Many feel that starting a farm is one of the most expensive business undertakings available. This is because the land itself is costly, and so much machinery is required to do the job. However, there are many examples of farmers entering the business successfully, with very little funds early on.
There are things you can do right away to minimize costs, using your resources as best as you can. This is what it takes to start a farm on the right foot, without funding.
Avoid Debt If Possible
The most common way of acquiring funds is to go into debt. This should be your last resort, however. The best method is to ensure you have buyers for your products beforehand, allowing you to be paid in advance.
Another option is to use your assets and personal funds as leverage. This is a dangerous path to choose, however, as you might need to be liable with your personal funds, as well. It also means the company will need to be structured specifically with this purpose in mind.
Prepare to Fail
The harsh truth is that as many as half of all companies founded will fail within their first year. This is the case for farms, as well. That’s why a smart small farm owner will have a plan B, just in case they fail within that first crucial year.
It can make things more difficult for the owner, since maintaining both plans will take money and funding away from the other, but it’s the safest and most responsible thing to do.
Target Market
The first step towards any successful business is to identify the target of your work. Once you know who your customers will be, it will be easier to develop the necessary systems for putting produce in front of them. For small farms, this means deciding on who you will sell your produce to.
If you put resources towards a specific market, you’ll use them more productively and gain a chance to play a dominant role in that market.
Employees
Employees are a farm’s most expensive and valuable resource: a company is only as good as those who work for it. However, small family farms often start off with little to no hires at all.
It is possible to work with your own means and rely on the advice from your community. If you hire just one person, begin with an accountant or financial advisor.
Advertise
Failing to advertise is a fatal mistake many small farmers make. This is especially true for those with little to no money, as they believe advertising is a big expense they can live without. However, that expense can be exactly what drives your company forward.
It is possible to do so with minimal investment, relying on social media and word of mouth. Both are either free or inexpensive, and are best used with a clear plan in mind for what you wish to accomplish.
Long Term Partnerships
One way to get into farming without having much cash is to form long-term partnerships with businesses and families in your area. This will allow your produce to be purchased in bulk, giving you more funds to work with.
Keep in mind that there are downsides to forming partnerships as well. You may find yourself depending on businesses outside of your control, and that is sometimes a scary position to be in. It’s important to do research on these commitments early in the process.
Conclusion
Starting a farm need not be expensive–there are ways to cut back on costs without sacrificing the quality of your work or disappointing your customers. However, you’ll need to approach things with a plan, and partners to help you out.