Starting a new agribusiness venture is genuinely exciting. You get to be your own boss, spend time outdoors as much as you like, and enjoy great success when your farming business gets off the ground.
However, not every new business owner knows what it takes to start a successful agribusiness. They know even less about how to scale one up. If you’re currently considering moving into the rural sector, here are a few important actions you’ll need to take.
- Make the Right Connections
There’s more to a successful farming operation than having a great team. You must also consider the industry professionals you’ll need to rely on.
For example, vineyard owners need to connect with a trusted grape harvester parts supplier, grape analysis and quality control managers, experts in bottling, logistics, and more. Crop farmers must have trusted businesses to buy seeds from and sell crops to. You are merely one link in the chain.
Make the right connections early on, and establishing yourself in your new business might be much easier than anticipated.
- Think About Crops
Crop farming agribusiness ventures are popular in the United States. They involve choosing one or multiple crops based on profitability and your interests and learning as much about them as possible. Deciding what you want to grow can determine your investment, the equipment you need, and even the land you must buy to produce your desired crops.
While you might opt for traditional crops like wheat and corn, some small agribusiness owners consider the most profitable, including oyster mushrooms, microgreens, Goji berries, and almonds.
- Research Pricing
Agribusiness ventures can be expensive to set up. You must lease or buy land, purchase seeds to grow, obtain licenses to farm legally, and acquire equipment. Staffing costs are also a consideration. You’ll want to consider pricing early on to understand if launching your business and eventually scaling it up is an option. At this point, it’s also worth exploring the various commercial loans you might be eligible to receive.
- Talk to Experts
You probably have a good business idea, but that doesn’t mean you have all the facts. Talk to accountants, lawyers, and even other agribusiness venture owners to receive helpful advice. It also wouldn’t hurt to learn more about industry trends and any forecasted downturns or upturns.
While you might think that speaking to potential suppliers and customers is all you need to do to visualize business success, their opinions aren’t impartial. By contrast, business experts have no financial interest in your plans and can offer objective advice.
- Create a Business Plan
You need more than a dream to start an agribusiness. You need a detailed plan. In fact, it can be hard to secure funding without one. So, you’ll need to create a detailed business plan that will become your roadmap for success.
Farming business plans generally differ from traditional business plans. They can be a set of worksheets or a series of written documents. Whichever option you choose, they must include the following details:
- Business history
- Mission, vision, and goals
- Organization and management
- Marketing information
- Operation details
- Financial information
The U.S. Department of Agriculture website provides a range of farm business plan worksheets you can use to form the foundation of your plan. Once completed, you can use it to apply for an FSA loan.
Starting and scaling up an agribusiness venture can help you enjoy financial freedom and great success. However, these benefits won’t appear without an investment of time and work. Thankfully, you can get the ball rolling by taking the actions above. Hopefully, you’ll soon be scaling up your lucrative rural business.
