Products
If your new farm business idea is about making a product you need to plan the production process. Ask yourself:
What raw materials will I need to buy and how much will they cost?
You need to identify and cost the raw materials to be used in the production process, including packing materials and sundry items. When estimating quantities you should allow for wastage.
You need to identify and cost the raw materials to be used in the production process, including packing materials and sundry items. When estimating quantities you should allow for wastage.
Who will supply the raw materials?
You should try to buy directly from the manufacturer, as this will be the cheapest option. Shop around for the best price but balance this with practical considerations such as location, and avoiding dependence on a single supplier.
You should try to buy directly from the manufacturer, as this will be the cheapest option. Shop around for the best price but balance this with practical considerations such as location, and avoiding dependence on a single supplier.
Where will the materials be stored, and are there any special storage requirements?
Bulk buying is more economical but may not be practical if the materials are in any way perishable and you do not have suitable storage facilities. However, the stockpiling of raw materials just for the sake of it is unwise.
Bulk buying is more economical but may not be practical if the materials are in any way perishable and you do not have suitable storage facilities. However, the stockpiling of raw materials just for the sake of it is unwise.
What equipment do I need to process the materials?
If you can buy good quality second hand or reconditioned equipment it will reduce set-up costs, however some funding programmes may only provide grants for equipment if it is new.
If you can buy good quality second hand or reconditioned equipment it will reduce set-up costs, however some funding programmes may only provide grants for equipment if it is new.
Where will the production process take place?
If you have decided to use one of the farm buildings as a production facility you will need to consider things such as planning permission, access, noise and disposal of waste. Particularly for something like a food related enterprise, having the right business premises is vital. This is not only for efficient production but also for the overall image of the business, especially if prospective customers will be visiting the premises.
If you have decided to use one of the farm buildings as a production facility you will need to consider things such as planning permission, access, noise and disposal of waste. Particularly for something like a food related enterprise, having the right business premises is vital. This is not only for efficient production but also for the overall image of the business, especially if prospective customers will be visiting the premises.
What kind of quality control will I carry out?
It's important to have some kind of check on quality. Depending on the product it may be enough to do a sample check, for example one in every 10 pots made. A lot will depend on the nature of the product. Anything that may be dangerous, if faulty, should undergo rigorous quality tests. Find out if there are specified design standards for your product and if any British Standards (BS) or ISO standards apply.
It's important to have some kind of check on quality. Depending on the product it may be enough to do a sample check, for example one in every 10 pots made. A lot will depend on the nature of the product. Anything that may be dangerous, if faulty, should undergo rigorous quality tests. Find out if there are specified design standards for your product and if any British Standards (BS) or ISO standards apply.
How will I distribute the finished goods?
Do you intend to distribute the goods yourself, sell through an agent or get people to come to you? Examine the options and decide which is the most cost-effective route for you and your new product.
Do you intend to distribute the goods yourself, sell through an agent or get people to come to you? Examine the options and decide which is the most cost-effective route for you and your new product.
Will I need to register a patent?
The patenting process is expensive and time consuming, but if your business involves a truly new or innovative product or invention you will have to consider how your can protect it.
The patenting process is expensive and time consuming, but if your business involves a truly new or innovative product or invention you will have to consider how your can protect it.