Is there money to be made?

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bigbrologan

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As most of you may now, I am a rabbit raiser still in high school. I've got a couple years left and been thinking about my future. It seems obvious that rabbits are my passion, and so I have come to the following conclusion:

I would like to go to University to attain a degree in Business. My hopes are that all of my college will be paid for me, considering my 4.0 GPA.

From there, I would like to acquire a piece of land (preferably with a barn), and start my own commercial rabbitry.

I've been doing a lot of research, and I know I've still got a LONG time until I'm at this point, but it really seems like something I would enjoy doing.

However, I have a few concerns:

1. Is there profit to be made with a large commercial rabbitry?
2. If there is profit to be made, where does it start (i.e. how many breeding does, price/lb, etc.)?
3. Where do I need to be located in order to market my rabbits? I've yet to find a processor in Washington, so it looks as though I may be re-locating to another state.
4. Is this really what I want?

Realistically, I won't be able to know the answers to these questions until I've put my foot in the water. However, I was hoping to receive some input from some of the larger rabbitries on this forum.

I also know that this would require A LOT of labor, time, and money on my part. Ideally, I would be able to get a loan from the bank, but I know in this economy that may be difficult. Without money, I wouldn't be able to start up my operation, and I would have to find work elsewhere until I had the money. This scenario is plausible, although not preferable.

My theory is that I would start small, raising 25-50 does after work and such, until I've expanded my herd so that it is large enough to sustain itself and me full time.

Anywho, just was hoping I could give a penny for your thoughts.

Thanks,
Logan.
 
Hi, Logan!

You've made it obvious in your time here that you have a good, level head on your shoulders. It's my understanding from a similar recent thread that there is money to be made with meat rabbits, but your operation does have to be large to make money. I think you quite up to the task, but do heed the cautions of the members who will be answering you here. :)

Saving the money is actually much more preferable, especially in this economy. Things are just so volatile right now. You don't want a loan weighing down on your neck, if rabbit meat sales slow down (or the price of feed dramatically increases) and you begin to struggle with your payments. It would take longer to get going, but not having that huge debt will be priceless along the way. It would be easier to earn the money to pay for feed than to earn the money to pay for feed and your loan payment.

Maybe you could get a grant. :)
 
Logan, it is so wonderful to see how you have grown and matured in the time you've been here, even though we can't see you physically. It's obvious that you have put a lot of good, researched thought into this.

I don't know anything about commercial rabbit raising, but hopefully you will get some good input from those who do.
 
Check with Daisy Hill farm. According to their website, they're a processor within WA. I know I've heard they'll buy excess stock. I have talked to her over FB and found her very personable. http://daisydeva.webs.com/

There is money in anything. Whether there is money in it within your parameters is another story altogether.
 
I don't know much about the profitability of rabbits, but I do know something about grants and land purchases. Check out the American Livestock Breeds Conservancy http://albc-usa.org/ for rabbit breeds considered in need of "saving". Then check with your local Small Business Administration, I believe there are grants available for conserving heritage breeds, especially if you can bring new business to a depressed area. Start scoping out land NOW, as far as prices, and saving what you can. Since rabbits don't require a huge amount of space, but property is usually more expensive per acre the closer to town you get, and "farmland" is often sold in large parcels (so the total cost is still high), what you want to look for is somewhere in between, that has been parceled down, but still retains the cheaper per acre price. Make friends, if you can, with family farmers whose kids are not interested in farming, or who want out of it themselves. I have had friends buy property in this way, they make small monthly payments direct to the farmer, who continues to work the property until such time as the buyer is ready to move onto it (usually 5-10 years future). The farmer gets a small income for a few years, usually keeps his home and a few acres himself, and you get "farm price" for a smaller amount of acreage than usually required to purchase at that price. If you do this, make sure you have a real estate lawyer look over the contract, though! In any case, planning ahead is always a plus. Good luck!
 
I tried to get a loan to start my own business (pet shop) in my twenties. Banks will not loan money for a new business unless you have the cash or collateral to "secure" the loan.

If I wanted to borrow $50,000 I had to have at least that much in cash or collateral such as equity on a house. Unless you have a ready means to pay the borrowed money back, a bank generally wont take a chance on you.
 
bigbrologan":1pk981bx said:
Would a grant be available for something like this?
Click to expand...
Go visit the Small Business Administration nearest you, they'll be able to help you find out.

