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Farm equipment broker

Do you know the in and out of tractors? If so, you have a chance to make fortunes as a farm equipment broker.

Business at a glance
Startup cost: Rs.4 lakh to Rs.8 lakh
Home based: One can work from home
Part time: One can take it up as a part-time job
Franchises available: No
Online operation: No

Business overview
International connections can really pay off, especially if you’re planning to start a farm equipment brokerage business. Your international connection will not only assist in marketing equipment overseas but also in locating discounted farm equipment for Indian buyers. The market for quality farm equipment such as tractors and hay combines is huge worldwide. Selling just a piece of equipment per week can generate business revenue of about Rs 1 crore per year, or more. The key to success in this business is to build and maintain vital contacts and alliances with farm equipment dealers and brokers and to seek international opportunities with booming economies. The investment that goes into the business varies based on factors such as initial advertising, business location and overall operating expenses. One way to minimize startup cost is to operate the business from a home-based office and market only local farm equipment to local potential buyers. As a rule of thumb, a farm equipment broker takes 10 percent of the total value of the farm equipment sold as commission. There are, however, exceptions to the rule. The commission rate will often be over 10% on low-value farm equipment and less than 10% on expensive farm equipment. Keep in mind that even if a piece of equipment isn’t sold, the broker is responsible for the cost associated with attempting to market the equipment, unless a prior agreement has been established with the equipment owner. This is a rare practice.

Market
Farmers who want to lease farming equipment.

Herb farming

If you have an eye for special plants, this is the market to be in.

Business at a glance
Startup cost: Rs.1 lakh to Rs.5 lakh
Home based: One can work from home
Part time: One can take it up as a part-time job
Franchises available: No
Online operation: Yes

Business overview
Herbs are extremely popular these days. From the smallest shop to the largest discount warehouse, one can find medicinal herbs, culinary herbs, herbal teas, baths, candles and aromatherapy essences. If you love the romance and mystique of herbs and like gardening, herb farm is just the right choice for you. You have a wide range to do business in. You can sell your herbs in wholesale market or to retail customers. Container plants or herbal products like soaps or vinegars can also be sold.

Some herb farmers operate pick-your-own fields where customers can chose what they want. The business is about you and mother nature and follows the stick-to-basics principle. It also serves as a tonic for body and soul. The main advantage of the business is that you can start right at home in your backyard or rent an inexpensive land. However, keep in mind that your profits will also be small, unless you have two-digit acreage. Having larger area under cultivation means you’ll need to know farming techniques cold. Also, you need to have a strong knowledge of how to grow and nurture herbs. You’ll also need a firm grounding in the wholesale herb business — what’s popular, who’s buying it, why, which herbs are best to do business and which new herbs are likely to be the ‘in’ product in the next few years as it can take up to two years to reap the benefits of your labor. Besides, you’ll need top-notch sales and marketing skills to get your herbs in the marketplace and keep them there.

The market
Your customers can be wholesale distributors buying for health product manufacturers, grocery chains and restaurants or you can be selling directly to manufacturers, grocery chains and restaurants. You can target other SOHOs — artisans and crafters who work with herbs, caterers, health and skin care products manufacturers and natural food stores. You can sell potted plants to garden centers, florists and nurseries. You can put your herbs directly in the public’s hands by selling at farmers markets and flea markets. Your best bet for selling to other businesses is to mark your niche in the untapped area of the market so that there is no competition. If you want to try the wholesale route, contact distributors (can be located via herb and specialty food organizations). To sell directly to SOHOs, take samples of your herbs to them and ask for business. For farmers and flea markets, contact the market organizer to find out about fee and make space reservations — display space at some flea market can be very competitive. So don’t wait until the last minute to make arrangements. If you plan a pick-it-yourself operation, advertise in local papers and put up sign boards on roads that lead to your farm. However, don’t forget to get the permission of your land owner and local zoning authorities.

