided to set up a standard meat and milk processing and packing plant to help us maximize profits.

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and companies that rely on raw materials from the livestock farming industry who are likely to refer become our customers.

In summary, Perry Coleman and Family Cattle Ranch, LLC will adopt the following strategies in marketing our cattle rearing produce;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the agriculture industry, companies that rely on the livestock farming industry for their raw materials, hotels and restaurants and agriculture produce merchant et al.
• Advertise our business and livestock farms in agro – allied and food related magazines and websites
• List our commercial livestock farms on yellow pages ads (local directories)
• Attend related agriculture and food expos, seminars, and business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means ( both conventional and non – conventional means ) to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our cattle rearing business. Below are the platforms we want to leverage on to boost our cattle rearing brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events / programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our business
• Install our Bill Boards on strategic locations all around Dallas – Texas
• Engage in road show from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact corporate organizations and residence in our target areas by calling them up and informing them of Perry Coleman and Family Cattle Ranch, LLC and the farm produce we sell
• List our commercial livestock farms in local directories / yellow pages
• Advertise our commercial cattle ranch in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

Some of the factors that will help you sell your farm produce at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there is natural disaster in the location where you have your commercial livestock farm, then it will directly affect the prices of your livestock.

Over and above, if you want to get the right pricing for your livestock, then you should ensure that you choose a good location for your cattle ranch, choose a good breed that will guarantee steady and multiple breeding (prolific breeds), cut the cost of running your farm to the barest minimum.

And of course try as much as possible to attract buyers to your farm as against taking your livestock or even your produce to the market to source for buyers; with this, you would have successfully eliminate the cost of transporting the goods to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our cattle rearing produce is to sell them at competitive prices hence we will do all we can to ensure that the prices of our livestock and processed and packaged beef and milk are going to be what other commercial livestock farmers would look towards beating.

One thing is certain; the nature of cattle rearing business we are involved in makes it possible for farmers to place prices for their livestock/farm products based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into loss. The easier you sell off your livestock when they are mature the better for your business.

• Payment Options

The payment policy adopted by Perry Coleman and Family Cattle Ranch, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Perry Coleman and Family Cattle Ranch, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a cattle rearing business / commercial livestock farm, there are some key factors that should serve as a guide. The most important expenses is the construction of the cattle ranch / cages/fencing as the case may be.

For example, the start – up cost for a fish farm is different from the start – up cost for mechanized crop farming, so also the start – up cost for poultry farming is different from the start – up cost of cattle ranch (dairy farm) et al. As a matter of fact, if you choose to start a mechanized crop farming, then you should be willing to raise huge capital base to start the business.

This is so because some cultivation machines/equipment can be pretty expensive. Below are some of the basic areas we will spend our start – up capital in setting up our cattle rearing business/cattle ranch;

• The Total Fee for incorporating the Business in United States of America – $750.
• The budget for key insurance policies, permits and business license – $2,500
• The amount needed to acquire/lease a farm land  – $150,000
• The amount required for preparing the farm land (for construction of cattle ranch and cages/fencing et al et al) – $100,000
• The cost for acquiring the required working tools and equipment/machines/fencing et al– $50,000
• The amount required for purchase of the first set of cattle (cows, oxen, bulls, bullocks, steers, heifers and calf et al) – $150,000
• The Cost of Launching an official Website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $650,000 to start a standard cattle rearing/commercial livestock farming business in the United States of America.

Generating Funding/Startup Jonah Perry Coleman and Family Cattle Ranch, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as cattle rearing.

No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Perry Coleman and Family Cattle Ranch, LLC is a family owned business and it will be financed by the owners of the cattle ranch – Perry Coleman and family. These are the areas where we intend sourcing for fund for Jonah Livingston and Family Farms Ltd;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $450,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Perry Coleman and Family Cattle Ranch, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce ( livestock and processed beef and milk ) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Perry Coleman and Family Cattle Ranch, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check : Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All form of Insurance for the Business: Completed
• Leasing of farm land in Dallas – Texas: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building /construction of cages and fence et al: In Progress
• Purchase of the needed working tools, machines and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with key players in the industry (agriculture farm produce merchants and transporter / haulage): Completed

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Starting Beef Cattle Fattening Farming Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | Agriculture , All Articles , Business Ideas , Business Plans , Livestock Farming

