When running a business, it is important to keep good books and employ accurate accounting methods. Not only does this help with making budgeting decisions, it is also necessary for tax purposes. However, many people are not as adept at accounting as they could be, due to their inability to understand the complex accounting software on the market. Two businessmen from Michigan noticed this among farmers and decided to start a new company aimed at helping farmers with their accounting tasks.
The two entrepreneurs have just started FarmLogs, which is software specifically aimed at helping farmers keep track of their budgeting, supplies and finances. The two men thought of the idea after growing up in a rural area. They noticed that farmers were using outdated technology for managing their farming businesses.
The company's software program is a Web application that is designed to be easily understood by the average farmer. The program offers tabs for inputting data regarding equipment, cost of seeds and supplies. The software also includes feeds for changes in weather conditions and updates on crop prices in various markets. These tools can assist a farmer in formulating an effective business plan for future operations.
The new business was recently able to secure $1 million in start-up funding. The two entrepreneurs from Michigan were more than likely successful in obtaining the start-up funds by having a strong business plan in place. This is necessary for entrepreneurs to show potential investors or loan managers in order to procure the required funds needed to begin operations of a new company.
Source: Bloomberg Businessweek, " Smart Software Comes to the Farm ," Ashlee Vance, Jan. 31, 2013