Ways to Innovate in your Farm Business

As business people, we are all working to innovate in our market. We do the hard work day in and day out but often we can work smarter by innovating. We can do this by finding a niche in our market, serving our customers the best we can, and working smart, growing our business and feeling a sense of accomplishment from these tasks. We can all learn from each other as we go about these tasks. The business sector and the farming industry are not that different from each other. They both are usually pretty passionate about what they're doing, they both have a product to sell, and they both have to be smart, innovative, and work hard to succeed. The difference between the business sector and the farming sector is that one of them works outdoors every day. The tools might be different between these two occupations, but the bottom-line application is the same; they are both businesses that are working to succeed.  Being adaptable and innovative in your market is an important step in your business strategy. The market changes, and we need to adapt to it. Perfect example, Avocados weren't a superfood 10 years ago. (We didn't even know what a superfood was 10 years ago.) Finding these new markets is the challenge to any business; we just happen to be talking specifically about farming.

Here are seven ideas to help you kickstart your farm business

1. Find a need or market

First, you have to find a need. You can do this by using complaints you hear or difficulties in the market (or from your customers) to find this need. You might see this challenge first-hand, or maybe you have heard of a specific difficulty from someone else. Whatever problem you find, this is what you try to solve. (No fresh greens in the stores in this town, no local beef in this restaurant, etc.)

Find your niche market.

2. Learn about what farm products are in demand

Once you learn about a market, you can ask your customers more. Find out all you can about this niche product. Find out its uses and ways to market it. Find out about the production of the product and the costs. What problems does it have to produce it? How can you solve them? This is where your brand identity comes from. Do your research, have fun, and put your special spin on the product! 

You might also try to diversify your crop selection. Introduce new, high-demand crops, specialty produce, or heirloom varieties to cater to niche markets and expand your revenue streams.

Brand identity. Make an innovative brand identity for your farm.

3. Network with other farmers

Go to the lead producers in this space and see what they are doing. Talk to them about the problems they face, the solutions they have found, and the costs associated with this. You will get a very clear picture of what you need to do. You don't have to necessarily copy what they're doing, but you can see what makes sense for your business and how you might do it differently or even better. 

Just ask other farmers. You may find that other farmers are very willing to help you out. The farming community is a very welcoming bunch.

4. Secure funding for your farm business

This one is tricky, especially for small farms. So be cautious with this one. If the idea is to grow, sometimes you have to purchase items to make that growth. Don't be afraid of spending money to make money, but be clear about the economics of the purchases. Keep track of your finances and expenses so you can see where your money is going. I can't stress this enough. It's why we started Farmbrite. We want you to succeed and grow in your farm business, and knowing where you're making money is key. Learn more about finding funding for your farm business.

Understand the economics of your farm.

5. Roll up your sleeves and get your hands dirty

I don't hear as much complaining about doing the work with farmers as with other types of start-ups. Doing the work is the fun part for farmers; that's why they're doing it in the first place! The business side of things is the tedious part for farmers. (But that part is important too, so don't discount that just because it's uncomfortable.) Don't forget to do your work and then work on your business too.

Be optimistic but realistic. Making tough choices is part of being in business. If something isn't working, it might be time to cut your losses and discontinue. One farmer I knew had a passion for wool, and so they had sheep. They didn't have a large enough property for more than 20 sheep. Without finding more property, they couldn't make a profit. They had to make a decision to either keep the sheep and get more land or sell the sheep and find a different way to use the land they had.

There's nothing wrong with making a different choice once you start. Sometimes, to make these hard decisions, you have to take the emotion out of the equation. Do a Pros and Cons list and see where you end up. These don't have to be overnight decisions, but be realistic in your approach to your business.

The business side of farming is still farming. Take time to figure out what's working for you.

6. Plan and be prepared for mistakes

If you're not failing, you're not growing. You're probably going to mess up and have some loss at some point.  It means you're trying. The trick is to see it and learn from those losses. Track your progress, both good and bad, make changes, and adapt.  Another important part of this is exploring new ways to grow every year. The market is constantly changing, so each year you should be taking a look at how you can innovate and grow in a different way. How has the market changed? What could you do better?

Be innovative every year.

7. Leverage E-commerce and Direct-to-Consumer Sales

Build your online farm store, participate in local farmers' markets, or offer CSA (Community Supported Agriculture) programs to connect directly with consumers and maximize your profits.

Sell directly to your customer!

So, there are seven ways to innovate and find a unique space to sell your products in your farm business. I hope this helps you find a smart way to sell in your market.  Thanks for reading and happy farming!

How Farmbrite Can Help

Farmbrite provides an all-in-one farm management platform for everything you do on your farm. With Farmbrite's farm data platform, you can cultivate growth and streamline operations with the #1 rated farm software that brings all your farm work, records, sales, and data insights together in one easy-to-use place specific to your farm or operation's location. When you log in to Farmbrite, your dashboard will present a great deal of helpful information for your farm. Give it a try and see how it can streamline your farm.