Farm Ranch Business | Animal Breeders | Animal Services
Running a Successful Farm Business
Every Business has Two Parts
As with all businesses, farm businesses involve two parts. First, is the skill or service that the business offers such as breeding animals or selling animal products such as eggs. Second, is the business side of the business that involves marketing, planning, financial statements, cash flow, and risk management.
Running a business is not easy. It is not enough to be the best at your skill or service, you must be able to get new customers and keep existing customers through an effective marketing plan using a website and social media. Without sales, there is no business.
Marketing Your Farm Business
Your farm business depends on attracting and keeping customers, yet many new businesses fail at this very basic concept. Failure to constantly promote your business through effective marketing techniques will result in the failure of your business.
There are many ways to market without expensive advertising and you should be aware of these methods. One of the cheapest and easiest marketing tools is Social Media.
One of the best sources of marketing is social media such as Facebook, Twitter, and Instagram. You can establish a Facebook page in minutes and put all the information about your business on your page. People will find you when they search on the internet and the pictures and information on your page will be your advertising.
Start with Facebook and move onto Twitter and Instagram as you grow and maybe even a website with even more sales tools.
Keeping the Books
What used to be a time consuming chore has now been largely mechanized with computer software either on your own computer or on the Internet. The software can provide trend lines and graphs that can help the farmer see where money is coming in and going out. The trend lines can give a solid history while projecting finances into the future. What the software cannot do is to predict disasters both weather and economic. Thus the importance of putting funds aside for a rainy day.
As the main employee of your business, you must pay yourself a living wage. If your business income does not allow you to do this, you don't have a business and you should go to work for someone else so you can meet your personal financial obligations.
Most people have personal financial obligations in addition to business financial obligations. You cannot ignore your personal financial obligations in favor of your business obligations. Each should be kept separate so you can budget for both and see the results of your business. The IRS also frowns upon the comingling of personal and business funds and finances.
Because of the need to support themselves, many entrepreneurs start on a part time basis, holding down a full time job while building a new business as a side hustle. Once the side business produces enough income to have the potential to support them, they then move into the business full time. In some cases, the entrepreneur realizes the business does not have enough potential or doesn't provide the kind of satisfaction anticipated. As a side hustle, it is much easier to change course.
Have a Plan
The purpose of these pages is to help you be a successful business person, not to teach you equine professional skills. You should have those skills before going into business.
First, you will need a business plan. The SBA provides a very useful tool for building a business plan. The process of building a business plan is hard work, but having your business fail is even harder work. Start with a sound plan and you will have a much better chance of succeeding.
What You Should Know About Running a Business