Do you want to start an agro tourism company and need to write a plan? If YES, here is a sample agro tourism business plan template & feasibility report.
An agro tourism agency is a good business to start in the United States because, aside from Israel, the United States can boast of having some of the best inventions when it comes to the agricultural industry. As a matter of fact, the united states is among the top destinations for foreigners looking for countries to understudy new breakthroughs in agriculture.
Agro tourism receives massive support from the government because it gives farmers and other stakeholders in the industry opportunity to generate additional income and an avenue for direct marketing of their produce to consumers. Aside from that, agro tourism provides educational opportunities to the public, helps to preserve agricultural lands, and allows states to develop business enterprises.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research.
The next step to follow is to write a good business plan; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services. Below is a sample agro tourism business plan template that will help you write yours with little effort.
A Sample Agro Tourism Business Plan Template
1. Industry Overview
The travel and tourism industry of which agro tourism belongs to is a big and profitable industry in the United States of America and in most developed countries with known breakthroughs in the agriculture industry. Agritourism or agro tourism involves any agriculturally based operation or activity that brings visitors to a farm or ranch especially for the purpose of understudying.
Agro tourism is a booming line of business in the United States. Agro tourists can choose from a wide range of activities that include picking fruits and vegetables, riding horses, tasting honey, learning about wine and cheesemaking, or shopping in farm gift shops and farm stands for local and regional produce or hand-crafted gifts.
According to the USDA Cooperative State, Education and Extension Service, “Tourism is becoming increasingly important to the U.S. economy. A conservative estimate from the Federal Reserve Board in Kansas, based on 2000 data, shows that basic travel and tourism industries accounted for 3.6 percent of all U.S. employment.
Even more telling, data from the travel industry Association of America indicate that 1 out of every 18 people in the U.S. has a job directly resulting from travel expenditures”.
According to the Small Farm Center at the University of California, “Agricultural tourism or agritourism, is one alternative for improving the incomes and potential economic viability of small farms and rural communities. Some forms of agritourism enterprises are well developed in California, including fairs and festivals.
Other possibilities still offer potential for development”. The UC Small Farm Center has developed a California Agritourism Database that “provides visitors and potential entrepreneurs with information about existing agritourism locations throughout the state.
The Tourism industry that agro tourism business is a subset of is a thriving sector of the economy of the United States and the industry generates over $970 billion annually from more than 443,165 tourism companies (strictly agro tourism agencies inclusive) scattered all around the United States of America.
The industry is responsible for the employment of over 5,546,023 people. Experts project the industry to grow at 1.0 percent annual rate. The market for the tourism industry is open to all stakeholders because no tourism agency has the lion market shares in the industry
A recent report published by IBISWorld shows that in the last five years, the Tourism industry has experienced relatively steady growth.
However, despite increasing consumer sentiment, declining unemployment and an increase in the number of trips domestic and international travelers were taking in the United States, revenue growth was sluggish early during the period amid heightened competition and unstable commodity markets.
Nevertheless, consumer spending continued to increase over the past five years, due to rising disposable income and positive consumer sentiment, benefiting industry operators.
Some of the factors that encourage entrepreneurs to start their own agro tourism business could be that the business is easy to set up and the startup capital is indeed affordable; you can actually start your own agro tourism business from a small farm.
But you must ensure that you have things in place or activities that will compel people (tourists) to travel from far and wide to pay to tour your farm.
2. Executive Summary
Frank Tyson® Commercial Farm Settlement, Inc. is a registered commercial farm with strong bias in generating additional income from agro tourism. The farm will be located in a farming community in Steamboat Springs – Colorado.
Frank Tyson® Commercial Farm Settlement, Inc. is a 500 – acre family – owned and operated farm that hosts over 40 attractions and activities for visitors between May and their Harvest Festival in October. Our visitors (tourists) have the opportunity to feed their baby animal addiction by visiting during the Baby Animal Days, or they can can participate in our many festivals, such as the Sunflower Festival.