Needed equipment
First and foremost, you’ll need a farm. If you have the land, half the battle is won. You can rent a piece of land at a low price — try power companies with fallow land beneath their towers or property owners who have unused acres in rural areas of your town. A word of caution: wholesale buyers of natural products may want your farm is on a certified organic land — one on which nothing was grown using pesticides, herbicides or fertilizers. Depending on the state where you are starting business, state agency or a private organization can provide the certification. Next, you’ll need seeds and growing supplies. If you have your farm in a cold-weather locale, you may have to invest in a greenhouse. You’ll also need a truck or van to deliver your produce to customers.

Flea market organizer
Introduce great deals to masses by organizing a flea market.

Business at a glance
Startup cost: Rs.5 lakh to Rs.10 lakh
Home based: One can work from home
Part time: One can take it up as a part-time job
Franchises available: No
Online operation: No

Business overview
Flea markets are a multibillion-dollar business in the United States, and here is your opportunity to cash in on the boom by becoming a weekend flea market organizer and manager. Get started by renting a commercial space in a frequented area. The space should be large enough to be sectioned into smaller vendor booths of 10-by-10, 10-by-20 and 20-by-20. During summers, and if the space permits, extra revenue can be earned by renting vendor stalls. Rents vary depending on factors such as booth size, location, equipment and hours of operation. When booking vendors, try for a wide variety of products — antiques, electronics, kitchenware, food items, clothing, tools, toys, art and sporting goods — to be offered for sale. Doing so can target wider spectrum of flea market shoppers. Additional revenue can be earned by charging a gate fee, parking fee, having an onsite ATM, renting equipment and providing shoppers with delivery services for large items. However, be careful not to get too caught up in extras. Vendor occupancy is much more important than charging a dollar to park. The investment to get this business up and running can be significant. The business opportunity may include high startup cost but the profit potential is excellent, and so are the long-term growth opportunities.

About startup cost
The startup cost given here includes an approximate financial investment that will be needed to start the business. This is generalized information and should only be used as a yardstick to determine business startup cost. Your investment will vary depending on the equipment cost, transportation cost, license and permits, operating location, working capital and initial marketing and advertising budgets. Remember a successful entrepreneur is one who carefully researches and plans every aspect of a new business venture, including the financial investment needed to start a business and the working capital required to achieve positive cash flow.

Greenhouses
If you love plants and flowers but lack the green thumb, greenhouses may get you good business.

Business at a glance
Startup cost: Rs.5 lakh
Home based: One can operate from home
Part time: One can take it up as a part-time job
Franchises available: No
Online operation: No

Business overview
Greenhouses have gained immense popularity in the last decade. As baby boomers slip into retirement, they look for ways to keep busy, healthy and to enjoy life. Greenhouses provide them with exactly what they seek. There are various approaches to start a greenhouse installation business. These approaches include:
A) Designing, building, selling and installing greenhouses.
B) Designing and selling U-Install-It greenhouse kits.
C) Selling and installing greenhouses for existing manufacturers.

Returns
Profit potential ranges between Rs.10 lakh per year part-time and over Rs.23 lakh per year full-time.

Organic farming
You can explore new business opportunities in the booming organic sector

Business at a glance
Startup cost: Rs.5 lakh or more
Home based: One can operate from home
Franchises available: No
Online operation: No

Business overview
If it’s time to sell the house in city and move to the countryside, but you’re just not sure what to do to earn a living, organic farming is the right choice. In the past decade, organically grown and produced food products have gained prominence and have been scientifically proven better for health. Of course, operating a farm that grows organic foods requires a great deal of consideration and research, not to forget a huge financial investment. However, the demand for organic food shows no sign of slowing down and will continue to expand as people become more
health cautious.

Freight Broker
A freight broker arranges for consignment delivery by truck.

Business at a glance
Startup cost: Rs.1 lakh
Home based: One can operate from home
Franchises available: No
Online operation: No

Business overview
As a freight broker you’ll work with manufacturers, wholesalers and distributors who need to get their products across towns and countries. You can specialize in LTL (less than a truckload) cargoes or in containerized ones. The advantages of this business are that you can work from home and it is evergreen as transportation will always remain a necessity. A hands-on experience in the transportation industry and contacts in the field are imperative. You can learn the tricks of the trade by working for another freight brokerage. Excellent organizational and time-management skills and the ability to get things moving quickly are a must.