Commercial cattle farming and fattening form the backbone of the beef industry in the country. In a lot of cases, cattle fattening can be part of a diversified farming enterprise, which can help manage production and market risks. The majority of cattle sold through abattoirs come from feedlots. This livestock can be self-produced or brought in, with commercial feedlots being the major finishers of beef. Beef cattle fattening a a very profitable business to start in South Africa. First off let’s just familiarise ourselves with what beef cattle pen fattening is. Cattle pen fattening entails the feeding of beef cattle with a balanced protein-high diet for a period of 3-4 months under confinement. This is done to increase live weight of the cattle and improve the grade/quality of the beef so as to fetch higher prices when selling the beef cattle. Cattle fattening ensures that the cattle express their full potential for growth. Confinement of beef cattle in pens is meant to ensure that the genetic coding of the beasts is fully expressed in their growth and to minimize weight loss through movement.

The demand for beef in South Africa is very high. Over 85 000 metric tonnes of beef are consumed every month in South Africa. In case you’re wondering how you can start such a cattle fattening farming business then kindly read along. This article will outline how to start a beef cattle fattening business in South Africa, and the beef cattle fattening business plan – PDF, Word and Excel.

Before you start a beef cattle farming business in South Africa, there are some important decisions which you have to make. You have to decide on the size of your beef cattle fattening business ie how many cattle you will have at your cattle farm.  There are many different cattle breeds, so you have to select which breed you will use, location of your business, and your target market. The size of your beef cattle farming business will depend on the amount of capital you have, and your target market. It’s important that you get a good beef cattle fattening business plan before you start beef cattle fattening business in South Africa.

Business Model

Cattle pen fattening is the feeding of beef cattle with a balanced, high-protein diet for a period of 3–4 months under confinement. Animals can be fed in different ways in order to obtain a heavy carcass. When purchasing your cattle, it’s important to evaluate the potential for beef fattening because different types of cattle respond differently to feed. You should also consider the market price of various beef grades. You should take into account the cattle’s breed, gender, maturity type, and age. Some cattle are more suitable for fattening than others. It’s very important that you give your cattle the right quantity and type of feed. The success of your cattle fattening business depends largely on the ability of your cattle to gain weight and to produce high-quality beef. These factors are affected by the quality and quantity of your feed. Proper feeding techniques will ensure that your cattle will grow, utilize the feed efficiently, and produce good quality meat. This is how you can increase your profits from the cattle fattening farming business. Failing to properly feed the cattle will lead to losses.

Market Research

For any kind of business, you must conduct market research. You need to research your market in order to build a successful, sustainable cattle fattening business. You also require enough knowledge in order to effectively run your feedlot. In addition to good cattle fattening techniques, good management skills, and financial management, you must understand the industry you operate in. Researching and finding your market are essential when developing a cattle fattening business. Your market has a huge impact on your producer’s net sale price. In fact, your company’s profitability is determined by the market. From market research, you can determine the buying price of the cattle, the costs of the feed, the price margin, the feed margin, the feed conversion efficiency ratio, and the unit cost when selling. As a farmer, you should also be aware of the alternative markets available to you in order to choose the one that yields the greatest return . Ensure that you periodically check prices and market conditions. Market research also helps you know your buyers’ needs and demands. Local and international meat markets are constantly changing. As a result, your cattle fattening business should be market-driven. Customers are becoming more sensitive about animal welfare and the ethical rearing of all animals. These customers want more information about the meat they buy, especially where it comes from and how it has been raised. As a cattle fattening business, you are required to review your production methods and standards.

You need land – this is where you will build the beef cattle feedlots. Sustainability of the land must be thoroughly assessed beforehand. The location must be very strategic i.e. near major road networks and near reliable water sources such as boreholes, rivers or dams. Alternatively, or rather as a buffer, water reservoirs must also be setup. Beef cattle pen fattening is done with the cattle in confinement ie in pens/feedlots. The cattle won’t graze for pasture. This means that a beef cattle pen fattening business needs less amount of land as compared to a cattle ranching business.

