From Family Homestead to Successful Farm
Shenk Family Farm in North Carolina began their protein operation in 2016, turning it into a business the next year. With the help of automated software, successful marketing efforts and convenient, local fulfillments, the Farm has scaled to a 6-figure operation.
Though every Farm business is unique, it is helpful to gain insights from successful Farmers who have been in your shoes. Ensure you are prepared to start your business, by taking crucial steps to organize your Farm operations and grow strategically. Trying to change too quickly may result in failure, while avoiding all risks may put your Farm in a box. Rachel Shenk recently shared how their Farm started and successfully scaled in a matter of years:
Have Realistic Expectations for your Farm
You must be realistic about growing your Farm business. When you start with a small Farm, you can create a plan to scale in the future. To ensure success, you must start small, so your mistakes are also small. If you try to grow too quickly, you may create foundational errors in your business that require time and money to correct. As a new Farmer, creating a business plan that works for you, your family, your products and your region will be important.
Rachel says, “It's easy to get overwhelmed fast. It was really nice to start small and get really good at [one thing] before we added something new.”
Shenk Family Farm started with chickens, and grew their inventory selection as their business grew (pigs, and now beef cattle). They knew starting with a bunch of animals and no Buyers would lead to greater losses. Securing a loyal customer base first, then building from there will help build momentum and secure a strong start for your Farm business.
Many people like to romanticize the idea of Farming sustainable foods to serve your community. However, you must be prepared for hardship to handle potential issues in the future. Your Farm may not be an instant success. You must build relationships in your community, create partnerships and learn from your mistakes. Selling direct to consumer gives you more freedom to set your own business terms and price your products for profit.
Start Marketing Before you Sell
You cannot simply show up to markets or open a Farm stand and expect sales. You must attract Buyers who are interested in your products. Building a base of loyal customers will allow you to push more product, instead of leaving the market with all your goods.
It is smart to start marketing before you begin selling. Communicate your Farm plans and the products you are growing with your community. Even if you already have products to sell, you can gain more Buyers through these interactions.
We had another Farm tell us, 'If you can get a product that's ready to sell and learn how to market, that will be a way to ease into a new enterprise instead of managing the animals and the marketing and the sales all at once.'
- Farmer Rachel
Once you have built up a base of loyal Buyers in your community, you need to establish convenience for shopping and fulfillments. Offering multiple ways to purchase from your Farm will increase Buyers’ willingness to shop regularly. You can give opportunities to shop in-person at markets, Farm stands and at local stores.
Shenk Family Farm seeks local Buyers at CrossFit® gyms or homeschool co-ops, because they know their ideal customers frequent those places. If you know where to market, and the products that your potential Buyers are seeking, then you will have an easier time finding them and earning their trust. Once you find places in their local loop (schools, churches, restaurants, neighborhoods), you will have an idea of where to set up a pick-up location for Farm products.
Grow your Email List, Build Trust
Collect emails and follow community members on social media to further market your business online. You can use a sign up sheet or a QR code at markets or in popular areas in town. If you have already built a trusting relationship with the person, they should be more than willing to give you their email. If you do not have a way to contact potential Buyers, no one will know where to find your products, leaving you with product at the end of a market day.
Offer a first-time order discount or include free recipes in your newsletters. Employ an email pop up form on your website (linked to your social media), so anyone who is already viewing your brand can sign up for communications with your Farm.
Rachel recommends sending a weekly newsletter, which can include updating Buyers on products, current Farm events and educating your community on sustainable agriculture. This keeps your Farm top-of-mind, with relevant information.
If you share content that is valuable to your Buyers, it will make it more enticing for them to purchase from your Farm. While social media is passive engagement, and does not ensure that every follower will see your posts, email is active outreach, more intimate and can be catered to specific Buyer types. Farm marketing will help you grow your customer base, establish trust and communicate your brand to your community.
Read: Double your CSA Members
Secure Consistent Orders
Farm product Subscriptions ensure consistency for your operations in better profit margins. Having orders secured, and fulfilled on a given day helps organize your sales. Sales will most likely not be consistent on a given day at the market, nor will how many Buyers will purchase from your store on a certain day. With Subscriptions, you have guaranteed commitments to purchase your products weeks in advance.
“We couldn’t depend on [days at the market] to be consistent. Subscriptions have been the backbone of the Farm. It’s probably a third of our sales that are guaranteed every month.” - Rachel
Offer pre-orders before you harvest products to secure payments ahead of time. You will be able to put these profits back into your Farm to scale in the future. Buyers will also appreciate the security of claiming your products in advance.
Organize your Farm Business
You will want to begin tracking all your income and every expense from the beginning, to ensure that you are in full control of your finances, and do not become overwhelmed in the future. You do not want to be blindsided by unexpected costs. While you may track costs currently for taxes, you need to consider if your product pricing leads to healthy profit margins. If you are losing money trying to please Buyers, you will not have a sustainable business.
To ensure planning, tracking and organizing your business is streamlined and easy, you need to employ software that automates your operations. This will allow you to save time while serving more Buyers in your area.
Do your research to find software that not only allows you to sell online and in-person, but also provides features specifically designed with Farmers in mind. Not every platform will have capabilities that are unique to Farms (e.g. Sell by Weight, Multiple Price Lists, Pick and Pack Lists), so you must find a solution that will serve your business effectively.
Even as your business grows, if you maintain healthy finances, an organized schedule and utilize Farm-specific software, it will get easier over time. It does not have to be daunting to scale your Farm business.
Conclusion
It can be difficult to scale your Farm simply by going to markets - seasonality, weather and inconsistent foot-traffic can lead to unpredictable outcomes. To build a thriving a Farm business, you must be able to serve Buyers in a variety of avenues - online and in-person. It is crucial to understand the expectations of Buyers in your area, where they frequent and how they prefer to shop. Build a strong foundation for your Farm business with organization, strong marketing and relationships with local Buyers.
Leverage software built for Farmers and manage your schedule to keep your business organized and serve more Buyers (without added stress). With your operations in order and strong marketing efforts to local Buyers, you will be able to build a Farm business that is integral to your community.
Barn2Door offers software for Independent Farmers to create and promote their brand, sell online and in-person, and save time managing their business. If you’re curious to learn more, watch this 5-minute video.