The market
Your customers can be manufacturers, wholesalers and distributors. You can also target companies that exhibit at trade shows or conventions and need booths and display materials moved to various sites. Advertise in trade magazines and in import/export Internet sites. Mail sales letters and brochures to prospective companies and ask for referrals from satisfied customers and industry contacts.

Cold storage
With India betting big on export and farmers having a greater access to markets, setting up a cold storage facility can just be the right business to be in.

Business at a glance
Startup cost: Rs.4 crore
Home based: One cannot operate from home
Franchises available: No
Online operation: No

Business overview
Cold storage provides refrigeration facilities to farmers for storing and preserving perishable food products like fresh vegetables and fruit, dairy products and other raw materials. Cold storage ensures that perishable products retain their freshness and do not go bad before these reach a retailer. It minimizes post-harvest losses.

Requirements
All cold storage units have to get an NOC from the Pollution Control Board and a license from the District Horticulture Board. The DHB also provides capital subsidies to entrepreneurs for setting up cold storage units and expanding these.

The market
This sector is ripe with opportunities as the country faces a huge dearth of cold storage facilities. The Government, in the Union Budget 2010-11, has announced that it would allow external commercial borrowings for cold storage or cold room facilities.
This includes farm-level pre-cooling for preservation or storage of agricultural and allied produce, marine products and meat, as a part of farm to market initiative and to promote private sector investment in setting up of cold storages.
Cold storages enjoy concessional customs duty of 5% with full exemption on service tax levied on initial setting up and expansion of cold storage facilities.

Food processing
With the processed food market accounting for about 32% of the total food market, venturing into food processing can be a great choice. However, it requires a huge initial investment.

Business at a glance
Startup cost: Rs.5 crore or more
Home based: One cannot operate from home
Franchises available: No
Online operation: No

Business overview
Food processing is a procedure of converting raw materials into food products via various techniques. Food processing is usually done to make food more suitable for consumption. This may be done by flavoring, by adding nutrients and/or vitamins or by processing materials that are not fit for consumption in the raw form. The process also helps in containing contamination due to exposure or presence of bacteria.

Market size
In an estimated market of nearly Rs 8,15,273 crore, processed foods accounts for about Rs 3,03,462 crore. According to CII, the food processing sector has the potential to attract Rs 1,49,466-crore investment in next 10 years and generate employment of 9 million person-days. The government has implemented several plan schemes to provide financial assistance for setting up and modernizing food processing units and to create infrastructure. It has also extended support for research and development.

Requirements
Most of the processed food items have been exempted from licensing under the Industries (Development and Regulation) Act 1951, except the items reserved for small scale sector and alcoholic beverages. Food processing for consumer foods is de-licensed and approval for foreign investment up to 51% of equity is granted. Food processing units were included in the list of priority sector for bank lending in 1999.

Packaging services for agricultural produce

With so much competition in food and food products industry, packaging can help you earn huge returns on your investment.

Business at a glance
Startup cost: Rs.25 lakh or more
Time period of ROI: Anywhere between 2 and 4 years
Home based: One can operate from home
Part time: One can take it up as a part-time job
Franchises available: No
Online operation: No

Agricultural produce has a limited shelf life. Packaging enhances the shelf life of products by providing protection. Also, consumers today want to know all about the products — its ingredients, nutritional value etc. So, packaging becomes an important branding platform. Packaging makes a product more attractive to a consumer and makes distribution, handling, display and sales much more convenient. Since packaging is a non-polluting industry, it does not require any licenses or registrations. Procure the necessary machinery and you’re good to go.
Growing at the rate of 20%, packaging services are highly in demand. “Less than 10% of the agricultural produce in this country is packaged. There is a huge potential for growth and for new players,” says Pranab Parikh, MD of Parikh Packaging Pvt Ltd.

©Entrepreneur June 2011

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agricultural products, billions, business, cold storage, cost, customers, farming, fast food, flea, food processing, freight broker, greenhouse, herbs, manufacturers, nutrients, Organic farming, packaging services, start up, tractors, Tractors and Farm Equipment