How to run gainful small-scale business without breaking a bank

Presumably, when you purchased the farm, you had some ideas or interests for the farm. It is important that you pursue an enterprise that interests you. If not, the hard work, in sometimes unfavourable conditions, is going to get very tiring.

Despite what you may have heard, bigger is not always better. Large-scale production is not necessary in order to ensure profitability. If anything, over expansion is one of the fastest ways to the "poor house". Efficient, well-planned operations that work within the finances and labour restraints of the operator are going to be profitable whatever the farm size. Select an enterprise that meets the limits of size and financial commitment you set in your long-range plan. Start out small, learn as you go, and try not to place such a debt load on your enterprise that you lose the fun of farming.

Produce labour intensive products. The easy stuff is already being done. Look for high value production on small acreage.

Diversify and experiment. This is how you learn new things. Be daring and flexible.

Locate or develop new market niches. Remember the old saying about the early bird getting the worm.

Don’t market to middlemen. Select an enterprise that allows you to market directly to the consumer. This allows you to keep more of the profits.

Don’t hire outside labour if it can be avoided. Hiring outside labour increases costs and is unreliable. If you need outside labour, pay them a decent wage and plan on keeping them. Don’t get too far in debt.

spreading risk

Diversification is your hedge against drastic changes in the market and the environment. It is basically spreading out your risk. Diversification can be as simple as planting more than one variety of the same crop, or producing multiple types of crops.

Get enterprises that support each other. Manure from the livestock can be used for compost, or fertiliser for the crops and crop residues or excess can be used for the livestock. In cropping operations, diverse crop enterprises help to support the need for crop rotation and soil fertility between different crop plantings.

Source: Successful Small-Scale Farming: An Organic Approach by Karl Schwenke

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