Is Worm Farming Profitable? Part 4(Click for Part 1; Part 2; Part 3; Part 4)
Next in the series on the question: "Can I make money worm farming?" Is worm farming a profitable business?", this post deals with #4 on our Successful Business Basics Check-off List:
- In your worm farm business plan, always, ALWAYS, over estimate your projected expenses and underestimate your projected income.
As a budding worm farmer, in making your business plan (and you are making one, right?) add about 30% to your projected expenses and subtract about 30% from your expected income. That way, you have a cushion built into what you expect your outlays to be and how much money you require so you can hang in there until your worm farm reaches profitability.
As stated before, the #1 reason businesses fail is cash flow: too much going out and too little coming in, and not enough reserve to keep the business afloat until you get established.
By making this 30% adjustment to whatever figures you arrive at in you business plan, there'll be no unexpected surprises to throw a "hitch" into your worm farm "get-a-long". I'm not saying you should accept your adjusted numbers as your stated goal or you should be satisfied with less profit. I'm just saying, in planning your cash flow, use the adjusted projections to manage your money's so you stay solvent during the start-up phase of your worm farm business.
By all means, set your goal at X amount of profit and have a firm belief and faith that you will reach your goal. Just manage your cash flow on the more conservative figures. Should unexpected costs arise, or a sure fire sale goes awry, you'll be able to absorb any short falls.
I can't say it often enough (so say it with me), the #1 reason most businesses fail is because of what? Cash Flow! So, use this strategy and you're 90% assured of being a successful worm farmer.
Successful Worm Business Resources:
Get off to a good start with your worm farming business. Learn how to set up your worm farm, how to grow earthworms, and other how-to's and troubleshooting tips in my Worm Farm Manual: A Step-By-Step Guide To Raising Earthworms. Order today and get started growing earthworms.
Other Worm Resources:
Red Worms: Grow the premier composting earthworm
European Nightcrawlers: One tough fishing worm. You could be the exclusive source in your area.
Combo Worms: Order red worms and European nightcrawlers together and save on shipping.
Worm Farm Manual: See what's in it. Just one tip can save you valuable time and money.