6 Tips For Starting An Agribusiness

harvest timeNot all agricultural businesses focus primarily on maintaining land and animals. Agribusinesses are now expanding to interact directly with farmers. More agribusinesses are buying and selling directly with farmers. If you are looking to get into the agriculture business by starting your own company, here are 6 tips to make your business come out on top

Determine What Services & Products You Will Offer

Before you start anything, you should define the products and services that you will provide. This will act as your business plan. In this plan, you should also include the profits you intend to make over a designated amount of time, the supplies you will need to make this happen, the correct licenses you need to make your agribusiness legit, and the proper insurance to cover your new business in the event of accidents or emergencies.

Get Financing

Seek the right form of financing for your agribusiness. Getting a loan from a bank is becoming more and more difficult for new businesses because of the state of our country’s economy. Many alternative financing options are available that will help start your business off on the right foot.

If your business already has incoming and outgoing orders to clients, you may want to consider agriculture factoring. Agriculture factoring will help your business control cash flow in times when you may have more going out than coming in.

Because you are often faced with pending invoices and orders, a factoring company will purchase those contracts to give you an upfront cash advance. This advance will allow you to have better control of your finances and grow your business.

Get The Appropriate Licenses

According to your state, you will need to get specific licenses in order to operate your business. You can find the right paperwork from the Secretary of State’s office. If you plan on doing business with out-of-state farmers, ensure that you complete the correct paperwork for the states in which you will sell in or buy from.

Set Up Your Business On Land

Now that your business exists in the legal sense, it is time to bring it to life on the land you purchased or leased. Establish a physical building that will best suit the purpose of your operations. This will act as a place to house the materials, tools, and machinery that you will need to operate.

Develop a Marketing Plan

Your business is now ready to operate. A marketing plan will allow farmers, suppliers, and others know about your business. Without a solid marketing plan, your business will suffer.

Hire Employees

After you have established a solid marketing plan and are starting to bring in new clients, you should consider hiring employees. Completing orders for your agribusiness is not a one-man job. Get the help you need to make a lasting first impression on your new clients.

Starting your own agribusiness can be stressful on your own. We hope that these 6 tips will help you have more confidence in starting your own agribusiness.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies.He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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