Don't listen to them too hard, though, as I found the ones I talked to made everything sound a lot more difficult and involved than it is. :roll: Maybe yours will be more helpful.
 
First thing is... meat or pets?

For meat rabbits, do you want to sell to a processor or directly to restaurants and consumers? The state you live in will dictate which is a possibility for you. In Virginia, there are no processors. Rabbit is a non-amenable meat and can be processed without USDA inspection. We can sell directly to restaurants, markets, grocery stores and consumers. There are some issues with end user - restaurants and markets but that is an issue of the laws contradicting themselves and does not impact us as producers.

There's no way we'd be trying to be a "commercial" rabbitry if we couldn't sell wholesale to restaurants. We get $6.50+ / lb. I honestly have no idea how anyone can make a profit selling to processors.

Right now, we have 15 working does and 3 working bucks. I have one buck I'm waiting to mature. I want to add one more pedigreed buck and continue adding does, whether by purchasing or growing out our own stock.

We are making the most money selling breeding trios of our Silver Foxes. Once we have some established NZ lines, we'll sell pedigreed NZs for breeding stock as well.

As for location, I would suggest being within 100 miles or less of a metropolitan area -- IF you plan to sell meat to high end restaurants. We look for restaurants with one or more of the following criteria: Entree price of >$20; History of purchasing locally produced products; Uses organic/pasture raised ingredients. If there aren't any restaurants with those criteria in the area, then you should look elsewhere.

When looking into locations, also check out feed options. I know that the same feed I purchase at Tractor Supply is often $2 less/bag in other cities. What are your feed options? Can you find a local mill for cheaper feed?

Create a business plan. No matter where you go looking for funding, you will need a business plan. Start working on it now. Sure, it will change over the next 4+ years, but you need a foundation. Find a service like SCORE in your area that will help you with your planning. (SCORE is funded by the Small Business Administration and is a free service. I don't know if it's just in VA or not.)

Start working on a marketing plan. Again, it will change over time but now is the time to think big, outside the box.

Kickstarter.com - live on that site. Study the successful projects and learn from them. This may end up being your funding source.

Okay.. that's the best brain-dump I can do on New Years Eve with a cold and a migraine. :) Feel free to ask questions!
 
Also remember that the land is more easily obtained by loan than the rest because you could buy it with a personal home mortgage. Then rent the barn and property to the business, your rabbitry.

That way if you incorporate the business, And things go south, you will still have your home. Nothing wrong with providing your self a little personal security by doing this. The rent the business pays you would pay your mortgage, and then you can give yourself a paycheck as well. If the business needs more money, then you can loan your paycheck or part of it back to the business.

In the end the business is broke up into shares that are all owned by you accept for a share or two that belong to a parent or spouse. And when you are ready to retire you liquidate the business, repay the debt to yourself and being the major share holder you get the rest anyways. :)
Does that make any sense at all?<br /><br />__________ Tue Jan 01, 2013 1:44 pm __________<br /><br />The only reason I know anything about this set up for business, Is because my sister who is the top Pom breeder, has her business set up this way. I wish she wasn't so busy. I would have her explain it to you.
 
Absolutely. My father owns a small business, so I know most of the ins and outs of entrepeneurship.

As a small business, I would be able to make tax deductions, right? On things like cages, feed, the building, and other supplies. That would require a small business license though. Am I right in saying that?
 
Most definitely yes, you (at least here in Canada) should be able to write off all expenses from the business.
Your business license depends on where you set up but I would plan on needing one, also a business expense
 
Yes, do a DBA, and get a Tax number from the IRS and your state, and you are in business. Also check for any state and local licenses you may need.
You can file under your own SSN # as a sole proprietor, or you can Incorporate, or do a limited liability Corporation. Its all up to you on how you want to run your business. If you Incorporate you must have at least one other share holder. But you could sell one share to a parent or anyone you choose. :)

__________ Tue Jan 01, 2013 3:35 pm __________

Everything that you buy for your business is deductible. Keep receipts for everything. And even keep track of mileage for business and expenses for travel to do with business. So those bunny trips for shows and to purchase are deductible, as well as a new breeding rabbit as well. :D<br /><br />__________ Tue Jan 01, 2013 3:36 pm __________<br /><br />You could insure your animals even, but honestly, the cost outweighs the benefits in most cases.
 

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