How to Start Maize Farming Business

Monday, October 28, 2013

How to Start Maize Farming Business

Maize farming may be a simple business to start but behind it are requirements needed to gain success. Knowing the fact that maize is commonly used in different area especially as a food supply to a lot of countries.

It actually takes a lot of years to gain experience in maize farming or any kind of crop you want to farm.

It actually need at least 3 years of experience to be successful and if you do not have enough experience you can start by applying as an apprentice in a farm and learn some skills of a farmer.

Managing a maize farm is not that easy, it takes a lot of effort and some risk especially if you do not have money to start maize farming. You can ask financial assistance from your local bank. But before doing so, you need to be familiarized with the kind of job you need to face

everyday in maintaining a farm.

After you have acquired skills, you may now start searching for your financial resources. You may need to get a loan to start maize farm. You will be needing equipment and farm tractors, or as a start up you can actually rent machines and equipment.

If you are currently working in a company, you may not need to resign your job, of course as a newbie with this kind of business you need to back up things just in case something may go wrong along the way. But as soon as you see the need for a full time management on your farm and it is on the way to success, you may give up your outside job and focus more on your maize farm.

There are things you need to prepare in growing and preparing your farm which is written below:

Preparation of the land
Sowing
Cleaning and other tasks
Harvest
Post-harvest
Storage and conservation of seed for the next growing season
Shelling and selection of the seed-grain
Marketing

The last bullet is marketing which is the most critical part of the business. If you are a new farmer you need to take time to prepare marketing plan. You may need to learn the “4 Ps” in marketing which includes Product, Pricing, Promotion and Placement.

As for product, maize is known to be one of the in demand crop in any country so you may not need to worry about it because you are producing maize which is very useful and the demand is high now days.

In pricing, you need to be extra careful on how much you will sell your product, you need to consider everything you have spend including services, maintenance and other expenses you have incurred from the beginning.

Promotion usually starts with the wholesalers and price takers. Given the fact that wholesalers do not have full control of the product and the price, it will make production and distribution important. Wholesalers who are successful in promoting the product are those who add services on their product. And as for placement or distribution, the wholesaler may put up an outlet where identified market and buyers are within the area which will determine if you are successful or not in your maize farm after you have successfully established your maize and distribute it on your market and buyers.

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How to Start Maize Farming Business

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Monday, October 28, 2013