Housing and Equipment for Beef Cattle Farming Business

The beef cattle will be housed in feedlots / pens. Feedlots are confined areas with feeding and watering facilities where the cattle are fed by hand or mechanically for the purpose of beef fattening. That’s where the cattle will be resident during the duration of their 90-120 days fattening process. Confinement of the cattle in feedlots is meant to minimise energy and weight loss through movement. The beef cattle fattening feedlots must be setup in such way that they protect the cattle from predators and adverse weather conditions. The housing must promote ease of access to food and water, free movement and adequate lighting to the beef cattle. The necessary equipment for a beef cattle fattening business in South Africa include the feeding and drinking troughs. Your commercial beef cattle farming business plan should include the costs of purchasing the equipment and the beef cattle feedlots.

Beef Cattle for Fattening

To start the cattle fattening business in South Africa, you need the beef cattle to fatten (also known as feeders). You can choose to either fatten your own cattle or you can purchase cattle for fattening from other farmers. Purchasing cattle for fattening needs a lot of skill. You must be experienced in evaluating the potential for fattening of different types of cattle (maturity type, breed, age, gender) in relation to the market price of different grades of beef. Different breeds of cattle have different growth potential, so you must be well-informed. Some types of cattle are more suitable for cattle fattening than others. If you make the wrong decision in buying the cattle, you will encounter a loss before you even start the beef cattle fattening business.

It’s also important to have good negotiating skills, so that you acquire the beef cattle at a good/low price. Buying expensive cattle will lead to losses in your beef cattle fattening business. You can source your cattle from other farmers or from rural areas where it is cheap. The prices of cattle vary throughout the year. You should always have money to buy cattle when the prices are favourable. Lack of money when the prices are favourable is a lost opportunity for profit. Be wary of cattle farmers who dispose of their diseased cattle. Take time to do proper due diligence to ensure that you’re buying healthy cattle – don’t just be roped in by the low prices.

Feed for Beef Cattle Fattening

As you can probably tell, feeding costs are high in the beef cattle fattening business. The correct types of feeds and the right mixture ratios are critically important in order to produce cattle with high weights and high beef quality. If these things aren’t done then the unfortunate result may be failure to meet slaughter weight targets or beef quality target. Proper feeding techniques will enable the cattle to efficiently utilise the feed and thus gain weight and produce good quality beef. Feeding can be done using a combination of complete commercial cattle fattening feeds and supplementary feeds eg maize. Cattle fattening is done to achieve two major things, increase in live weight (more weight results in more revenue when selling) and increase in the quality of beef (high quality beef fetches higher prices). Proper feeding regime will ensure that you achieve these objectives. Your beef cattle fattening farming business plan should take into account the feeding costs.

Profitability of Beef Cattle Fattening Business in South Africa

If done properly, cattle fattening business is very profitable in South Africa. The profitability of the beef cattle fattening business in South Africa depends on a variety of factors. These factors include: buying price of the feeders/cattle, the cattle fattening feeds cost, the feed conversion ratio, the selling price per KG, the feed margin and the price margin. Before starting beef cattle fattening, it’s important that you understand the margins and ratios. Understanding the margins and ratios will enable you to calculate your profit margins when buying cattle at a specific price. Thus you will make an informed decision before you buy the cattle. All those margins are explained in our beef cattle farming business plan.

Sales And Marketing Strategies

A feedlot farm’s marketing has many aspects. The kind of marketing strategies you employ will depend on the size of your feedlot. Small-scale feedlots have limited marketing needs compared to large commercial ones. In many cases, cattle from a feedlot are usually sold to butcheries, abattoirs, auctions, butcheries, or individuals. Your marketing efforts should be directed to these customers. You must promote your feedlot business to the right people so that you can generate enough revenue. One way you can market your feedlot is by having an online presence. Take advantage of social media and set up an affordable, basic website. You can also list your business in the yellow pages and online directories such as Google My Business or Maps. Do not neglect your online presence once it’s setup. Keep your social media pages active and your website up-to-date. Another way to promote your cattle fattening business is by participating in agricultural trade shows and events. This is an effective way to promote your business. Do not forget to create flyers, offer discounts, and connect with people within the farming industry.

The demand for beef in South Africa is very high. The average demand of beef in South Africa is about 1 million tonnes per annum. The beef industry is the second fastest growing commodity in agricultural sector following the broiler poultry sector. This is driven by income growth and support technological and structural change. You can supply your cattle/beef to Abattoirs , Livestock Auctions, Butcheries, Individual, Meat Processors etc.

