23 Nov How to Start an Agricultural Business?
The hard economic times in the world have left people looking to alternatives to make income rather than relying on employment. In urban areas, people usually don’t have much of choice than to get employed, begin businesses in the city or work online. However, many have begun realizing the power of agriculture influenced mainly by the demand of agricultural produce in the urban areas.
Choosing the right agricultural business to venture into is not a simple task. You have to do immense research on the needs of every business and choose the most favorable of all. Below are the guidelines for starting an agricultural business:
Research on the specific agricultural field to major on.
There are so many agricultural fields one can major on; poultry, dairy farming, horticulture etc. The field you major on relies on various factors such as climatic conditions, size of land required cost of production or your financial strength. Find a field that will not strain you a lot and is favored by the conditions of the target region.
Determine your needs and budget appropriately.
After choosing the type of agriculture you want to major on, try to do some searching on the needs of the field of agriculture. Create a budget to suit the implementation to the final stage of harvesting to avoid misappropriation of funds. You should consult farmers majoring in your field or experts to have the right approximates of the money you need.
Determine your source of funding.
After making the required budget, you should try and figure out the source of your funding. Most people make the mistake of applying for a business loan to fund the venture. Experts advise people to use savings to start a business. It relieves the pressure of paying a loan after some months while the business has not yet given produce or harvest. You might end up picking loans after loans.
Hire the relevant personnel.
For a successful agriculture business, you can not do everything on your own. You need to hire experts in various fields to help run the business. Some of the people are an accountant to run financial issues, human resource to manage the employment of farm employees and employees. They hold the key to the productivity of your agriculture business.
Look for the appropriate piece of land.
This is the most difficult task today. This is because land prices have appreciated. In some instances, you may not find the desired piece of land. However, you may lease some piece of land through an agent or rent a piece of land to use.
Ensure your employees and business investment.
You should shop for an insurance company to provide you with the appropriate insurance cover such as the workers’ compensation insurance. The insurance is to make your in case of claims, you have someone to sort out.
Register your agriculture business.
The last and important step is to register your new business and obtain the appropriate licenses and permits. This is to make sure that your business is legally recognized and approved. You have to be keen on renewing any renewable permits according to the Laws and Regulations of the State you live in.
Once you do all the above, you can comfortably implement the agriculture business project when your favorable season comes. In our next topic, sugar free baking recipes for diabetics!