How to Starting Citrus Farming Business

Saturday, October 12, 2013

How to Starting Citrus Farming Business

It may seem intimidating for some people, especially the city folk, to think of citrus farming as viable source of income. But this tutorial will help you understand that it doesn’t take more than patience, a good understanding of the citrus trees’ lives to help you start up the wonderful world of the citrus farming business.

There are four important species of citrus: the Citrus aurantfolia (Key Lime), Citrus maxima (Pomelo), Citrus medica (Citron), and Citrus reticulata (Mandarin Orange and Tangerine).

Most commonly used is the Mandarin Orange. You must choose your species wisely as certain species work for certain climates only. This might dictate what your business could take route. Would you want a late-bloomer for those cold winters or those for summer where people would use them for orange juice? It would depend mostly on the species you would choose.

Primer for the Citrus Farming Business

When choosing lots to buy for the citrus farm, you have to choose those that have moist, but not too wet soil. It is suggested that you should test the soil’s viability, dig a hole 12 inches wide and 18 inches deep. Fill it up with water and see it drain out. If it takes more than two days for the water to drain, it is best to change the location. This means that the soil isn’t too good for the citrus. This should be done on all planting sites to prevent bad citrus trees. Remember, this takes a lot of time. It’s better to do this at an early step or waste months waiting for a bad tree to grow.

Location is a very important factor in purchasing lots. The wind speed, sunlight exposure, and such play an important factor in the growth of the citrus. Spaces between trees and rows are important in terms in absorbing sunlight, water, and air and to provide an easy access of labor and equipment.

There are many ways in planting the citrus. The traditional way is the use of seeds but may possibly take years to build. Mix the soil constantly with mulch and manure. Make sure that the area gets much sunlight and water. Water the young tree two to three times in its first week and once or twice in the succeeding weeks.

Weeds should be kept free from the area as possible, as these are the major disrupters of the growth and development of the citrus. There are some pests that are perennial to disrupting the growth. It is suggested that you have someone keep them in check at least once a week.

Citrus Farm Start up Cost

When compared to other businesses, citrus may take a longer time for a return of startup cost, but usually the return will be bigger than the investment in the long run. All it takes is just patience for the business to bloom. It usually takes around five years for the business to start earning. Since the orange is a seasonal plant, it does come with its advantages and disadvantages. But patience would help you win in the end.

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How to Starting Citrus 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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Saturday, October 12, 2013