Agriculture Reference
In-Depth Information
18
Business Plan, Production Enterprise,
and Marketing Strategy
S.G. Solaiman , PhD, PAS ; E. Kebede , PhD ; and E.M. Aviki , MBA
KEY TERMS
Enterprise—a unit of economic organization or activity.
Business plan—a guide to help defi ne business goals and how to achieve them.
Enterprise budget—a list of values including income, operation cost, and possible profi t or loss associated with an
enterprise.
Subsistence production—a system of production for self consumption but not for market.
Marketing—the activity and processes of communicating, delivering, and exchanging products or services that have
value for customers, clients, partners, and society at large.
Marketing channels—set of interdependent units involved in the process of making a product or service available to
customers.
OBJECTIVES
By completing this chapter, the reader will acquire knowledge on:
•
Importance of a business plan
•
Business records
•
Management records
•
Structure of enterprise budget
•
Enterprise budget for different goat operations
•
Nature of variable costs
•
Nature of fi xed costs
•
Subsistence goat production
•
Marketing channels for goat products
INTRODUCTION
Goat production as a sole enterprise or specialty enterprise
can be integrated into conventional small-scale operations
and support sustainability of family farms in the U.S. or
globally. Goats are highly adaptable animals and can be
raised on a variety of forage, forbs, and browse under
various environmental conditions. Given the variety of
methods associated with goat production, proper planning
and clear operational objectives coupled with correct man-
agement decisions can ensure successful operation. An
enterprise budget analysis can be used to determine profi t-
ability and return to risk and management. It is also impor-
tant to consider market structure and marketing channels
for meat, milk, fi ber, and skin in order to determine which
products will generate profi t and lead to long-term sustain-
ability of the goat operation. In some areas of the world,
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