|
Investing in alpacas is actually buying a business – and becoming part of the fastest growing livestock segment in the United States. Alpacas are the product of your business. As in any business, your success will depend on setting up a goal oriented, business and marketing plan. Entrepreneurs looking for the gratification of self-employment, and perhaps a change of lifestyle, will enjoy the challenge and rewards an alpaca business offers – low maintenance and high returns, plus the association of other professional breeders. We can’t forget the pleasure of the alpacas themselves-alpacas are inquisitive and intellengent and very beautiful too – raising alpacas is a great way to make a living for sure!!
Those alpaca breeders, established and new, who direct their efforts to breeding top quality alpacas and managing their operations in a well-planned business manner, will enjoy success and profits in their alpaca livestock business. Fiber is the ultimate end product in the United States, thus breeders must work to produce marketable alpaca fiber for our developing fiber industry. Here are just three examples of alpaca businesses.
What does an alpaca business look like? Take a look at the following examples:
A. Full Time Alpaca Business
For the individual or couple, wanting to change professions, change lifestyle or diversify a current livestock or agricultural operation, the alpaca livestock business has much to offer. If your business plan calls for profits in your first year, that clearly means starting with a sizable herd of ten to twenty pregnant females and a very executable business and marketing plan. Critical to this alpaca business concept is effective farm promotion, capital for marketing and properly setting up your facility, and purchase of good quality stock.
Alpacas will be your product line. You need a quality product to offer prospective clients. Learn about bloodlines and what genetic lines are consistently producing alpacas with quality fleece in high volume. Ask for fiber records from breeders and note fiber analysis and shearing weights for more than one year. Don’t just go by show records and the ads you see for a bloodline – ask for records of the herdsire and offspring.
Also ask for health and reproduction records. Health and reliability in reproduction are essential. A fancy female with lots of ribbons will not do much for your bottom line if she can’t produce healthy and strong crias! A well known alpaca breeder when asked what were the most important qualities to look for in an alpaca said, “good milkers!”
Visit alpaca businesses in your area and other parts of the country; phone or email other breeders and ask questions. Buy wisely – purchase quality alpacas from breeders that will give you support and guidance as you begin your business. Here at the Kansas Alpaca Company, we provide ongoing consultation to our clients long after the sale as we feel that the success of our clients is our success too!
Education and herd management training are important too. You will find many farms offer clinics. The Alpaca Breeders Fiber School is an excellent resource for breeders and those new to the industry as well. ABFS offers accredited courses on all aspects of the alpaca livestock industry taught by the top industry professionals from around the world.
Consider what services YOU can offer to clients and how are you going to let the world know you have alpacas to sell! To generate income from your alpaca business, you need a quality product to sell and a versatile marketing program.
B. Start Up Business, Longer Range Plan, Part-time Operation
Many successful alpaca entrepreneurs start their businesses initially on a part time or small basis. They have a longer range plan, starting with a small herd with the intention of developing into a full-time business in time. Others only want a part-time, side business and maintain a small herd. Either scenario will work for you if you have a clear plan with set objectives and as always, marketing.
Let’s say you wish to have a retirement business, but retirement is five years away. You start purchasing your breeding stock now, enjoying the tax advantages (and the alpacas) as you grow. When retirement from your present employment becomes a reality, you are ready to transition to your established alpaca business on a full-time basis. During the pre-retirement you become involved in showing your alpacas, marketing your business and establishing yourself as a credible breeder.
Small Breeders, in a dedicated small operation will also enjoy much success if they have quality stock and a good business plan. The vast majority of our American breeders have under twenty alpacas. Those who succeed do so because they offer top bloodlines and specialty services to their clients. Perhaps you offer boarding (agistment) for investors or new breeders who don’t yet have a facility; you can offer your expertise in promotion or computer skills perhaps; offer classes on various aspects of the business. Use your talents to enhance your business.
Small breeders have enjoyed added income and great success by including a fiber shop in their operation. Offer and advertise that you have a alpaca fiber products-this, too, is a specialty area which has vast possibilities such as selling raw fiber, yarn, finished goods or wholesaling to local retailers.
C. Alpaca Investors
Some prefer to simply own alpacas as an investment, never intending to be a hands-on breeder. Alpacas do offer a good return and this certainly is a viable option. An investor must again invest in top quality alpacas and choose a managing breeder wisely. The manager you chose must have a solid, credible reputation, good herd management skills and a marketing program to make your investment grow and pay. Consult with an agricultural accountant for the tax advantages you might enjoy as an investor.
|
