Business Planning/Funding for a small farm

[elentari8]

This is for other farmers out there...

We are starting a small organic farm here in Texas and I'm wondering if anyone has advice on how to do the business plan, where to look for funding, what kinds of things I might want to remember in regards to setting myself up as a business, etc. We're going to be doing direct marketing of mixed vegetables, eggs, small meat animals, milk products, and other value added products as we have time and energy to develope them. Initially we'll market at farmers markets but ultimatly we'd like to have all our customers with our CSA.

Thanks for any advice you've got!

-Annie Blackwell

Little Toad Organic Farm and Gardens
San Antonio/Houston, Texas

[Jodi]

The winter 2005 Heirloom Gardeners magazine has an article in there with a few resources and ideas, "Visiting the Common Ground Country Fair." If you contact any of those resources, they will be most helpful in directing you in the right direction even if you aren't in their area. It is amazing how intertwined things are.

Also, I cannot recall their names, however, if you do a search for Serendipity Inn located in WI. . . www.innseredipity.com I think it is. The people that own the Inn probably would be helpful in giving pointers, suggestions, or pointing you in the right direction. This is what they beleive in.

also check out www.attra.org national sustainable agricultural information service.

I hope this at least helps some. Let us know what you find out if/when you check into any of these items.

[drobinson]

A very informative internet site, "Acres USA," is full of information about organic
farming and gardening, as well as other alternative type information. It is a bit technical, but thorough in coverage, with an extensive listing of topics. Countryside magazine has info on those hardy souls who are trying back to the land homesteading, with tips here and there on making money gardening. Check back issues also. Small Farm is another magazine source. Mother Earth News has lots of help books, (some on making a living organically), and booklets, listed in the ad section, and at reasonable prices. Most areas of the country will have organic farming operations. Ck with your County Extension Office for possibilities. Getting certified as an organic grower, if you are not, may be a hassle, but it could add credibility to your advertising and success. State Agriculture agencies will have info on certification, the laws governing sales of food stuffs, etc. Some states won't let an individual sell home canned goods, without inspection (never mind the fact that we have been eating home canned for many, many years without dyiny). You certainly don't want to set yourself up for a lawsuit over food. Talking to a lawyer about this will scare you to death, but it is a wise thing to do. Don't forget to consider tax issues. Keeping good records of expenses and income is vital to success when tax time comes, as well as assessing how successful you are with your organic projects. There are many reasons small businesses succeed or fail.

[Ofelia Melendez]

Make website for you business and do marketing for it..

[American_Gardener]

Annie.. congratulations on your new business.

I'm starting up a new business myself next Jan. If i can be of any assistance to you i'll be glad to help. First of all what type of business ownership are you looking to have? It will make a difference in how detailed you make your business plan. Most of my experience has been with 501(c)3 and Sub chapter S corporations, but i do recall back in my youth a few businesses i had that were sole proprietorships, partnerships, and limited liablitiy corporations. I might be able to remember some things about those.

Now, I'm guessing.. but most people when they first start a business always go for sole proprietorships. If you're going with that one.. it's gonna be alot harder to get any kind of financing. So, i guess before i can really give you any advice on the Business plan.. i'd need to know more about your dreams of running a business.

Dave

[FritzDaKat]

"If you're going with that one.. it's gonna be alot harder to get any kind of financing."

Anoth4er thing to consider in these economicly uncertain times is to wether or not you really want to rely on any additional 3rd party financing. I mean, hasn't the Small scale American farm faced enough troubles over the past few decades from basing their general operations around being financed by Banks? I mean, look at how many of the small Rural farms are getting consumed by forclosure and consolidated into large factory farming industries run by Corporate interests,,,

2 more cents for the kitty, from the Kat ;)

[American_Gardener]

Very good point Fritz... what i was thinking is investors..Venture capitalists, or Small business asscociation loans, or even community development block grants as sources of financing. All of which with the exception of SBA loans aren't gonna be available to sole proprietorships.

Anyone who knows me knows how set i am against sole proprietorships.. but that's not to say i can't help someone out with one. I do recall a small little business i had when i was sixteen that was doing rototilling for other peoples gardens which i had as a sole proprietorship. In some situations they work just fine... but not something i'd advocate for someone seriously considering large scale sales or operations. As you all know a sole proprietor risks everything they own should a business fail.. house, bank accounts, cars, everything... whereas a corporation is only liable for the amount you have invested in it. And anyone can be a corporation of one. It dosen't have to be some huge board of directors.. the law says you can be everything from secretary to president of the business if you want.

And as a corp. as opposed to a partnership you have your own credit rating should you decide to go for financing.. it's not based on any indivuduals rating good or bad.

Now, i only bring this things up because Annie wanted to know about financing. I totally agree it's better to not go into debt. I don't like debt at all. So, that's why i guess i'd need to know how she is planning to set up the business so that i can tell her her options.

You got the right idea there about a business plan Annie.. alot of people like to skip that step.. but it's like taking a road trip without a map. I can't stress strongly enough how important a good business plan is.

Just i need more info from ya to be able to really give advice... suppose a good place to start would be where do you want to go? If you could get a simple mission statement together first.. it dosen't have to be specific to any ownership set up.. it'd give me a better idea of how to help you with the BP.

Dave