How to build a farming business in SA
Are you building a farming business? From creating a business plan to choosing the right equipment on AgriMag, there is a broad range of steps to take if you want to set up a successful farm. Read our blog post to get a better understanding of what goes into the start-up phase of an agricultural business.
Create a plan
Creating a plan is important for the success of any business. This document includes a strategic plan of how you will implement your business idea. Not only will this document ensure that you have an outline of how you’ll set up your business, it is also required during the fundraising phase. Business plans help you to raise money as well as to make good decisions. They also help you to identify any weaknesses in your business. This document can be used to share your ideas with stakeholders.
Choose the type of farming
Consider what type of farming you want to be involved in. The type of enterprise you set up will depend on your expertise as well as your financial resources. It’s easier to set up a small scale farm if you’re just starting out. The different types of farming include crops, dairy, and livestock. Don’t forget to check the legislation that applies to the type of farming that you choose. You’ll need to know the regulations for the processes and products that you will be involved with. Registering your enterprise with SARS is also essential.
Choose a location
Selecting the right location is an important decision that can impact the viability of your farm. The type of farming business that you plan to set up will influence your choice. You’ll need to select an area that has the right conditions for the crops that you plan to grow. The size of the land is another important factor that needs to be taken into consideration.
Research what equipment is required for the type of farming business you are starting. Make a list of the equipment that you’ll need as the cost of the machinery should be added to your budget. Investing in quality machinery you can rely on is vital as this equipment is important to the success of your business.
Identify training opportunities
Do you have the skills that are required to run a successful farming enterprise? If you identify areas where you lack the knowledge that you need to succeed, look for opportunities to develop your skills. You’ll need business skills, as well as knowledge of the agricultural industry, in order to grow your start-up business.
Understand the market
Before you start your business, you’ll need to understand the market. Consider whether there is a need for the crops that you will be producing and review your competitors to find out what they are offering. Look for factors that could make you stand out from your competition.
From buying land to purchasing equipment, there is a big cost that is associated with setting up a business in the agricultural industry. You’ll need to raise capital before you can start your new venture. One option is to apply for a loan at a financial institute. The Land Bank provides financial support to farmers in under-resourced communities to assist them with becoming part of the agricultural industry. The Land Bank offers small loans on a short, medium or long-term basis. This financial support is normally used for equipment, vehicles, and livestock. Another option is to approach Alliance for a Green Revolution for Africa for extra support.
Now that you know more about how to start a successful farming business, you can look for equipment for sale on AgriMag. With a selection of affordable machinery to choose from, you can get what you need without spending a fortune.