Do you want to know exactly how much it cost to start a poultry farming business? If YES, here is a detailed cost analysis for starting a poultry farm and raising finance.
Having provided you with a:
- Industry Overview
- Market Research and Feasibility
- Poultry Farm Business Plan
- Marketing Plan
- Licenses and Permits
- Cost of Starting a Poultry Farm
- Poultry Business Name ideas
- Marketing ideas
We will consider how much it cost to start a poultry farm business from scratch including the operating costs.
According to studies and researches, the cost of starting a commercial poultry farm in the United States of America or any other place in the world is capital intensive. However, the expenses would reduce especially as the first items and equipment needed to start are a one-time expenses only.
The only time the start-up capital is low is when the entrepreneur is either starting off on a small scale or is going into the provision of niche poultry farm services. Also, another reason for low or high start-up capital might be dependent on the kind of poultry farming – free range, deep litter system, semi litter system, and battery caging system – the entrepreneur is planning on going into.
How Much Does It Cost to Start a Poultry Farming Business?
If you intend launching your poultry farm business in the United States of America, you would need to ensure that you get most of the below listed items;
- Business Incorporation Fees would cost $1,500
- Liability insurance, business permits, and licensing would cost $2,500
- Amount needed for leasing a warehousing facility with large space for the birds as well as storage of equipment and tools for at least one year would cost $50,000
- The cost for equipping the facility with appropriate lighting system would cost $2,000
- Cost of acquiring required equipment and tools for the birds would cost $20,000
- Acquiring tools for humans (gloves, masks, etc) would cost $5,000
- Cost of launching a website would cost $500
- Miscellaneous expenditure would cost $2,000
Going by the above detailed research from different feasibility studies, you will need an average of $90,000 to start a small scale poultry farm business in the United States of America.
If you are intending to start a medium scale poultry farm business in the United States, you would need nothing less than $180,000. And if your desire is to start a large scale poultry farm business in the United States of America, then you should think towards raising close to or over $400,000 for your start – up capital.
Financing Your Poultry Farm Business
Even though the poultry farm business is regarded as a lucrative business, it does not therefore mean that everyone gets the financing they require for this business, as it is regarded as a lucrative but highly risky business. Financing a business is not only important, but it determines if a business idea would kick off and become a reality or just remain as a business idea.
Most entrepreneurs do not relish the fact of having to source for start-up capital as the requirements can be cumbersome and very strenuous; however, every serious entrepreneur knows the importance of finance. This is the reason why one needs a business plan on ground. A detailed business ground will help an investor determine if you are serious about your business or not, and could lead to more than one people seeking to invest in your business, especially if they know that you carried out your research well.
Some of the options that will be available to you when it comes to raising money to finance your poultry farm business in the United States of America are;
- Applying for credit facility from the relevant government agency
- Sourcing for grants from public and private institutions
- Raising money from personal savings
- Sourcing for loan from family and friends
- Applying for loan from the bank