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Angus calf. Photo by Gary
Karmer. |
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SELLING PRODUCT
Situational Analysis
The first thing that you have to do is to identify your strengths
and weaknesses. This sounds really simple, but we’ve found
that it actually takes quite a bit of time. We wasted a lot of time
trying to follow the models of some pretty brilliant people, only
to get a ways down the road and find out that, given our particular
set of circumstances, we couldn’t go that route. So first
off, do your homework. Make a list of what you have to work with.
Your team:
• Your family’s background. This is a group effort.
• Your personality. How do you deal with others? Would you
enjoy making a “cold” sales call?
• Your education and experience.
Your physical resources:
• The size of your ranch.
• The number and breed of cattle.
• The ranch’s history, layout, elevation and character.
• If pesticides, non-organic fertilizers or herbicides have
been used.
• If any part is irrigated or able to be irrigated.
• The condition of the pastures.• Water availability.
• If you own, or have access to, scales.
Your location:
• The distance to a town.
• The distance to a major metropolitan area.
• The nearest processing facility – and its willingness
to train you.
Economics:
• Your economic situation. Do you have savings to support
you during transition?
• How much money does the ranch need to produce, both short
and long term?
• How much cash reserve do you have?
• What is your available credit?
• Can you afford to break even or even lose money for a
few years? The general rule is to expect seven years to establish
a profitable direct-market business.
Supporting resources such as:
• Small Business Development Centers. The U.S. Small Business
Administration runs these programs to provide management assistance
to current and prospective small business owners. www.sba.gov/sbdc/
• Extension staff with experience in direct meat marketing.
• Private consultants.
Answer all of these questions before you proceed. Every factor
will play a part in deciding what type of operation is the best
for you. For example, if you are located fairly close to a metropolitan
area, your family has some experience with direct sales, and you
like dealing with people, the Joel Salatin model may be the best
for you. Then again, if you don’t like direct sales, and you
are located way out in the boonies, then you may want to have a
distributor sell for you.
You may want to consider writing a business plan. For help, consult
Building a Sustainable Business, a handbook from the Sustainable
Agriculture Network "Resources".
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