Posted by Matthew Deutsch on November 28th, 2011 at 02:32am
Here, we will discuss the development of a Chicken Farm SWOT analysis, its development, and how it can be used to acquire financing from a bank or investor. Chicken farms generally are able to remain profitable and cash flow positive in any economic climate due to the fact that they are able to render a service that is in constant demand among the general public. One of the best aspects of a chicken farm is that they are able to generate highly gross margins from their services. A well written Chicken Farm SWOT analysis will feature a strengths section, a weaknesses section, and opportunities discussion, and a threats discussion. Chicken farms are able to generate revenues from two different centers. Foremost, you will be able to generate a highly predicable stream of revenue from the sale of eggs that will be collected on a daily basis. Additionally, you will be able to generate secondary revenues from the sales of chickens that will be going to the slaughter house. It is important to note both of these revenue centers within your business plan as well as your SWOT analysis. One of the other things that you should mention when you are putting together your financial documentation is that you will own a substantial amount of tangible assets including land, chicken coops, and related assets as it pertains to your chicken farm operations. As time progresses, we are going to continue to discuss how you can finance farm based businesses.
Most importantly and first, you are going to want to focus heavily on the strengths that are associated with your chicken farm. Foremost, you should again reiterate the high gross margins generated from your chicken farm services while also showcasing the generally low costs associated with operating this type of business. Another important mention should be the relatively low cost overhead associated with operating this type of business.
Also within the strengths section of the SWOT analysis, you should focus on your abilities to operate this business on a day to day basis, your experience as an entrepreneur, and how you intend to bring the operations of your chicken farm to profitability very quickly.
The next section of the Chicken Farm SWOT analysis focuses significantly on the weaknesses that are associated with this type of business. Foremost, you should heavily discuss the fact that there are many other types of businesses that operate in a similar capacity to your chicken farm. You may also want to discuss the relatively high start up costs that are associated with a chicken farm.
Next, you are going to want to focus significantly on the opportunities that your business will have to expand during its first five years of operation. This may include developing new locations, hiring additional personnel, and engaging in a broad based marketing campaign that will ensure that your chicken farm business is able to rapidly expand and repay its debts on a timely basis.
Finally, you are going to want to effectively showcase to your SBA loan banker or investor the threats that will be faced by your chicken farm. We strongly recommend that you emphasize a number of these issues as it will be to the benefit of your investor or banker to see how you intend to mitigate these risks as time progresses.
As always, we strong recommend that you work closely with a number of professionals including CPAs, attorneys, SBA loan consultants, conventional loan consultants, and other professionals that will ensure that you have produced a Chicken Farm SWOT analysis and business plan that is appropriate for both a bank and a potential investor. It is imperative that you have a clear understanding of the complex nature of raising capital for your venture and by having a number of professionals in place – you will be in an outstanding position to receive the capital you need in order to start your chicken farm.
Tags: Business Plan, Cash Flow, Chicken Coops, Chicken Farm, Chicken Farms, Chickens, Daily Basis, Economic Climate, Eggs, Farm Operations, Finance, Financial Documentation, Focus, Gross Margins, Investor, Slaughter House, Swot Analysis, Tangible Assets
Under SBA Loan SWOT Analysis