Starting a Christmas Tree Farm
Christmas tree farm can be a seasonal business or a full time business. This is one of the business ventures that draw attention of many people.
All you need to start is proper planning.
Just like anything else, proper planning is necessary in starting a business and establishing a Christmas tree farm is not an exception. There are many things that you need to consider before you make your decision of starting such business. You need to take into consideration the time and budget that you need to invest. Venturing in this business requires good amount of investment. That is why you should calculate everything in order to determine the start up cost that you need to invest. On the other hand, as soon as you procure all the necessary things in starting a Christmas tree farm, you should maintain cash flow worksheet. In this way, you will have the chance to monitor the cash reserves and cash balance. Doing this is helpful to ensure that your investment will not be wasted. Above all, you should promote your business and employ good marketing techniques.
Obviously, you cannot start a Christmas tree farm if you do not have acre of land. In this sense, you will invest big amount of money in purchasing a land in case you do not have yet. Purchasing land is not just the significant cost but along with other related cost such as land appraisal, legal fees, cost of brokers as well as preparing the land. You might need significant amount for down payment. As much as possible you should select a location that would be suitable to the business you desire. Likewise, the place should be suitable for other facilities that you may think to build in the future.
Apparently, you will need facility where you can store and process the trees. However, the need for storage area will depend on the type of wood you produce. You can also build additional facilities in your location such as recreational facilities, wildlife habitat projects as well as water quality projects. Installing facilities is an advantage for your customer if you will sell Christmas trees. This would add comfort in your farm. However, build facilities that would match to your business ventures.
Another big expense that you would invest is purchasing equipment such as machineries and tools. Certainly, you will need this equipment in cutting and processing lumber. On the other hand, if you will not need yet in your production you can use your investment in other necessities. Likewise, you should also invest in other operating expenses. You need also to anticipate shortfall between the costs and revenues until such time that the cash flow of the business become stable.
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