Beef Carcass

Advantages of Cattle Fattening Business

There are many reasons why you should consider starting a cattle fattening business. The major advantage of feedlots is that the cattle are raised in the most economical way. Since a smaller space of land is required, you can raise a large number of cattle for beef production. Animals that are kept on feedlots are fed mostly corn and/or corn products in addition to being raised on less land. This means you will spend significantly less money. Another advantage to cattle fattening is that you can easily monitor the cattle closely. Furthermore, cattle are fattened earlier, which results in better meat consistency, and more meat can be distributed to meet the rising demand for beef. Cattle are raised for a shorter period of time in order to meet market requirements earlier. You do not have to be concerned about pasture due to droughts or bad weather conditions plus you can easily develop consistent meat quality and quantity by feeding your cattle the correct feed.

Keys to Profitability

When it comes to cattle fattening, it’s all about the right feed and the breed. Make sure that you choose the right supplements, and that your cattle are housed appropriately. Do not overwhelm yourself by buying a large herd of cattle. Start with a reasonable number and grow your business steadily. One of the biggest costs for a farmer is transportation. So ensure that your feedlot is not too far away from the market. Make sure that you keep an eye on the costs and stay up to date with current industry trends.

PRE-WRITTEN BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the beef cattle fattening farming business in South Africa, purchase our beef cattle fattening business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the cattle fattening business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a beef cattle farming business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the beef cattle fattening business plan will lay out all the costs involved in setting up and running the beef cattle farming business. The business plan is designed specifically for the South African market.

USES OF THE BEEF CATTLE PEN FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL)

The beef cattle feedlots business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your beef cattle feedlots business
• As a beef cattle fattening project proposal
• Assessing profitability of the cattle fattening business in South Africa
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Beef cattle fattening guide (Technical Details of how to choose, feed and raise the beef cattle)
• Operational Strategy
• Why some South Africans in the beef cattle farming business fail, so that you can avoid their mistakes
• Ways to raise capital to start your beef cattle fattening farming business in South Africa
• Directory [Contact Details for South African suppliers of feeds, equipment, Cattle Abattoirs, contacts of cattle fattening training companies in South Africa, contacts of cattle fattening farming organisations in South Africa]

The Beef Cattle Fattening Farming Business Plan package consist of 5 files

• Beef Cattle Fattening Business Plan – PDF file (Comprehensive – 87 pages)
• Beef Cattle Fattening Business Plan – Editable Word File (Comprehensive – 87 pages)
• Beef Cattle Fattening Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 45 pages)
• Beef Cattle Fattening Business Plan Automated Financial Statements – (Editable Excel file)
• Cattle Abattoirs in South Africa -Supplementary PDF File

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

GET THE BEEF CATTLE FATTENING BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

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Click  Buy Now  below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/Mastercard then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

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About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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Feedlot Business Plan Sample PDF Example | Free Download Presented by BizMove

Watch This Video Before Starting Your Feedlot Business Plan PDF!

Checklist for Starting a Feedlot Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Feedlot business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here’s Your Free Feedlot Business Plan DOC

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Copy the following link to your browser and save the file to your PC:

https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf

Calculating Break-even for a Given Profit

C:  We can find out what kind of sales B-E needed to make a profit using the formula again. Leaving the other figures the same, let's put in a modest profit - say, 9,000 - and see what sales they needed. The formula now looks like this:

Sales = Fixed Expenses + Variable Costs + Profit.

M:  You just add the desired amount of profit in?

C:  Yes, really it affects the break-even point just like a fixed expense:

S = 19,200 + .70S + 9,000 (desired profit)

10S = 192,000 + 7S + 90,000 (multiple by 10 to eliminate fraction)

3S = 282,000

M:  May I check the figures this time?

C:  Certainly.

M:  All right, let's see:

C:  Convinced?

M:  Yes, I can see how this formula can help you find how much you need to  sell to break even or make a given profit, but what about my problem?

Break-even Analysis for Planning

C:  Break-even analysis is just what you need. It's primarily a planning tool. I've looked at your Income Statement and divided it into fixed and variable costs. As I see it, your cost of sales, which we'll consider as your total variable costs, comes to about 60 percent of sales. Your fixed expenses ran about 60,000. So for last year:

S = 60,000 + .60S

10S = 600,000 + 6S

4S = 600,000

You had to sell only 150,000 worth of merchandise to break even.

M:  As you can see, I sold 200,000 worth, but I didn't make a 50,000  profit.

