1. Draft a plan; define objectives, strategies and boundaries to
your operation that all agree to. Also have the flexibility to adjust or jettison portions once you
realize that a particular thing ain't working. Is your plan just to feed your family - then skip to #10 (or 11). Do you want to make a living doing this - then read on.
2. Practice and validate production techniques the first year. Just like learning how
to drive stick, you must practice before driving in traffic. Produce enough for your family and
give surplus to friends and potential future customers (and ask for their feedback).
While sitting around the womb Caleb made the most of that time.
3. Research the market (and incorporate what you learn and opportunities discovered into the plan). ID multiple customer groups (food and homeschool co-ops, particular communities, farmer's markets or cooperate with an established producer of a different product, etc.). Define multiple marketing strategies. Marketing will likely be half or more of your effort until your customer base grows by word of mouth.
4. Crunch the numbers (another portion of your plan), account for fuel, materials, cost of
sale (fees or commissions), losses, etc. Run
different scenarios (what if average bird size is x, or we use x instead of y, or we drop the price to x, etc.). Estimate ALL
labor hours, that means ALL the time you spend on whatever it is that supports that effort
to help your “go” or “no go” decision.
6. Sell retail (finish the product as much as possible and sell to the consumer). This generates more revenue than selling to a grocer or restaurant, BUT only if you have an established customer base. Selling to a grocer or restaurant may make sense if it allows more time to capture retail customers (or gain access to them) or if you have too much product you need to move.
7. When reality demonstrates the opposite of what you thought - the numbers you originally crunched are wrong, selling more
of that money losing product only increases your losses. Another thing that sounds obvious, but for some it isn't. Focus your time on efforts that maximize returns to recoup losses. If vending eggs loses money, but selling
berries makes money, don't continue the egg endeavor thinking you'll eventually cover costs and then stop, stop the egg endeavor asap and dedicate more time to
berries.
8. Network with other vendors pursuing the same or different things to learn from their mistakes and get ideas. This includes competitors, you'll be surprised how this can help. A competitor who has become a friend had an inventory shortage and bought the surplus we had trouble moving.
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The Egg PoIice, at least they aren't armed. |
10. I forgot what the last one was which stinks because I thought it was really good... hopefully I'll remember it for a future post.
11. Since I forgot 10, here's another. Learn how to maintain & repair whatever machines you'll be using. Things break at the worst times (like the double flat I had - and it didn't end there; a few hundred feet to the destination the trailer got stuck). Own duplicates of tools commonly used and manuals if you don't already have the knowledge to fix what you own. You also need things like a winch, bottle jack, tow straps/chains, etc. to minimize recovery time.
12. And one more thing, have a good 1st aid kit (w/ blood clot) and fire extinguisher ready (you're in the country, 60 min+ away from 911, or in a field or on a fence line far from water - watching an engine fire that destroys less than a hundred $ in parts turn into one that completely destroys the machine will really set you back [the former owner of the dozer in the pic purchased it as a replacement for one that burned and was a complete loss]).