From activities such as apple cannons and pig races, there are many different opportunities to entertain the entire family all the while learning about farm life. We will also offer agro tourists the chance to work on cattle ranches, and sometimes participate in cattle drives.
We are aware that while revenue and education are often primary drivers for farmers to diversify and invite guests onto their property, we will ensure that safety is always a top priority to us.
Frank Tyson® Commercial Farm Settlement, Inc. is a client-focused and result driven agro tourism business that provides excellent treatment and broad-based experience at an affordable fee that won’t in any way put a hole in the pocket of our clients.
At Frank Tyson® Commercial Farm Settlement, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. Which is why our visitors are greeted with a beautiful building that houses a café and souvenir shop.
We also have in the visitor center area an agriculture-themed escape room and interactive stations for people of all ages to learn about the agriculture industry and our farm, from what farmers do. We will ensure that we hire professionals who are well experienced in the industry.
Frank Tyson® Commercial Farm Settlement, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Frank Tyson® Commercial Farm Settlement, Inc. is founded by Frank Tyson and his immediate family members. He has over 15 years’ experience working at various capacity within the agriculture industry and of course the travel and tour industry in the United States of America.
3. Our Products and Services
Frank Tyson® Commercial Farm Settlement, Inc. is going to offer varieties of services within the scope of the agro tourism line of business in the United States of America. Our intention of starting our agro tourism business is to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals. Our business offerings are listed below;
- Giving visitors (tourists) first hand experience of farm life
- (Accommodation services) – Renting out our agriculture-themed escape room and interactive stations
- Food services and drinking place services
- Donkey, Cart and Horse rental
- Travel agent and tour arrangement services
- Sell our farm produce to visitors (farm market)
4. Our Mission and Vision Statement
- Our vision is to build an agro tourism brand that will become the number one choice for clients who are seeking to visit Steamboat Springs – Colorado or any commercial farms in the United States for the purpose of agro tourism.
- Our mission is to provide the most ideal environment, ambiance and activities that will encourage people to visit our farms.
- We will position the business to become the leading brand in agro tourism in the whole of Steamboat Springs – Colorado, and also to be amongst the top 20 agro tourism destinations in the United States of America within the first 10 years of operation.
Our Business Structure
Frank Tyson® Commercial Farm Settlement, Inc. will build a solid business structure that can support the growth of our business.
We will ensure that we hire competent hands to help us build the business of our dream. The fact that we want to become one of the leading commercial farms that is also engaged in agro tourism in the United States makes it highly necessary to build a well – structured business from the onset.
We will make sure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our member of staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Operating Officer
- General Farm Manager
- Administrator/Accountant
- Cattle Ranch Manager/Supervisor
- Agro Travels and Tours Consultant
- 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
- Responsible for providing direction for the business
- Creating, communicating, and implementing 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
General Farm Manager
- Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
- Supervise other section managers
- Ensure compliance during project executions
- Providing advice on the management of farming activities across all sections
- 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
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily farming activities across the various farming sections.
Agro Travel and Tour Consultant
- Responsible for booking flight tickets, securing transit visas, booking for shuttle buses/taxi cabs, car rentals, hotel bookings amongst many other agro tour services
- Liaise with clients (potential agro tourists) to identify their needs and to ensure customer satisfaction
- Conduct market research, gather information and negotiate contracts prior to closing any deals
- Provide feedback and periodic reports to stakeholders
- Propose ideas to improve provided services and agro tourism quality
- Ensure compliance with insurance, legal, health and safety obligations
- Cooperate with marketing and PR to promote and publicize agro related events
- Conduct pre- and post – agro events evaluations and report on outcomes
- Research market, identify agro tour opportunities and generate interest
Administrator/Accountant
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Responsible for training, evaluation and assessment of employees
- 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 boarding services, breeding services, dairy support services, livestock health services, farrier services, and shearing services et al.
