It’s well known that those who run a farm or a ranch are serious, risk-taking business people who aren’t afraid to try something new. Running a farm, no matter the size, is a tough, busy job. When starting a small farm business, it’s important to have a solid business plan with a strong growth strategy. Growing your business isn’t just about profit, but about expanding on your success and allowing yourself room for more of it.
A growth strategy for a farm can include any one of the following reasons: capacity expansion, diversifying and modernising the farm you have. If you are running a small ranch, the checking out bigger options with companies like can venturewestranches.com really could help you with capacity expansion. With this option, your farm could expand the current enterprise, meaning you have more acres for livestock and crops. What you are doing with your farm right now could be extremely profitable for you, so having a ‘more of the same’ outlook for the future can mean you are running your farm how you want to, but just with more of it!
Diversifying a farm or ranch is another of the most popular ways of expanding. Some farms and ranches need that breath of fresh air and horizontal expansion like this isn’t just about making more from the existing enterprise, but by adding new ones. The downside here is that management of the farm is more spread out over more enterprises, but it does mean that you can evolve the farm you initially planned. Small farms should always aim to grow as a company and if possible, diversify. This kind of evolution can be profitable for a farm and can bring in more clients and customers, which is exactly what owners want.
Some farmers are perfectly content by the level of work that is being produced on a daily basis, so modernising the facilities and the machinery that is already in use is the next step. More assets can be used and therefore an increase in production is on the cards. This is far more common in livestock production than it is in crops, but it still can be done for crop farmers. There are a lot of considerations when it comes to expanding things on your ranch or farm. It’s important to do your homework when it comes to growth and if it isn’t something you’ve included in your business plan, then you definitely need a rethink of your business.
Before you go ahead and expand, always check the local laws and get any planning permission that is necessary. Check out the environmental impact on your plans, as well, so that you can be mindful of the surrounding businesses and communities to your farm. Protecting the environment as you grow your ranch or farm should be a priority for you. Make sure your insurances will cover you for growth, and if you need to hire in more staff to work with you start that early so that things can move seamlessly as expansion is complete.