How to Start a Small Farm Business – Started as An Entrepreneur In 2020
Not everyone wishes to become a corporate slave. Some of us still have high hopes of making our American dreams come true. But no doubt you have to work your way up to reach the level of success and prosperity.
However, being stuck in a cubicle will never let that dream come true. Therefore, someday you need to summon up the courage and start your own business to make things work out for yourself as it won't be handed to you.
And if you're willing to take control the steer of your fate, then I suggest you think about starting a small farm business. That's because compared to any other business this is one of the few industries in the USA that has a consistent history of trade export surpluses.
So, it does make a lot of sense to invest in a farm to get yourself started as an entrepreneur. But the question is how to start a small farm business? So, let's dive in to find the answer.
For whom farm business is?
Yes, by spending on a small farm you can make a fortune. However, if you don't believe in the business, it won't be successful, and that's true for every trade. So, you need to be down with the fact that you are going to invest yourself in the industry. I'm not talking about only the investment of money, but your mental state also needs to be there. For someone who truly loves the rural lifestyle, farming can be a rewarding business.
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The person who is ready to raise the crops, look after the cattle and harvest products along with his farmers can make this thing work. But if you don't feel the same and don't enjoy the job, then it can be a disaster. So, in simple terms, only those who enjoy their work usually find success. And if you appreciate the thought of farming, then you are the right guy for the business.
Things to know to start a small farm
You've decided to have your small farm. That's great news, but the problem is the lack of knowledge of yours to run an actual agricultural business. Now, that's where I come in with this guideline to give you a road map to follow. So, if you're all ears then let's just cut the small talk and start with the plan that you need to follow to get your small farm up and running.
Finding the niche
The keyword is here is finding a niche for your farm. As you're going to start small, you can't just go and start doing everything. You need to come up with a plan as there is no room for making errors. So, you need to focus on the agriculture specialty. Now, there are two options. One is to produce crops where you'll be growing fresh vegetables, herbs and all that or there is the other option of raising livestock. So, on your farm, you'll be raising animals and produce products like milk, cheese and all. Plus, selling meats too if possible.
Develop a business plan
Coming with a business plan is essential to get things organized. From the very beginning, you need to on top of everything. And a business module is the way to do so. If you plan to go with the flow, then that is a recipe for disaster as surely the business will crumble into pieces. The man with the plan is the one who survives the toughest of challenges and comes out on top.
Your business plan not only helps you define the operations, start-up and operating expenses, it also works as the road map to show the future profitability in the business. Plus, if you're planning to apply agricultural loans and government subsidies, then a written business plan is something you need to show to the creditors. But it isn't an easy task, to be honest. Don't need to worry as federal agricultural departments of states are always there to assist. Just contact them to get the necessary information.
Having an administrative team
To start a business, you need to have an initial capital. Even for a small farm, the amount will be quite substantial and for obvious reasons, as there are so many things for which you need financing. From the materials and the heavy machinery to distribution, you need money for these expenses and much more. Now, thankfully, you can get financial assistance by qualifying for loans from govt and banks.
But to get the loans approved there is a lot of paperwork need to be done, and it is something you can't do alone. You need to have a business team, and the two main components the team needs is usually a lawyer and an accountant.
A lawyer is the one who will take care of the paperwork for the company. He will do stuff like registering the agricultural business and other necessary paperwork. The lawyer is there to take care of the legal side of the business by making sure you follow state and federal regulations. Then there is the accountant whose job is to help you run a profitable business.
He will do so by establishing bank accounts and payment systems for expenses like hiring staff and other things within a budget. In general, he is in control of the money and also he is the person responsible for doing the taxes too.
Find a plot
To grow crops you need to find the right land. Otherwise, you can end up with barren land, and that's just a nightmare. It is always better to buy existing farmland as all necessary things would be in order, and you would require to make minimal changes. However, if you wish to start from scratch, you can do that too. Now, the question is how to find the right plot to set up the farm project of yours? No need to sweat about it as all you need is a real estate agent specializing in the sale of farmlands.
Do the market research
You need to learn about the market. By that I mean you need to go around and understand what produces people usually look for in the local market. Try to find what customers are buying and which produces they often look for but rarely sees in the market. Doing such survey will help you find the gap in the market, and you can take advantage of it and only focus on specific crops to meet the demand of the customers.
I know many other things should have been part of this how to start a small farm business guideline. But I aimed to get you started with the farm, and the things I've mentioned here are some of the crucial stuff every farm owner needs to know. And I honestly believe if someone follow these steps, then he is already moving towards the right direction.
Now, all he needs is to invest himself entirely in the business. I can guarantee dreams will come true if he genuinely believes in it and work for it.