To develop a basic business plan, the following route could be adopted:

Phase A
- Identify the basic sustenance levels at which the members are self-sufficient, in terms of monetary value per head.
- Identify the income-generating activities required to reach the level of self-sustenance.
- for each income-generating activity, identify the inputs, and estimated outputs.
- execute operations to sustain this level over a time-cycle.

Phase B
- repeat all steps of Phase A for sustenance levels PLUS profits of 20% to 50%, or more, over a time cycle.
- if required, include more activities, or increase the scale of operations of existing activities, or both.
- execute operations to sustain these level over a time-cycle.

Keep all actions simple, and easy to understand and execute, by all members. Do not confuse them with complicated business maneouvres.

Vijai

Dear Singh,

Thank you for the brief way forward on developing a basic business plan.

I will come up with a draft for which you will input.

Regards,
Marsha

Hi Marsha,

I have mentioned the broad perspective at a macro-level in my post above.

For the specifics, you must involve all members who will be affected by the business plan, and discuss your draft with them, and further polish it based on their opinions and feedback.

When this stage is achieved, you can then post your draft on this thread for any neighbours to comment on, for further improvement.

In the next stage, you can create a micro-plan which integrates with the macro-plan finalized in the stage above, and again discuss and refine it in consultation with the members of the group who are to be affected by this business plan.

Again post on this thread for neighbours to comment on.

I may or may not be able to contribute on issues at the micro-level, since inputs at this level must necessarily be hardcore specifics, which can only be provided by the active members on the ground in your region.

Vijai

Dear Singh and Neighbours,

Could you look for and provide simple material in relation to crop/ farm production business plans.
We shall use these to come up with a simple business plan relating to farmers growing of cabbage, melon and green pepper.

Marsha

Hello Marsha,

I have provided my views at a macro-level in my earlier 2 posts in this thread. In case you can post here what you propose at a micro-level, it could be examined and discussed by all neighbours.

As I have suggested earlier, a focus on self-sustenance is important, to begin with. You must ask yourself - have all village members reached the level of self-sustenance? If the answer is 'no', then you need to first focus on issues of self-sustenance till this level is achieved by all members.

Business plans need to be worked on only 'after' self-sustenance is achieved by all members of the group.

Vijai

I think the phrase "Business Plan" is a bit ambiguous. A business plan, as a proposal, to take to the bank for a loan, has projectures that try to show that the business is viable and PROFITABLE.
Since this business is already started, what's needed is a Business Action Plan, which will keep the project running and growing. Profits will show up, when they are there. If they don't, then the whole thing must be re-examined to find out where the problem is. Finances must be carefully watched and they will show the way.
The only danger is to project profits and take them before the system is tried and tested. Projections on gross takings might be useful but can't be relied on.
On a farming business like this, with two seasons a year, I wouldn't count any chickens until the crop is harvested, sold, more tools are bought, improvements are made and the next crop is in the ground and doing well. It will be sustainable and profitable, if it's done with patience and common sense. Rick.

--
Rick Ellis

That's right, Rick. Since most farm related activity is risk-prone, with plenty of uncertainties related to weather and other factors, it is wise to pump all earnings back into the business, and the members must keep only the amounts required for self-sustenance. This practice of pumping maximum earnings back into the business may be required till such time that enough resources and infrastructure have been created. Only thereafter must the members think of taking out more profits in addition to self-sustenance needs.

Vijai

Thanks Rick and Singh,

I clearly agree with you. Let me complete a draft for which I will give for your kind input.

Marsha