C:  Right, you made a 20,000 profit just as the bottom line indicates. Remember, you still had those variable costs on sales even after all of your fixed expenses were covered at the 150,000 level.

M:  Oh, I see, it's like this:

S = F + V + Profit

S = 60,000 + .60S = 20,000

10S = 600,000 + 6S + 200,000

4S = 800,000

S = 200,000

C:  Now you've got it. Let's consider your expansion question. How much will  your rent increase?

Using Break-even Analysis to Examine Expansion Feasibility

M:  It would be about 5,000 more. I figure the utilities for the larger space will be 2,000 more than I paid last year. Taxes, the "fixed" ones, I expect to run about 500, I also think I may need to hire another sales person.

C:  Let's say you do. What do you plan to pay?

M:  I'd pay an experienced sales clerk about 9,000. I'm toying with the  idea of instituting a 2 percent commission on sales as an incentive,too.

C:  All right. We know it's not as simple as we'll lay it out, but I think   the analysis will give you an idea of whether or not to explore the   expansion idea more carefully and in greater detail.

M:  Fine

C:  Your fixed expenses will rise by 17,500, if you include hiring another employee. That brings them to 77,500, assuming no other increases from last year's 60,000. For simplicity's sake let's assume your cost of sales (your variable costs) will increase only by the 2 percent commission. That means 62 percent of sales for variable costs. so:

S = 77,500 + .62S

100S = 7,774,000 + 62S (multiplied by 100 to eliminate fraction)

38S = 7,775,000

S = 205,000 (approximately)

M:  Only 5,000 more than I did last year? I can do that easily.

C:  And be 20,000 in profits worse off than last year. Let's put last year's 20,000 profit in - in an expansion you still might want to do at least as well:

S = 77,500 + .62S + 22,000

100S = 7,750,000 + 62S + 2,000,000

38S = 9,750,000

S = 257,000 (approximately)

M:  Hm, that's approximately a 25 percent sales increase just to make the  same profit as last year.

Business Judgment Still Necessary

C:  Do you think you can boost sales by that much? Perhaps you see long range benefits from expansion that justify sacrificing some profit for the short run.

M:  I'm not sure. I'll have to give it more thought, look at the trends in my business and in this area. My pricing policy may need adjustment. Maybe I can cut costs. But now at least I've got a starting point, a dollar figure I can work with and from. Most importantly of all, I have a technique to help me attack my problem and help point me toward a rational decision.

C:  That's what break-even analysis is all about.

Pricing Policies

A word of caution is in order regarding the popular but misunderstood pricing method known as retailers mark-up. Retail mark-up means the amount added to the price of an item to arrive at the retail sales price, either in dollars or as a percentage of the cost.

For example, if a single item costing $8.00 is sold for $12.00 it carries a mark-up of $4.00 or 50 percent. If a group of items costing $6,000 is offered for $10,000, the mark-up is $4,000 or 66.33 percent. While in these illustrations the mark-up percentage appears generally to equal the gross margin percentages, the mark-up is not the same as the gross margin. Adding mark-up to the price merely to simplify pricing will almost always adversely affect profitability.

To demonstrate, assume a manager determines from past records that the business's operating expenses average 29 percent of sales. She decides that she is entitled to a profit of 3 percent. So she prices her goods at a 32 percent gross margin, in order to earn a 3 percent profit after all operating expenses are paid. What she fails to realize, however, is that once the goods are displayed, some may be lost through pilferage. Others may have to be marked down later in order to sell them, or employees may purchase some of them at a discount. Therefore, the total reductions (mark-downs, shortages, discounts) in the sales price realized from selling all the inventory actually add up to an annual average of six percent of total sales. To correctly calculate the necessary mark-up required to yield a 32 percent gross margin, these reductions to inventory must be anticipated and added into its selling price. Using the formula:

To obtain the desired gross margin of 32 percent, therefore, the retailer must initially mark up his inventory by nearly 36 percent.

Pricing Policies and Profitability Goals

Break-Even Analysis and Return on Investment, discussed earlier in this section,  should be reviewed at this time. Remember, all costs (direct and indirect), the break-even point, desired profit, and the methods of calculating sales price from these factors must be thoroughly studied when you establish pricing policies and profitability goals. They should be understood before you offer items for sale because an omission or error in these calculations could make the difference between success and failure.

