It’s more and more difficult to get a job or to rely on one for a long period of time. The economic times we are living are more than difficult, and it’s advisable to search for alternative income sources. If you are living in an urban area, the best way to make extra income is to start an online business or to work as a freelancer. However, when living in the countryside the opportunities are countless, you can produce food and supplies the people in the urban areas need.
Selecting the right agricultural business to start is not simple; you have to conduct research and to choose the idea according to your skills. Here is how you can start a profitable agricultural business.
Do research
You can start an agricultural business in numerous fields, from horticulture, to dairy farming and eco-friendly agriculture. The business you start relies not on only on your preferences and skills, but also on the climatic conditions of the geographic area, the size of the land available, the initial cost, and the cost of production. Make sure your business is favoured by the conditions of the area where you live.
Before you start making the business plan, you should try to define the products or services you will provide. Once you have a clear image on what you want to produce, you will be able to determine the profit you have to make for the business to be profitable and the supplies you need to start it. Also, according to the niche of agriculture you choose, you have to get certain licenses, you want your agribusiness to be legit. And don’t forget to check the insurance options you have according to your type of activity.
Create a budget
All businesses require an initial investment, so according to the type of agriculture you want to focus on, you will have to determine the funds you have to invest. You should get in touch with a professional to help you asses the financial needs your business would have. When you create the budget, you have to consider the implementation expenses, the harvesting costs, and the staff salaries. It would be wise to invest in agricultural robots, it may be a larger initial investment, but it would pay for itself in a couple of months. It’s hard to find reliable workforce, especially for an agricultural business, and robots can help you fix this problem.
You should ask experienced farmers for support to approximate your financial needs. They have experience in the industry, they had to make an initial investment when they first started their business, and they can help you make a clear idea. It’s recommended to collaborate with experts to help you create an accurate budget.
Find a funding source
If you don’t have money saved for starting your agribusiness, you have to search for funding. After you identify your financial needs, you can start looking for solutions. Don’t make the mistake to apply for a loan to fund your idea. You should search for a partner if your savings are not enough. Getting a loan comes with the pressure of paying it even during the months when the business is still unproductive.
Most agricultural businesses start producing when harvesting, so you will have no profit until the production moment comes. The best solution would be to ask your friends and family members to join you in the venture. The alternative is to start small, use your savings to fund your start-up and when it generates profit, you can invest the revenue to expand it.
Hire personnel or/and buy industrial robots
You cannot start your business on your own and expect it to generate a huge profit. You can grow plants and deliver products to a few clients; you will gain an extra profit, but not enough to pay all your bills. If you want to start a business to make a living and to gain income, you have to hire experts to help you run the business. You need an accountant, workforce, and marketing staff.
Finding people willing to work in agriculture may prove challenging, so you can start a business that relies on automation. Automation is helpful even during the nursery process, you can use robots to seed, pot and grow plants. If you buy industrial robots for sale they can even handle the fertilisation, irrigation, crop weeding, spraying and harvesting processes.
Agribots are the perfect solution to address the labour shortage most of the farms deal with. Check with the robots provider the type of plants their machines can harvest and care, if they identify with the species you plan to plant, they can ease your work.
Get the needed licenses and certificates
According to where you will start the business, you will need certain certificates and licenses to sell your products. You should get in touch with the local authorities to find the right paperwork. You should register your business before you start producing and selling products. It’s vital for your venture to be approved and recognised. Some of the certificates and licenses have to be renewed on a regular basis, make sure you know what steps you have to follow, your farm to functional accordingly.
Find a piece of land you can exploit
It may prove difficult to complete this task because the price of countryside lands is quite expensive. Depending on the type of agribusiness you plan to start, the size of the piece of land may differ. You will have to do a lot of research to find the right piece of land, and when you’ll find it you have 50% chances it to be available for sale. Don’t lose hope if you cannot buy the land, you may have the possibility to lease it or rent it.
Once you have the piece of land, you have to establish a physical office, one that facilitates business operations. The building will serve as a warehouse for your tools, equipment, materials and other things required for your business to function, but also as an office for welcoming business partners and clients.
