This five-step guide helps practitioners and project managers improve rural livelihoods by creating or improving business models for sustainable agricultural mechanization for smallholder farmers. The most common business models in rural communities include: mechanization hire services, mechanized value addition of food products, leasing, maintenance and repair services, and manufacturing. The five steps have methods, tools, and practical examples as follows: Step 1 - identify mechanization needs and market demand in the community. It describes a participatory and problem-solving approach by using a combination of focus group discussions, one-on-one interviews, and a set of guiding questions.Step 2 - analyse mechanization business models. By adapting the tool, business model canvas, to promote sustainable agricultural mechanization. It also contains guiding questions to assess the benefits, costs, and risks of the different business models farmers and entrepreneurs will work with.Step 3 - select the right size of machinery and equipment. It presents the minimum information required to select the right size of the machinery and equipment. It also underlines that different sizes of machinery coexist in the same community.Step 4 - build partnerships and collaboration. It illustrates the collaboration between private and public institutions, and civil society to organize training, mobilize resources, and influence policies.Step 5 - improve collective know-how. It highlights the importance of collective know-how by describing different stakeholders working on sustainable agricultural mechanization, their roles, skills, and training required to advance the creation of business models.