Thursday, October 20, 2011
Farm Business Ideas
Ideas for farm business are really based on a case-by-case basis, for the most part. Each farm is different, and everyone's skills are different, as well. Part of it does consist of knowing the market, the area you're located in, and your farm. But there's more to it, which may require a little bit of creativity and you should be willing to learn something new.
To start up a new farm business, you don't necessarily need a big family with a rich uncle, a government grant, a big line of machinery, a lot of cash, or a pickup truck. What you do need is to be open-minded to different ideas, patience, time (to plan, analyze, and maybe re-plan), and to communicate (with lenders and others when problems are still small and manageable).
You need to start with a plan. First, and foremost, this plan has to have all the details, which you need to stick to. Include in your plan the financial projections, present financial information, marketing plan, competing strategies, market analysis, business description, and mission statement.
Next you need to establish the farm as a business entity that is legal. You'll have to file required forms with your local government which includes permits and licenses. Then you will want to set up an accounting system (most likely with the use of a computer). Once you have all of those preliminary aspects set up, the real fun starts.
You'll have to find farm land that you can purchase or lease. This will be based on the business model from the plan you previously made. Then you can start purchased the necessary tools and equipment that will be needed to get the farm work done. To stick to your plan and and save you money, try to find the best deals on the materials you'll need. After that, start your marketing.
Some things that may factor into a rise of success is having good communication skills, being frugal, having family close by (for support and help), keeping good records, and having multiple sources of capital.
Some common causes of people not succeeding include communication breakdowns, buying toys instead of paying bills, high amounts of illness and death in livestock, poor record-keeping, and poor work habits.
Keep up with your finances! Keep track with a balance sheet, income statements, and statement of cash flow (where money comes from, where it goes, and what sticks). To increase profitability, reduced overhead costs, improve gross margin (get more for your milk, etc), and increase asset turnover.
Those are the basics to getting any farm up and running, but if you want more specifics for your personal type of farm, go here. That is a website with a long list of what to do if you want a certain farm (poultry farm, organic meat farm, worm farm, turtle farm, deer farm, etc.). It also has tips on how to do certain things most farmers would, at some point, be doing, like how to clear land for farming, building a farm gate, and building a farm pond.
Good luck, and most importantly have fun on this new business venture!