Most of us farmers are working crazy hours in order to keep everything at bay. We end up working at night as much as we do in the day, and as a result, we can still find that we are not only working ourselves into the ground, but we’ve still got extreme expenses. When it comes to overheads, we need to find the best ways to minimize them, how can we do this on the farm?
Taking The Lean Startup Initiative
If you look at the numerous startup companies out there, aim to take inspiration from them and work at minimizing everything. Look at companies that have successfully reduced their costs by taking a leaner approach to things. This could mean using the bare basics in terms of equipment or reducing the amount of staff. Whatever works, if it means a healthier business as a result, and you're not just cutting your nose off to spite your face, you should try it.
The Equipment Enigma
In the farming industry, the big question is to buy or lease. But as equipment can be incredibly expensive, it makes sense, in the short term, to lease. But, if you find yourself expanding more and more, and you are able to put money aside for the long-term, then purchasing is the best option. We find ourselves in a quandary because we don't have the money to invest. But, this is where business loans and specifically farm oriented loans could work in your favor.
Selling The Surplus
As we have an abundance of extras on a farm, we've got to find a way to monetize every single part. Whether it's selling old equipment or taking advantage of the many hay buyers out there, if we're looking to “trim the fat” and reduce our overheads, we need to view everything as a potential for profit. Surplus items aren't just a great way to get a little bit of extra cash, but it puts you in contact with buyers that may be looking for more items in the near future.
Using The Space
A farm isn't just a way to raise livestock, but these days, so many farmers are using their land as a tourist attraction. Because so many farmers are feeling the pinch, this means that we've got to find extra ways to monetize what we've got. A petting farm or an attraction that can make use of the extra land can provide a worthwhile income. The more we harness the potential of our rural landscape, and market it as a way to entice city dwellers, this can be a very good way to earn more money to invest back into the farm.
As the farming industry proves to be more difficult as a worthwhile income, farmers are continually finding ways to earn an extra crust these days. While making the most out of every aspect of the land is beneficial, you still need to plow those profits back into the business. As a way to keep ahead, we've got to minimize are overheads by making the most of everything we own.