How to Start a Backyard Farming Businesses
According to the Organic Trade Association, sales of organic foods in the United States have skyrocketed over the last 20 years. In 1990, U.S. consumers spent $1 billion on organic foods. In 2010, the total was $26.7 billion. Organic food and beverage sales made up over 4 percent of the total U.S. food market. Much of the organic food supply is produced by small farms that deliver food to local farmer's markets, or accept orders over the internet or on a call-in basis. A backyard farm is a great hobby that can turn into a business.
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Instructions
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Marketing
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Identify your target market. If you are producing herbs in fairly large quantities, restaurants and foodservice companies will be your likely customers. Fresh herbs have a distinct flavor and quality that typically cannot be reproduced in dried, store-bought versions. If you decide to sell organic produce, you may also want to see if there is a local farmer's market where you could sell your produce in person.
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Develop a marketing plan. If you are going to sell organic meats to individuals, you need a way to let them know what you sell. Selling some produce at a farmer's market, while displaying signs advertising that you are also taking orders for meat, is one way to do this.
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Engage in social media marketing. This is a low-cost, powerful way for a small business to advertise. Write a blog about your backyard farming venture. People will read entertaining, useful content and learn about your business at the same time.
Operations
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Map out your backyard area. If you will be growing vegetables, determine the areas of the yard which have the most sun, so that you can plant accordingly. Some plants thrive in the shade, so consider this as well.
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Research zoning or planning requirements. If you are located in a rural area, your property is probably zoned for agricultural use, or it would be a permitted use. If you are in a suburban area, you may need a zoning variance, especially if you are raising livestock. Your city or county government may also require a business license.
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Plan for the seasons. Seasonal cash flow is critical with a farm. Money will be invested one season, and your return on this investment may not come until a later season. If you are growing longer-term crops, like fruit trees, it may even be years before you realize a return on investment. Animals need to be fed, even if they are not generating cash flow at the time. Cash reserves are critical to a backyard farming business.
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Start growing and harvesting as soon as possible. Although planning is important, eventually you will just need to start, even if you start on a small scale. Build on your successes as the farm grows, and continue to plan for the future.
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Tips & Warnings
Farming is hard work. Enlist help with your farming operation, even when it is small, to allow you to devote time to the marketing and sales activities.
