Farm equipment selling is a lucrative opportunity for any individual. In addition, there are several ways you can initiate the business. According to your investment capacity, you can have a plan for starting this business. Here, you can find a detailed farm equipment selling business plan sample for your ready reference.
In addition, the business is profitable both in the rural area and in the suburban. Agriculture equipment caters a wide range of products in different segments. Generally, farm equipment is a special type of hand tool, machine or equipment that helps in agriculture and farming. Some of the broad categories are:
- Soil cultivation
- Fertilizing & Pest Control
- Produce sorter
- Harvesting / post-harvest
- Hay making
- Animal Feeding etc.
Farm Equipment Selling Market Opportunities
Agriculture and farming are the evergreen industries globally. As the population grows, the urge for producing more food products will automatically grow. So, the requirement of agriculture equipment is also increasing. In addition, people always look for upgraded and effective equipment for getting the better result.
Secondly, the agriculture equipment manufacturing companies always want to establish a well-penetrated distribution network. And you can tap this opportunity easily. However, Asia-Pacific region is the largest market for farm equipment. The biggest consumer countries are China, Japan, South Korea, and India. The rising mechanization of farming equipment and increasing population are the factors propelling the growth for agriculture equipment in this region. Therefore, we can conclude, farm equipment selling is the profitable business for the entrepreneurs.
Farm Equipment Selling Business Plan
It is better to have some experience before going to start the business. If you are an absolute beginner in this industry, then conduct some market research. The local market demand for farm equipment depends on several aspects. These are agroclimatic condition, soil fertility, locally grown crops, natural irrigation facility etc. However, you will need to find out the demand for the specific products in your locality.
After having the information, you will need to craft a business plan. Additionally, you must include the financial projection and marketing strategy. Generally, the amount of investment depends on the range of products you want to deal. Determine your marketing and sells promotion strategy. In a full-proof business plan, you will need to determine several aspects. These are
- Executive Summary
- Management Description
- Market Analysis
- Organizing & Management
- Product Line
- Financial Projection
- Funding Request
- Marketing & Sales Promotion Strategy
Farm Equipment Selling Business Registration & Licenses
First of all, you have to register your business. Select a specific form of the organization according to the ownership and liability pattern. And then, register the business according to your state law. However, it hugely depends on the location where you are starting the business.
Check what are the licenses and permission require in starting the business. As you will operate the business from a retail location, you must obtain the permission from the Govt. authority.
In addition, talk to a local tax consultant. You must have a clear understanding of the upcoming tax liabilities and compliances.
Farm Equipment Selling Business Model
First of all, you have to determine the business model. However, there are several ways you can sell the items in exchange for profits.
First of all, and also the easiest option is taking a distributorship of a reputed company. In this option, you can apply to the companies who are looking for the channel partners. And according to their terms, you can initiate the business. For every unit selling, you will get a sells commission. And the profit is really lucrative in this business. Additionally, the parent company generally take the marketing responsibility.
Otherwise, you can procure the product from the manufacturers and sell them with your own price tag. In this option, definitely, you will be making more profit than the earlier option. However, this option demands substantial capital investment for commencing the business. Furthermore, you can also import the farm equipment from other countries if you can secure a better deal than the domestic companies.
Farm Equipment Selling Business Location
In initiating the business, you must have a retail location. Additionally, according to your product range, you will need to secure the area. Generally, you will need to have specific spaces for the specific requirements. The list includes the space for display, cash counter, customer sitting arrangement, and storage.
A roadside space with a wide display window and adequate parking space is the ideal location for this type of business. You don’t need to take the space in the heart of the city. Because farm equipment items are not the impulse buying products. Even, you can secure a space on the highway also.
Farm Equipment Selling Business Operation
Setup the store. You must provide a comfortable inside ambiance to your consumers. Additionally, pay attention to the product display. It is advisable to consult with an interior designer and craft a floor plan first. And then set up the store according to your exact requirement.
Then, you have to hire right manpower, because you can’t run the company of your own. However, first decide the scope of the engagement of staffs. Determine their job responsibilities. And then start interviewing. Generally, in this type of business, you must have a sells team. They will promote the product and will concentrate to enhance the channel penetration. In addition, you will need to have floor staffs, accountant, and mechanic also.
Procure the right tools for a smooth operation of your business. As you are running a retail store, you must have a retail management software (POS). This software helps to operate the business with several MIS facilities.
Related: 25 Most Profitable Agricultural Distribution Business Ideas
Farm Equipment Selling Business Promotion
You must promote the business. And you will need to find out the low-cost ways to generate convertible leads. Additionally, you have to arrange the training and display facility to the potential consumers. For large equipment like Tractor, you have to show the farmers what are the benefits they will be getting. In addition, trade fairs and exhibitions are the great places to promote your company.
Create a website of your company. Put the product list and contact details carefully. Additionally, you can also sell the farm equipment from online marketplaces. However, the long-term success of a farm equipment selling business hugely depends on the customer relationship and the quality of the products.