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DO you have an on farm store where you sell......
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Joe@RFDG
Posted 2/24/2021 06:58 (#8854584 - in reply to #8854477)
Subject: RE: DO you have an on farm store where you sell......


Glenwood, Mn

My late grandmother's neighbor put a cheese plant on the dairy. They do well.  If you talk to them it's not for the faint of heart.  You always have to have your happy face on when doing retail.  They focus us a lot on wholesale (we purchase their products for our business).   Just gauging by the volume of cheese they make and what they sell out of the store front the focus is on the wholesale market. https://www.redheadcreamery.com/

My wife owns a winery on our farm.  Different product, same sort of deal (retail on the farm).  For the most part it works.

 

Here are some of my personal thoughts on successfully starting and maintaining a small business:

Have a SOLID business plan.  Write your goals down.  Remember, business plans can change but an incomplete plan is almost always better than no plan.

Get prepared for unnecessary red tape.  It's best before starting any project to get involved with the inspectors.  Do this well BEFORE construction.  RedHead creamery wanted to pipe the milk right to the creamery.  The state bucked that for a while (something to do with trucking unions or something because it had to be trucked off farm, pasteurized and trucked back in).  Finally, they had an act of congress to give a variance.  I wonder if it works in other states?  We lost 9 of the 87 wineries last year due to non compliance and covid stress.  For wineries, it's mainly plumbing, well and the bar itself need to up to code or it's a hard fail.  We get inspected by the same food inspectors so I would imagine a creamery runs into the same compliance issues.

Have a product to sell that is unique.  Everyone does cheddar cheese, RHC has unique flavors and seasonal goods (we serve their products at our winery).  Embrace and market your uniqueness, otherwise you are just like everyone else.  Example, as much guff as LawFarms gets, he's got a little niche market.  I can go to costco and get jiffy pop but it "isn't the same".  People can see through gimmicks so be genuine in your marketing.

Be humble and personable. People are spending their hard earned money at your establishment and they want to know a family/person is behind the business.  Not some corporate owned venture.  There is one winery in MN that is owned by no less than 50 owners (all shareholders). Bah. No thanks.  My wife and I own the winery ourselves.  The decisions get made here.  We are here working during the week and on the weekends just socializing/giving tours.  Any given weekday you will see my 4 year old riding his pedal tractor around as he comes to work with me.  It's absolutely no different than when I followed my dad around in the dairy barn growing up, but people get to see our operation.  People need to know they are supporting you and your family and need a reason to keep doing so.  Otherwise they will just go to a big box store.

Have a good plan for staffing.  You cannot always be there. My wife hired a full time tasting room manager for our winery.  Believe it or not, I actually have more weekends off now than I ever have.  Our manager works Thurs-Mon and her husband does weekend work at a local factory, so it works for them.  The key is to find someone that's a good fit for your operation. Not unlike farming.

Be well capitalized.  50 percent of businesses fail in the first year.  Mostly do to under-funding.  Most people are willing to work hard but that's only part of the equation.  It takes money to make money.  Whether it's borrowed/leverage or cash.  You need it.

Location, Location, Location.  Unless you have a simply amazing product to sell and/or can ship reasonable.  People are "afraid" of driving out to the country.  Our business has a gravel driveway and road.  Roughly 1.25 miles from pavement.  You wouldn't believe the people that say, "Geeze, we'd come out here more if it wasn't on a dirt road."  I grew up on gravel so it's not a big deal to me but it definitely is to others.  There are others that think it's "cool" to be in the country but I would say that's a very small minority.

Find a plan for the off peak times/slow times.  We literally do more business in one Saturday in July than we do in the whole month of January.  So what to do with the time off?  If you are a farmer, you likely have that figured out.  We send our staff on sales calls to wholesale market our product, get inventory cleaned up, etc.  You likely won't always be making money, but when you aren't, get caught up on maintenance, books, marketing, etc.  Basically be proactive and find things productive.

Have a memorable name/slogan.  Also be careful of what your business name would show up as a web search.  Example: A Google search of Red Head Cream shows a skin care product in the first search results.  Redhead Cream is 3 pornography sites, a skin care product, then the creamery. You have to type in redhead creamery to get the creamery to actually show up at the top of a google search.   They named the creamery for the daughters, who are obviously red heads, but sometimes the world isn't such a nice place.  Especially the web.  I am not saying they should have named it something else, because the name sticks and has good recognition.... just be careful.

Have a backup plan if things go south.  If things didn't work for our winery, I could move the machine shop (my real job). I designed the building to be dual purpose.  Plumbing, sleeves for electrical, office spaces, cold storage.  Basically make it as modular within reason.

Do NOT be afraid of collaboration and partnerships with others like you.  DO find markets to partner with (in our case, wine/cheese is a good fit).  My wife is part of a small winery marketing group.  Farmers are not necessarily known for sharing ideas because it's in our nature to work alone... Well, mostly.

For the love of all that is mighty, create an separate in drive/driveway from the main one you have for personal use.  You will thank me later when you are trying to relax on a Saturday afternoon and there are 150 cars going in and out of your yard.  When doing research for our venture, each and every owner said to do this. We did and it is magnificent!

Be happy with yourself.  This sounds sort of cliche' but you can get down when you receive criticism.  Believe me, you'll get it.  It took me quite a bit to get used to but there just isn't pleasing some people.  You will also get to deal with all sorts of people all across the board.  You wonder how some people walk and breathe at the same time.  Seriously.  Just the other day I had a guy drive through the RAISED flower bed.  Like what?   Just do what you can do and be the best you can.

 

Edit to add:   Have merchandise (aka "Merch").  In the winter months about 20% of our net income is derived from shirts, jackets, hats, caps, books, and "trinkets" of various nature. Added benefit is people are walking around advertising your brand.  Use quality clothing stock.  People have no problems spending $50 on a hoodie if it's good quality.



Edited by Joe@RFDG 2/24/2021 07:01
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