A few ideas for the opening of the farming enterprise07.10.2016
Farming enterprise is one of the most promising areas for the investment. But the creation of a farm, just like any business, requires a competent approach. It is easier for those who are experienced in doing business already, while others have to rely on the intuition.
If you plan to create a large farm, be ready for the equally large investments. First thing you have to care of, is the initial capital that has to be enough for the implementation of the idea.
Farm set-up investments
Large farming enterprises are resistant to changes in country’s economic situation, whereas small businesses may fold up being unable to compete. In other words, large enterprise has much bigger chance to survive the most difficult times for business.
If you do not have a large budget, it is possible to open a farm with a narrow focus and gradually expand the scope of its activities as your business develops.
In the first place you should decide what exactly you are going to do: to raise pigs, rabbits, poultry, cattle or grow vegetables.
Oftentimes few members of one family open the farm. It is preferable to distribute the responsibilities to avoid problems in the future, because, on the one hand, the family should help each other and, on the other hand, family and work relationships may not go well together.
The most essential investments required for the farming enterprise set-up:
- Land. The easiest way is to buy a currently operating enterprise and continue its expansion and development. It is preferable to be in a clean area as it will make a positive impact on the quality of your products, and thus, on the reputation.
- Livestock. Primary farming business income depends on the initial number of animals that you are going to raise. The minimum number of pigs – 150, poultry – 500, cattle – 60. If you are planning to grow vegetables or fruits then the income will depend on the land plot area. But even if the area is small you can always begin with a greenhouse.
- Equipment. One should not skimp on the equipment as it directly affects the efficiency of the production. Try to initially set the advanced livestock building equipment, automatic feeding lines, electronic scales, ventilation, water heating system, etc.
Who may help to build up an initial capital?
There are governmental programs that can help to create and develop the farming enterprise. They provide governmental grants and long-term loans at low interest rates. To get the grant one should present his detailed business plan. The solicitation from the local authority will do no harm as well.back to list
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