Cows are a critical component in the dairy business.
Owning a dairy business is hard work and start-up costs can be substantial, but opportunities to earn high profits also exist, attracting many ambitious entrepreneurs. A dairy business can include milk and milk-related products such as organic milk, cheese and creams. Many who venture out on their own struggle at first, but you can take steps to minimize risk and ensure your dairy business is successful.
Instructions
1. Create a comprehensive and well-written business plan. A business plan should be a work in progress. That's because your business will evolve over time and be influenced by outside factors such as the economy and local conditions, according to SBA.gov. When writing your plan be sure to include an executive summary, market analysis, service and company description. Be sure to include the unique features of your dairy business and of any products you might be selling to the public. A detailed plan should help you decide where to locate your business, how much money is needed to start, and opportunities for future growth.
2. Obtain suitable land and high-quality livestock. Purchase between fifty to one-hundred cows, depending on the size on your operation. Cows are the core component of your dairy operation. Ensure they are healthy and productive. Poor-producing cows, although cheaper, will be more expensive in the long run due to lost profits and diminished returns. If your budget does not let you to buy the land, rent it. You can also minimize debt by purchasing used equipment online and at government auctions.
3. Acquire the necessary equipment, supplies and tools to get your dairy business operational. Having a tractor, combine and hay baler are necessities in the dairy business. Storage buildings and milking equipment will also be required to thrive in this industry. An automated milking system can drastically reduce the time it takes to produce milk from your cows, allowing you to complete other tasks. Cows can consume several pounds of food each. They feed, primarily, on corn, grain and grass. You can grow your own feed or buy it from a neighboring farmer, depending on price.
4. Research and analyze the local dairy market. Understand your clients, competitors, and economic factors which can impact your business. Join the Dairy Business Association (DBA) and learn all you can about the industry. Membership dues for dairy farmers start at seventy-five cents per mature animal in your herd, for the first year. Read and study online publications such as Dairy Business.com. This can help increase your chances of success though increased awareness and learning.
5. Promote your dairy business. Outline a marketing plan to help you gain exposure to consumers, and follow through on it. For customers to buy your products, they first need to know you exist. Create a user-friendly website. For many businesses, a website is the first way that your clientele will look at you--even if it's just to find your address and phone number, according to Forbes.com. Get involved with local dairy industry functions, conventions and meetings. This will also help establish your business with potential customers.
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