Cattle Farming Business Plan Template
If you want to start a Cattle Farming business or expand your current Cattle Farming business, you need a business plan.
The following Cattle Farming business plan template gives you the key elements to include in a winning business plan. The template can be used for a beef cattle business plan, a livestock business plan or any other cattle farming business plan.
Cattle Farming Business Plan Example
I. Executive Summary
Business Overview
[Company Name], located in [insert location here], is a registered and licensed cattle farming company. The Company provides quality meats and milk products to local residents, wholesalers and retailers. The Company raises their animals in an all-natural environment- no antibiotics, hormones, steroids and all animals are grass-fed.
Products Served
[Company Name] will be involved in the commercial breeding of cows to provide the following products:
- Ground Beef
- Steaks
- Ribs
- Roasts
- Milk
Customer Focus
[Company Name] will primarily serve local residents and retailers of dairy products, cattle, and meat within a 100-mile radius of the farm. The demographics of the target customer profile is as follows:
- 152,313 residents
- Average income of $65,000
- 15,000+ retailers
Management Team
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a cattle farm operations manager for the past [xx] years.
[Company name] will also employ an experienced sales executive to sell to wholesalers and retailers in the 100-mile area. This will be a skilled salesperson trained in farm sales by [Founder’s Name]. An assistant manager will manage the day-to-day operations of the farm.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for meat and milk products in the community. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the products, supporting the business after launch.
- The Company has healthy relationships with loads of major players in the industry.
- The management team has a track record of success in the cattle farming business.
- The cattle farming business is a proven business and has succeeded in communities throughout the US.
Financial Highlights
[Company Name] is currently seeking $400,000 to start the company. Specifically, these funds will be used as follows:
- Land and Equipment: $250,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [insert location here], is a new, independent cattle farming company focusing on catering to the needs of the local residents and retailers of dairy products, cattle, and meat. The Company raises their animals in an all-natural environment- no antibiotics, hormones, steroids and all animals are grass-fed. [Company Name] is also fully equipped with the latest technology and equipment used in the cattle farming industry.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for cattle farming who seeks to contribute to the growing US economy through cattle farming. [Company Name] will become a recognized cattle farming company in [Location], ensuring a continuous supply of cattle, milk, meat, and other dairy products.
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for a commercial cattle farm.
Since incorporation, the company has achieved the following milestones:
- Found a business location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Determined supply requirements
- Began recruiting key employees
[Company Name]’s Products
The Company will provide the following products:
- Ground Beef
- Steaks
- Ribs
- Roasts
- Milk
III. Industry Analysis
[Company Name] competes against large-scale cattle farmers in the U.S. With the largest fed-cattle industry in the world, the United States is also the world’s largest producer of beef, primarily high-quality, grain-fed beef for domestic and export use. Beef cattle production in the US is a $66 billion industry, making it the 2nd largest agriculture industry. The market size of the Beef Cattle Production industry is expected to increase by 4.5% over the next five years.
Improving the living standards of the people in the country has resulted in a shift in meat preferences, with most choosing beef-based products rather than products derived from pork and chicken.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will primarily serve local residents and retailers of dairy products and meat within a 100-mile radius of the farm. These businesses typically gross from $5 million to $10 million in annual revenues and source their supplies from within a 100-mile radius of their facilities.
The precise demographics of the town in which the business resides is as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
V. Competitive Analysis
Direct & Indirect Competitors
Shayla Farms
Shayla Farms is one of the large-scale cattle farms in the US, owning an 8,000 ha area. It has well-established relationships with local retailers. It has been in business for 32 years. Shayla Farms offers good quality dairy products and meat. It also has automated equipment and machines, which helps in improving its operations. Moreover, it is also known for delivering large orders at the right time without delay.
Crimson Cattle Farm
Crimson Cattle Farm has been operating since 1995 and is a well-known company that provides good quality beef with affordable pricing as it has effective and efficient cattle rearing machines. It majorly targets local companies and retailers and has a large distribution network that can serve customers up to a 500-mile radius. Crimson Cattle Farm also has a very effective distribution and supply chain network. However, Crimson Cattle Farm’s offerings are only limited to beef.
Cattle USA
Cattle USA has been in business for the past [xx] years and enjoys great success. It is one of the largest beef producers in the 200-mile area. It easily caters to local residents primarily due to its prime location. It provides beef and a variety of dairy products including: cheese, yogurt, meat and milk.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The Company’s management team has years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, media, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
- Quality products at affordable pricing: The Company will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.
- Good Packaging: [Company Name] will utilize product-oriented packaging materials that can reduce the damage in the products at the time of supply.
- Suitable Working Conditions: [Company Name] also ensures that the entire workforce is provided with the best work conditions necessary for optimal functioning.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the cattle farming industry. Customers can expect high-quality products with affordable pricing and excellent packaging.
The [Company Name] brand will focus on the Company’s unique value proposition:
- Efficient and Effective Delivery network
- Good Packaging
- Quality products at affordable pricing
- Providing excellent customer service and customer experiences
- Suitable working conditions
Promotions Strategy
[Company Name] expects its target market to be local residents and retailers of dairy products, cattle and meat in the 100-mile area. The Company’s promotions strategy to reach the audience includes:
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like television stations, radio shows, etc.
Social Media Marketing
Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms and technologies of cattle farming and post customer reviews that will increase audience awareness and loyalty.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the products. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.
VII. Operations Plan
Functional Roles
The assistant manager will run the day-to-day operations of the farm, including scheduling and assigning the work of farm hands, sourcing and purchasing supplies and basic equipment, keeping the company’s books, maintaining legal licenses, handling insurance and insuring that the company meets government regulations. He will contact specialists for equipment repairs when needed and veterinarians to care for the cows when they require medical attention.
Field work by the farm hands will be from sunrise to sunset, with indoor work during the hottest parts of the day and after dark. Field work will include preparing fields for planting, the planting process, tending to planted fields, harvesting, and packaging grain into bushels. Work with the cows will include feeding, taking them in and out of the pasture, and running the milking equipment. It will also include slaughtering and dressing the cows for beef.
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [First name] has been a cattle farm operations manager for the past xx years.
[First name] is intimately familiar with the operations requirements for a cattle farm producing the same products as [Company Name].
[Founder] has an in-depth knowledge of the cattle farming business, including:
- Supply chain management
- Brand management
- Refinement management
- Team Building
- Employee Retention
[Company name] will also employ an assistant manager to manage operations. This will be an experienced operations manager who will be trained in cattle farm operations by [Founder’s Name]. Furthermore, a sales manager will be hired to focus on marketing, sales, and customer service to distributors, and manufacturers for [Company Name] products. These two individuals will either have undergraduate business degrees or years of relevant operations or sales experience.
Hiring Plan
[Founder] will serve as the CEO. To launch the cattle farm, the company will need to hire the following personnel:
- Farmhands [Number]
- Logistics and Supply Chain Manager [Number]
- Assistant Manager [Number]
- Sales Executive [Number]
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the sales of dairy products, cattle and meat to its customers. The major costs for the company will be the cost of land and equipment. The staff will earn competitive salaries allowing [Company Name] to hire experienced workers. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $400,000 to launch its company. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Land and Equipment: $250,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Revenue Stream | % of Revenue |
|---|---|
| Milk | 52% |
| Beef | 9% |
| Cheese | 24% |
| Butter | 15% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
