This guide looks at how diversification projects should be assessed and risks managed. It takes the potential diversifier from concept to conclusion, checking the ‘do’s’ and ‘don’ts’ along the way and providing example costings for over 50 alternative enterprises.
Foreword
Sensible diversification can make all the difference to some farm businesses – releasing unused resources of land, buildings and entrepreneurial skills and helping develop long-term sources of alternative income. This is all the more important now that the Single Payment is upon us.
But diversification is not the solution for all farming situations. To succeed, it requires an equal mix of enthusiasm, realism and management expertise. A project will often take a business operator or manager into uncharted territory, therefore levels of planning, budgetary forecasting and control need to be of the very highest order. Additional training and professional help are often important and a good investment. The key is to plan all aspects in detail and then subject every idea to the most critical examination of family, business partners, staff and professionals.
Even when a decision is taken, diversification has to be kept in perspective. By its very nature it is an addition to the core business of the farm and an extra demand on finance, management time and other resources. Making changes in small steps and ensuring implications of the change (such as tax, planning issues, regulation etc.) are thought through is also important.
However, given an identified market, appropriate resources and skills, a diversification enterprise can provide enjoyment as well as much needed income. This guide is designed to help farm businesses through the decision-making process to a sustainable, profitable enterprise.
Contents
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