The farming season is here, and you won’t like to miss out this time around on your dream of setting up a farm business. Whether your goal is to have a large farm or small, cultivate crops, livestock, or both, your motivation will go a long way to determine the success rate.
Farming is highly rewarding, and it often comes with some risks and struggles.
When you take farming as just a way of life or a set of activities to while away time, you tend to be indifferent and content with a bit of result, you may be in the middle of your plant life cycle before realizing the soil is gray, deficient in organic matter and rather have heavy calcareous subsoil because you didn’t have things well thought out.
However, when you treat farming as an investment and a way to create wealth, you ensure you tick all boxes to avoid failure or low yield, or even the problem of a non-existent market for your products after all the trouble.
To be business-minded is to be direct and open in your farm pursuit and therefore save your time and efforts from practices that may not be worthwhile. It is to know how to use almost everything in your farm business for profit by calculating return on investment in the background of your thoughts and actions.
If you take on this business mindset to farming and imbibe the basic principles of running a successful business, you may well be on your way to becoming the next big name in the farm business. That being said, a business begins with a plan.
Write Your Farming Business Plan
A farming business plan is not just a document. It is a product of research, market survey and analysis, and other critical preparatory activities for starting a farming operation.
Farming has a lot of uncertainties, but with an adequate plan, you can mitigate the downsides and identify potential risks and rewards ahead.
To start with, you must choose a niche. Good market research will give you a fair shake on the products in demand. Producing goods that there is no market for may take you out of business after the first yield.
Therefore, your plan is your decision-making tool that identifies the farm business goals and how to keep your farming operation on track to achieve those goals.
A business plan does not eliminate the risk in the farm business; you will also need to set out a good farm risk management.
Put An Operational Risk Management into Your Farming Pursuits
Business revolves around the concept of risk, which is no less a factor in the success of a farm. Successful business owners are risk-takers. The only thing that sets them apart from many others is taking calculated risks.
A business-minded farmer must put a plan to protect against the shocks from climate, natural disasters, and the environment. Your ability to manage risks in your farm business and improve your resilience is dependent on your capacity to leverage finance and investment.
Often, this will require that your farm has a corporate and legal status. Register your farm under the appropriate law and plan out your finance and investment portfolio so that you have enough resources to run the farm operations.
Always keep costs in line with revenues. Added to this is to ensure your farm against unforeseen circumstances. As you grow your brand identity, don’t be a lone ranger. Also, remember to buddy up with people who have experience.
Network With Other Farmers and Get a Mentor
Networking is essential for you to get help when you need it. Farming, especially if you are new to it, is not an easy journey to travel all alone. The stress of coordinating the entire farming operations can take a toll on your mental health if you do not have someone to guide you.
Most successful farm business owners have a mentor who provides guidance, motivation, and role modeling. Networking with other farmers will enable you to learn from their experiences.
If you have no experience in farming at all, try to get a hands-on experience from your mentor or the farmers you network with. It will do you well to learn from other people’s mistakes so that you jumpstart your walk to success.
No matter the size at which you initially operate, a long-term plan to scale your farming operations will enable you to stay focused.
Scaling Your Farming Business
One major decision you will have to make in your farm business will border on scaling the business. Scaling involves expanding your marketing channels, production area, or animal numbers to meet marketing demands.
It is good you plan your farm growth and improvement to avoid excessive debts. Your expansion plan should align with your goals which are not cast in stone.
You can always revisit your goals in the light of prevailing reality. You must keep adequate records of your farm performance to decide when it is time to scale.
Expansion of your farm business should not be based on the rule of thumb but on accurate data and research. You will need to know what volume you can consistently produce with quality throughout the season.
Stay Focus On Your Farming Adventure
Focus is very pertinent in your bid to achieve farming objectives and goals. For the success of your farm business, you need the ability to think, reason, make a decision, and solve problems.
Focus implies the ability to devote attention to things that will help your farm business and avoid distractions that will hurt your work efforts. Save time with better farm tools and strategies.
As you position your farm business for remarkable success, set your priorities right to remain on track. Always remember your farm is an investment and that you are on a mission to create values and wealth.
Give it all your best and success is yours!