10 Shocking Mistakes People Make When Entering The Farming Space.
1. Building a mansion at the farm.
- you do not need a fancy house when starting your farming enterprise unless you intend to set up an unproductive rural home. Let business lead not comfort and pride to show off on Facebook.
2. Starting big without experience.
- only the grave starts on top, every other thing starts small. Starting small is not a weakness but a strategy. There are too many advantages of starting small.
3. Producing without the market.
- it's safer to 'produce for the market, than to market the produce'. That's one of the advantages of starting small. Let the real customer guide you. The market is your greatest teacher.
4. Working on assumptions.
- untested assumptions are very costly. Never put a big budget on assumptions. Thank me later!
5. Hiring unqualified and nearest people.
- only a fool will entrust an $20k investment in the hands of an uneducated relative or some cheap guy or illiterate couple desperately looking for a place to stay. If farming is a business, then get trained people. Never hire anyone you can't fire! Unless it's urgent avoid relatives! Hire the best you can and don't trust them!
6. Setting too short time frames.
- farming is not a get-rich-quick-scheme. This is the reason many backyard broiler farmers never make any money. Although broilers are ready in 6 weeks, your money is usually ready after 2 years of consistency. Get in with a plan to evaluate at least 3 times in 5 years! Anything less will not give you an informed perspective.
7. Investing in infrastructure without production.
- your business is farming not buildings. Invest in stock not structures. If possible have temporary structures for your goats or chickens. Too many people build structures for $10k and buy stock (like chickens) for $200. Very unwise! Start with the cheapest or free structures but with the best breeds/variety of what you want to grow!
8. Working without a plan.
- where do you intend to take the farming business to in 5, 10 or 50 years. I have a 100 year plan that my children know where they come in. They know that the harvest of my efforts might come during their time and we are ok with it. How big do intend to grow? Which markets are you pursuing, when? How will you know when you get there? ETC.
9. Lack of focus.
- copying what everyone is doing. Changing from time to time! Focus on a few, grow and dominate the sector. Competition is not healthy, seek to control a sector. Have laser focus on a few things. If possible specialize! Be a reference point for one particular thing.
10. Remote farming 🧺
- others call it cellphone farming. Once you decide to farm, be willing to divorce city life. Go to town only to buy buildings and to collect rental money! The master's eye fattens the sheep! Don't come to the farm and talk to your workers from a car and go back. Never come drunk! Have a set of gumboots, overalls and get to see things for yourself. Keep a separate set of records handy! Arrive sometimes unannounced! . Control major points like vaccinations etc.
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