Selling Strategy

Proper product pricing is only one facet of overall planning for profitability. A second major factor to be determined once costs, break-even point, and profitability goals have been analyzed, is the selling strategy. Three sales planning approaches are used (often concurrently) by businesses to develop final pricing policies, as they strive to compete successfully.

In the first, employed as a short-term strategy in the earliest stages of a business, the owner/manager sells products at such low prices that the business only breaks even (no profit), while trying to attract future steady customers. As volume grows, the owner/manager gradually builds in the profit margin necessary to achieve the targeted Return on Investment.

Evaluate your budget periodically with actual operations figures. With effective records you can accomplish this. Then, where discrepancies show up it is possible to take corrective action before it is too late. The proper decisions for the ideal corrective action will depend upon your understanding of management techniques in purchasing, pricing, selling, selecting and training staff, and handling other management issues. You're thinking you are able to hire a bookkeeper or an Accountant to handle the record keeping for you. Yes, you can. But remember two very important facts: 1. Provide the accountant with true input. If you buy something And do not record the sum in your business checkbook, the accountant can not enter it. Should you sell something for money and don't record it, then the accountant won't understand about it. The records the accountant prepares will probably be no greater than the info that you provide. 2. Utilize the documents to make decisions. If you moved to a physician And he told you you were sick and needed certain medication to get well, you would follow his guidance. Should you pay an accountant and he tells you that your earnings are down this year, do not hide your head in the sand and pretend the issue will go off. It won't. Business Management Roll in Personnel Selection. If your Small Business Will be big enough to require outside help, a significant duty will be the choice and training of one or more workers. You may start out with relatives or business partners that will assist you. But when the business grows - as you hope it will - that the time will come when you have to select and train employees. Careful choice of employees is vital. To select the right Employees determine beforehand what you need each one to do. Then search for applicants to fill these specific needs. In a small Business you may need flexible employees who can shift from task to task as required. Include this in the outline of those tasks you would like to fill. At precisely the exact same time, look ahead and organize your hiring to assure an organization of individuals capable of accomplishing every crucial role. In a retail store, a salesperson might also do stock-keeping or bookkeeping at the outset, but as the business grows you'll need sales people, stock-keepers and bookkeepers. Once the job descriptions are written, line up applicants from whom To make a selection. Don't be swayed by clients who might suggest relatives. In the event the candidate doesn't succeed, you might lose a customer in addition to a worker. Some sources of potential new employees are: 1. Tips by friends, business acquaintances. 2. Employment agencies. 3. Placement agencies of top schools, business schools, and colleges. 4. Trade and industrial institutions. 5. Help-wanted advertisements in local newspapers. Your next job is to display want ad responses and/or program Forms sent by employment agencies. Some applicants will be eliminated sight unseen. For every one of those others, the application form or letter will act as a foundation for the interview that ought to be conducted privately. Put the applicant at ease by describing your company generally and the job in particular. As soon as you have completed this, invite the applicant to speak. Selecting the right person is very important. Ask your questions carefully to learn everything about the applicant that's pertinent to the job. References are crucial, and should be checked prior to making a final decision. Check through a personal visit or a phone call directly to the applicant's immediate previous manager, whenever at all possible. Verify that the information given you is correct. Consider, with judgment, any negative remarks you hear and what is not said. Checking references can bring to light important information Which may help save you money and future inconvenience. Personnel Training. A well-selected employee is only a potential Asset to your organization. Whether or not he or she becomes a true advantage is dependent upon your own training. Remember: To allow sufficient time for instruction. Not to expect too much from The trainee in too short a time. To let the worker learn by doing under real working conditions, with close oversight. To follow along with your training. Examine the worker's performance after he or she has been in work For a time. Re-explain important points and short cuts; bring the employee up to date on new developments and encourage inquiries. Training is a continuous process which becomes excruciating oversight. Personnel Supervision. Supervision is the third crucial of personnel control. Fantastic oversight will lessen the cost of operating your company by cutting down on the amount of employee mistakes. When mistakes are corrected early, employees will find more satisfaction from their jobs and perform better. Motivating Employees. Small businesses sometimes face particular Problems in motivating employees. In a large company, a good employee can see An chance to advance into management. In a small business, You're the management. One thing you Might Wish to consider would be to give good employees a Small share of their proceeds, either via part-ownership or a profit-sharing plan. Somebody Who has a"share of this action" will be more Concerned about helping to make a success of the business.

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