Wednesday, October 20, 2010

10 Important Things To Do Before Starting A Worm Farm Business


Many folks start worm farming as a primary or second source of income each year. Some succeed while others fail.

As with any business, there's no one single secret to success. Worm farming is no exception.  Before you jump into a worm farm business (or any business, for that matter), there a a few important things you should do first.

1. Determine if worm farming suites you.

In this blog, we will be discussing the in's and out's of worm farming. You may want to follow "Worm Farm Business Blog" for a while to see if this type of business suites your lifestyle before jumping into the business yourself. Your success in this business depends on your being happy with what your doing and your level of enthusiasm.

2. Calculate the Start Up Cost.

Worm farming generally requires minimal capital compared to other types of businesses. But it does require some cash up front for materials to build beds/protective coverings, harvesting tools, starter worms, bedding materials, and worm feed, etc.

Consider how big you want to start and what materials you will require. Get worm prices from several worm growers and visit hardware and home improvement stores to calculate material costs. Budget enough cash to fund your business until you reach the point where your worm stock allows you to sell and create cash flow.

3. Write a business plan.

Once you've decided that worm farming is right for you and you've determined you have the cash to follow through, write a detailed business plan. Detail how you intend to operate your business, your financial forecast and your growth expectations.

A well-thought out business plan helps you avoid pitfalls and keeps you on tract. Write it and follow it, making adjustments along the way as needed.

4. Get organized.

Once things get rolling, you'll have less time to devote to organization. If you start out organized and keep it that way, you'll save time and money in the long run. Not to mention lowering stress.

5. Set up the right legal structure.

Weight the pros and cons of setting up a sole proprietor, LLC or corporate entity. The cost and ease of implementation as well as legal protection should be considered carefully.

6. Choose a business name.

Make sure your name is unique and won't be confused with any other company. Check out Internet domain name availability at the this time, should you expand to Internet sales. Doing it now will help in your search rankings later.

7. Open a business bank account.

Avoid accounting and tax nightmares by keeping personal finances separate from business finances. I recommend Quick Books for keeping track of income and expenses.  It's fairly easy to use and will make your accountant happy.

8. Prepare a marketing plan.

Research markets, potential customers - wholesale and retail - , analyze competitors, and create price structures. Modify and update this document regularly and follow it religiously.

9. Understand who your customer is.

You customers may be any combination of: vermicomposters, fishermen, other worm farmers, municipalities, and local governments (many are starting vermicomposting to process waste). Determine if you have the possibility of any of these types of customers and to what degree. This knowledge will help you in determining the type of worms and how many of each type you will grow.

10. Join local Business association.

Joining gardening clubs, fishing clubs, and other local associations gives you access to customers and retailers. Whether you specialize in vermicomposting, fish bait, or both, networking will help you build your customer base and get referrals.

In summary, "if you fail to plan, you plan to fail".  Getting started on the right foot makes a big difference in the success of your worm farming business.

Resources:


Red Worms and Red Wigglers:  Premier vermicomposting earthworms.
European Nightcrawlers:  This fairly new worm is rapidly becoming the most popular fishing bait worm.
Worm Farm Manual: A Step By Step Guide To Raising Earthworms.

1 comment:

  1. what if I want to raise them , But where can I find A market for bulk?

    ReplyDelete