5 Tips to Start your New Farm Business
After meeting through the Future Farmers of America (FFA), Jared and Valerie Luhman got married after college in 2018 and founded Grass Fed Cattle Co. They have a shared love for agriculture and have built a thriving six-figure Farm business feeding their local community in Edina, Minnesota.
Fast-forward 5 years, and Grass Fed Cattle Co. has continued to grow their business and customer base, by implementing 5 best practices to attract and retain local Buyers.
Recently, Barn2Door spoke with Valerie to gather the 5 Tips she recommends to New Farmers to build a thriving business.
1. Start with “Why”
Farming may look glamorous on social media, but it is hard work. Be sure you (& your spouse) are fully committed to your dream of building a Farm business. Write it down and share the dream for your Farm on your website, social media and in your Welcome Email.
By sharing your dream, you’re inviting Buyers to become loyal supporters of your Farm business. And, you’re differentiating your story from a commodity product purchased at a grocery store. Americans love small business owners. In fact, 9 out of 10 Buyers would like to purchase from your Farm!
2. Know Your Customer
You’re not going to serve the needs of every potential customer. However, you can certainly make your ideal customers happy. The key is to ask - who do you want to be your customer? Start by answering these initial questions to define your ideal customers.
Who are they? What’s their profession?
Where do they live?
How many people do they live with?
What is their education level?
Why would they purchase from your Farm?
What pain point does your Farm solve?
“You have to do more than just feed someone because we can get food in a lot of different places. You need to identify why your ideal customer would pay more for your Farm products, and what keeps them coming back for more.”
Your ideal customers must perceive there is more value in purchasing your Farm products, than conventional alternatives at a grocery store.
3. Build a Farm Brand that inspires Loyalty
All of us are loyal to Brands. Whether it is the type of car you drive, the boots you wear, or the beer you drink. Quality products are table stakes. However, Buyers must connect with your Farm Brand emotionally to inspire loyalty.
The key is to communicate your Why (see #1 above) and to connect Buyers to your Farm Brand in every interaction - online and in-person. Buyers should associate your Farm Brand with you, your family, and the dream for your business. Your Farm Brand should be personal.
Use your Farm Brand everywhere - on your website, your newsletter, your email signature, and on all your products. “Stamp” your Farm Brand on all your packaging (boxes, bags, tape and envelopes) and merchandise (hats, t-shirts and cups).
Give loyal Buyers merchandise as an incentive for large purchases (e.g. a free hat with a $100 Farm Box subscription). After asking Buyers’ for their permission, take pictures with your Farm Branded products Share those photos in your Farm newsletter or on social media (and tag Buyers’ social media handles). Your Buyers will help expand market awareness of your Farm Brand and attract more customers.
“Building your brand is one of the most important steps that we can take as Farmers to attract and retain loyal customers.”
4. Be Smart About Pricing & Packaging
Too often, Farmers price and package their products for large families (like their own), which limits your market opportunity. For instance, if you sell beef by the quarter, half or whole animal, then you’re limiting your market to just 3% of households that own a chest freezer.
One-third of Americans live alone, one-third live with 2-people, and the remainder live with 3+ people. Farmers should price and package their products to meet the needs of different household sizes and consumption habits.
By moving your products in Bundles Boxes (e.g. 10, 20 and 40 pound boxes), your Farm can appeal to Soccer Moms and Urban couples. They do not own chest freezers, but are willing to pay a premium for local Farm products.
5. “Convenience” for Buyers is a Winning Strategy
The tipping point for your Farm’s success is convenience.
In a crowded market, Farmers can stand out by making it easy for Buyers to purchase and pick-up products locally. Farmers that are 20+ miles outside of town are NOT convenient and will lose 82% of potential Buyers. Whereas, Farms that offer local pick-ups within 5 miles of their customers will attract 80% of potential Buyers. (Partner with a local business, church or school for your local Farm Pick-ups).
A Subscription Farm Box service that is delivered to a Buyer’s doorstep is the pinnacle of convenience. Your regular presence on a delivery route (in a Farm-branded vehicle), will attract neighbors to purchase, too. Start with a narrow Delivery zone (e.g. 1-2 zip codes) and ensure you can do so profitably before expanding. Charge a minimum of $5 per Delivery to offset your fuel and labor costs.
“If your Farm products are available weekly, bi-weekly or monthly, then offer subscriptions. They're going to keep people coming back and make it easy and convenient for those customers to have ongoing access to your Farm products.”
Conclusion
Grass Fed Cattle Co. has built a thriving direct-to-market business, with a strong Brand that has attracted and served 1000’s of Buyers. Follow the 5 steps above to grow your Farm business and attract a loyal base of Buyers.
Barn2Door is delighted to serve 1000’s of Farmers in all 50 states. We provide an all-in-one solution to help Farmers grow and manage the online and in-person sales. If you’re curious to learn more, watch this 5-minute video.
Learn more about Grass Fed Cattle Co, listen to Valerie Luhman in her Own Words
Listen: Building a Farm Business: 5 Tips Every Farmer Should Know