- Work closely with the General Manager to achieve the organizations’ goals and objectives
Sales and Marketing Officer
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- 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
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company especially as it relates to attracting agro tourists from within and outside of the United States of America.
Field Workers
- Serve as tour guides within the farm settlement
- 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
- Carries out task in line with the stated job description
- Handles any other duties as assigned by the farm manager
Client Service Executive/Front Desk Officer
- Welcomes visitors (agro tourists) 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
- 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
- Distribute mails in the organization
- Handles any other duties as assigned by the manager
6. SWOT Analysis
Frank Tyson® Commercial Farm Settlement, Inc. engaged the services of a core professional in the area of business consulting and structuring to assist the firm in building a well – structured agro tourism business that can favorably compete in the industry.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Frank Tyson® Commercial Farm Settlement, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Frank Tyson® Commercial Farm Settlement, Inc.;
- Strength:
The fact that we have a standard commercial farm, with vast land and facilities that will meet the needs of visitors (agro tourists) from within and outside the United States and also good working relation with travel and tour agencies gives us edge over our competitors.
We have a team that can go all the way to give our visitors value for their money; a team that are trained and equipped to pay attention to details when executing their jobs. We are well positioned and we know we will attract loads of visitors (agro tourists) from the first day we open our facility to visitors.
- Weakness:
As a new agro tourism business, it might take some time for our organization to break into the market and gain acceptance especially from corporate clients who are looking for highly mechanized farms to visit; that is perhaps our major weakness.
- Opportunities:
This industry relies on the number of domestic day trips and overnight stays. The more consumers travel domestically, the more likely they are to spend on tourism-related activities. Domestic trips by US residents are expected to increase in the coming year, presenting a potential opportunity for the industry.
- Threat:
Outbound US resident travel results in a loss of potential revenue to the local industry due to purchases made overseas. However, some industry segments such as international airlines and travel agents, may still receive income from bookings. International trips by US residents are expected to increase in the coming year, posing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
In recent time, agro tourism has become a necessary means for many small farms’ survival. By diversifying business operations, farm operators are able to ensure a more stable income. This is because agritourism activities can occur during times of the year that crops may not be in season, and they provide a completely separate stream of income.
Some studies have found that agritourism operations often benefit their surrounding communities by drawing tourists to the area. The economic boost by the increase in traffic can be beneficial to rural areas in need of diversified streams of income.
The agro tourism line of business is in a continuous state of evolution and as such, ground breaking strategies and ideas that are once highly successful are no longer as productive as they were in time past.
Close observation of the trend in the industry reveals that the past few years has seen the rise and proliferation of social media and new tech tools. The trend also extends to increased attention paid to engagement and new market segments, adopting eco-friendly measures and sustainability when planning agro tours events.
As a matter of fact, social media has now become one of the most important tools agro tours agencies leverage on to disseminate information about their events, interact with clients, solicit feedback, and create year-round engagement with their target audience. Furthermore, new software apps and emerging technology have made it easier for agro tours agencies to gather all the needed data and information that will help them plan and project for the future.
Lastly, people have become more interested in how their food is produced. They want to meet farmers and processors and talk with them about what goes into food production.
For many people who visit farms, especially children, the visit marks the first time they see the source of their food, be it a dairy cow, an ear of corn growing in a field, or an apple they can pick right off a tree. Farmers and ranchers use this interest to develop traffic at their farm or ranch.
8. Our Target Market
The market for agro tourism is usually divided into two groups; those who are looking to understudy a farm and the processes that are involved in the farm especially as it relates to farming techniques and of course those who are just looking for a farm settlement to tour and engage in fun-filled activities.
These groups of people cut across different divides in the community. In essence we will ensure we position our business to attract the following visitors (agro tourists);
- Schools
- International tourists
- Family and household
- Newly wedded couples
- Research institutions
Our Competitive Advantage
The level of competition in the agro tourism line of business depends largely on the location of the business and of course the capacity of your farm especially as it relates to the activities and facilities you have on ground. If you can successfully create a unique brand identity for your agro tourism business or carve out a unique market, you are likely going to experience less competition.
