A friend asked this week about picking products that balance customer needs with his own farming interests. We don’t have all the answers, but we’re happy to take a stab at it!
Here are 6 things to consider:
Grow something you like! I would make a terrible lettuce farmer. I think it’s boring. For that reason, I have no business growing lettuce! Picking a product you enjoy helps you to produce it well, sell it with enthusiasm, and enjoy the leftovers.
Grow something people eat. This is obvious, but often missed. Don’t start emu eggs or badger-hair brushes unless you have a strong conviction about them. Instead, pick something people are already buying and create a brand and quality that outperforms existing options. Hint: Check out your local grocery store to see what gets shelf space. If there is a giant cooler full of eggs, they’re likely a hot item. If there is no section for pomegranates, they’re likely less popular.
Consider cash flow. Some products sell seasonally (think turkeys), while others grow seasonally. Obviously, a turkey farmer has to plan for the influx of cash during Thanksgiving to last the rest of the year, while an egg farmer has to acknowledge that chickens produce less in the winter. Financial discipline, or a mix of seasonal products, will keep seasonality from causing problems.
Consider your climate. Merino wool sheep hate hot weather (for obvious reasons) while California grows terrible coffee. So, if you’re settled on a location, pick crops or livestock that fit there. Or, if you’re settled on a product, move to where it will thrive.
Consider perishability. Before planning a business around a product, remember that some products have a great shelf life (think honey) while others don’t (think lettuce). While neither is necessarily better, it’s worth keeping in mind, to make sure your product fits your schedule and temperament.
Consider consumption rates. At Six Sigma Ranch, we sell beef by the quarter (100 lbs.) because people eat a lot of beef. For that reason, we can do a lot of business with a few hundred customers. If we were selling only olive oil, we would need to acquire and maintain more customers to hit the same sales numbers.
Ps. We love writing on topics from blog guests, so keep them coming!