Friday, 27 April 2012

Steps of starting a farm business

When starting a farm business you need to make up your mind where to begin! Starting a business can be overwhelming as it involves several steps. Start by evaluating the Business Idea using market research. You may think your business idea is genius just because there’s nothing like it in the market , but on the contrary it may be a warning sign that there simply no market for the idea. Before rushing into starting your farm business, you should ensure there are enough customers whom you are targeting will buy your farm products or services. The more you know about your consumers, the better the chances of success of your marketing efforts. This exercise is called market research. 

There are several ideas to help you in the above research. You can hire market research companies or do simple research using the following considerations? Who are your target customers are, their numbers, where they live, their ages, how much money they spend on comparable services / products per week, whom you are competing with, What will make your farm business unique? Make a business plan in order to know how much sales you require to break even and make a profit. The market research will help you determine whether your idea is practical and worthwhile pursuing or not.

A partnership farm business requires a wise choice of co-founders whom you can work well with, whose skills complement yours. Choosing business partners who have a variety of skills is the key to success of a starting a business. This means if you are good at customer service but disorganized when it comes to administration, get a person who is organized with great attention to details for administrative work, while you deal with customer service. Choosing farm Business Structure is the next step. Once your idea is past the market research step, and you’ve decided whether to have co-founders or not, decide on the type of business structure best for your company. If ideally research shows that there is  no need for retail establishment, and you decide execution of your idea is to start from  a home office, you may be able to operate  a sole proprietorship.In this case Choose a private company business structure. However if you have co-founders, consider other forms of Farm business structures, such as partnerships,  a Corporation or a Limited Liability Corporation.