For instance, if you are one of the few agro tourism farms in your location that owns a farm – themed guest house, you are sure going to be making monopolize the market. Frank Tyson® Commercial Farm Settlement, Inc. might be a new entrant into the industry in the United States of America, but the management staffs and owners of the business are considered gurus.
They are people who are core professionals and licensed and highly qualified agro travels and tours experts in the United States. Our farm, varieties of activities, our facilities are what agro tourists will pay to visit. These are part of what will count as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Frank Tyson® Commercial Farm Settlement, Inc. is established with the aim of maximizing profits in the business and we are going to ensure that we do all it takes to attract clients on a regular basis. Frank Tyson® Commercial Farm Settlement, Inc. will generate income by offering the following agro related services;
- Giving visitors (tourists) first hand experience of farm life
- (Accommodation services) – Renting out our agriculture-themed escape room and interactive stations
- Food and drinking service
- Donkey, Cart and Horse rental
- Travel and tour arrangement services
- Sell our farm produce to visitors (farm market)
10. Sales Forecast
One thing is certain, there would always be individuals, families and corporate organizations who would travel on a daily basis within the United States and to other parts of the world basically for agro tourism.
We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond.
We have been able to examine the agro travel and tour market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Frank Tyson® Commercial Farm Settlement, Inc., it is based on the location of our business and the wide range of agro services that we will be offering;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same agro tourism activities as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions amongst commercial farms that are also engaged in agro tourism in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.
Our sales and marketing team will be recruited base on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization.
We will also ensure that our excellent job deliveries speak for us in the marketplace; we want to build a standard agro tourism business that will leverage on word of mouth advertisement from satisfied clients. Frank Tyson® Commercial Farm Settlement, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters alongside our brochure to corporate organizations, schools, travel and tour agencies, households and key stake holders in all around the globe.
- Advertise our business in relevant agro and travels and tours magazines, newspapers, TV stations, and radio station.
- List our business on yellow pages ads (local directories)
- Attend relevant international and local agro travel and tours expos, seminars, and business fairs et al
- Create different packages for different category of visitors (tourists) in order to work with their budgets and still deliver quality experience and services to them when they tour our farms
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the industry by storm which is why we have made provisions for effective publicity and advertisement of our agro tourism business.
Below are the platforms we intend to leverage on to promote and advertise Frank Tyson® Commercial Farm Settlement, Inc.;
- Place adverts on both print (international agro and travels – based 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 brand
- Install our Billboards in strategic locations all around Steamboat Springs – Colorado.
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
12. Our Pricing Strategy
At Frank Tyson® Commercial Farm Settlement, Inc. we will keep our fees below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to some clients, nonprofits, cooperatives, and small social enterprises seeking to visit our farm settlement.
- Payment Options
The payment policy adopted by Frank Tyson® Commercial Farm Settlement, Inc. 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 Frank Tyson® Commercial Farm Settlement, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for all our services and accommodation without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Below are some of the basic areas we will spend our startup capital in setting up our commercial farms and agro tourism business;
- 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 needed for the construction and furnishing of farm settlement lodges / accommodation – $200,000
- 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 $750,000 to start a standard agro tourism business in the United States of America.
Generating Funds/Startup Capital for Frank Tyson® Commercial Farm Settlement, Inc.
Frank Tyson® Commercial Farm Settlement, Inc. is a private registered business that is owned and financed by Mr. Frank Tyson and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $150,000 and soft loan from family members $100,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Frank Tyson® Commercial Farm Settlement, Inc. 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 offer our agro tourism services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Frank Tyson® Commercial Farm Settlement, Inc. 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 company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
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: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Purchasing of farm land and construction of farm settlement accommodation: In Progress
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Packaging and 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 travels and tours agencies, institutions, vendors and key players in the industry: In Progress