So you have settled on the idea of launching an agricultural enterprise. You most likely have a great number of questions about your farming business…
- Who do I sell to?
- Which types of crops should I cultivate?
- How should I set the price for my crops?
In this piece, we will discuss these questions, offer a few suggestions for determining the answers to these questions.
Your USP (unique selling point) of your farming business
You must be capable of articulately explaining the worth of your product, such as the following examples:
- Being a hyper-local business: the product you bring will be at its peak of freshness and nutrients because you are located near to the consumer and can thus offer same-day or next-day delivery.
- Clean, free of pesticides, and risk-free for food consumption: Not only are your products free of pesticides, herbicides, and waxes, but they are also risk-free for food consumption.
- Harvesting and delivering vegetables on the same day eliminates the one to two weeks the product would normally spend travelling. You provide products to consumers at its peak with your farming business, which allows them to remain fresher for longer.
- Year-Round Produce that is always of a very high quality, regardless of the season in which it is sold.
- Grow unique crops, the likes of which buyers will not be able to obtain anywhere else, including flavour profiles and types.
Make the most of your resources.
Your customer base is also your community. Get out there and talk to the many local companies in your region that can benefit from having access to local produce all 365 days of the year.
The sooner you start talking with potential consumers about your farming business, the sooner you will have a solid feel of which crops are in great demand, volume needs, local produce costs, and other relevant information. You can use this information to help construct your company’s strategy.
Think about your capabilities in terms of both operations and finances.
Each of these client channels, as well as others, has the potential to provide a substantial amount of success and satisfaction. Even if one of your buyers backs out of the deal, you will still have a reliable client base if you sell your product through various distribution channels.
This will allow you to sell all of your produce each week. Nevertheless, when you develop your farming business, you need to be careful to take into consideration the resources needed by each of these different types of customers.
This covers financial and operational resources, such as the amount of time spent packaging, driving, delivering, and searching for clients (like packaging, silage wrap, printed materials, and farmers’ market fees).
Before being connected with a certain type of customer, it is vital to clearly understand what you are prepared to commit to ease the bumps in the road you may have later on.