Is there money to be made?

[bigbrologan]

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.

Sorry, what are Poms?

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.

Also, I am not familiar with a DBA. I Googled it and could not find any information on it.

Thank you both for the help.

 

[3mina]

Poms are Pomeranians, a breed of small dog

 

[bigbrologan]

That makes sense. I'm not entirely familiar with breeds of dogs.

 

[Mary Ann's Rabbitry]

Sorry, what are Poms?

a small dog

Opps i see you beat me to it.

 

[tm_bunnyloft]

a DBA is a "Doing Business As" license that you get from your state. It is like an AKA. It means that you as a Sole Proprietor (otherwise known as a private person) can do business under another name such as your farm name. Then you can bank and do business under your farm or business name legally. Its basically registering your business name with your state.<br /><br />__________ Tue Jan 01, 2013 6:39 pm __________<br /><br />Here is a link for your state.

http://bls.dor.wa.gov/tradename.aspx

 

[bigbrologan]

Thank you once again.

 

[KianaPanda]

Starting your own business is risky, but sounds like youre Passionate and know what you want!

 

[NOrabeets]

Being a total noob to rabbits in general, I can only take advice where they are concerned. But I've owned a very profitable business, and lost money with a couple other ones. My advice would be to get that degree, land a good job that you don't hate...then buy yourself a nice little spread and go from there. If you get to the point that your rabbits can pay your bills and still put enough away for the future, then you can be a full time rabbit farmer. If you are extremely frugal and keep yourself completely debt free in college, those first few years of earnings may allow you to put down a large down payment on a few acres and keep putting your extra money on the principal.

 

[phillinley]

Being a total noob to rabbits in general, I can only take advice where they are concerned. But I've owned a very profitable business, and lost money with a couple other ones. My advice would be to get that degree, land a good job that you don't hate...then buy yourself a nice little spread and go from there. If you get to the point that your rabbits can pay your bills and still put enough away for the future, then you can be a full time rabbit farmer. If you are extremely frugal and keep yourself completely debt free in college, those first few years of earnings may allow you to put down a large down payment on a few acres and keep putting your extra money on the principal.

Echoing Norabeets, having the solid job outside of the farm first is very important. Being in a family of farmers, livestock is incredibly at the mercy of the market. What is profitable one year can be a detriment to the farm the next. Having a solid income to fall back on that isn't at the mercy of the market, the weather, and most importantly disease, is crucial to not only keeping your family stable, but to be able to have the extra money to be flexible to any crisis you might come across in the farm.

You can minimize your need for that stable money if you have a lot of grain to farm and bins to store it. But that kind of land for grain you can usually only get if you inherit it. Most of the family raises cattle now as the hog market was intentionally crashed 13 years ago so they can't do that anymore without major investment into confinement systems. But cattle is a solid market that isn't going anywhere. Rabbits are a niche meat market at best. If you're going to grow rabbits commercially, try to find a pharmaceutical company that you could contract with. You would most likely be limited to breeding New Zealands because of the required blood type, but you will get much more profit and better reliability through contract if you can get a pharmaceutical contract. We have a grower in Illinois who has a herd fluctuating around 2000 who has rabbits that are used for vaccine production, glaucoma medications and pregnancy tests. Sadly, the meat and fur aren't even used because the rest of the rabbit is needed strictly for medical purposes. I doubt many people who go to the pharmacy to pick up their meds are even aware of such things. This is an industry that is entirely reliant on steady rabbit production because in most instances, synthetic alternatives that do not require rabbits have not yet been developed. Much less risk in demand fluctuations than meat production, but the difficulty is finding the buyer.

 

[SatinsRule]

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?

Commercial operations are few and far in between, and that alone should tell you alot. We have one of the larger ones in the country right here in Arkansas, and most folks in the state have never heard of it. They have several breeders who raise and feed the rabbits, then the processor buys them for pennies on the dollar of what they sell it for.

2. If there is profit to be made, where does it start (i.e. how many breeding does, price/lb, etc.)?

Controlling costs/expenses. Sounds overly simplistic, but little to nothing goes to waste as it relates to the rabbits that are slaughtered, including the furs which are washed, dried, tanned and sold.

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.

The answer to that can be found in the state's animal rights laws, as well as any impending legislation that may be floating around in legislative chambers. Also, check local ordinances regarding not only animal ownership, but also how and where waste is disposed of. All of these will have an impact on the operation.

It will ultimately be a simple case of supply and demand, and if the demand isn't there, you will likely lose it all trying to make it work. The best indicators I can think of as it relates to the overall profitability of such an operation would be legislation.

4. Is this really what I want?

Unfortunately, you are the only one which can answer that question.

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.

The state of the economy is one factor which will affect any bank's decision to lend money to you. Liquidity of the market at the time you try and get a loan is going to have a big effect on the decision, but how the bank views the long-term profitability of such an operation is going to be every bit as big in the decision they will ultimately make. IOW, you're going to have to demonstrate to that bank that the business venture is going to be profitable over not only the near term but also the long term, and that will be easier said than done.

Another thing to consider would be the influx of chinese-raised rabbits. They're sold readily frozen to supermarkets at pennies on the dollar for what you'd be able to raise and sell them for here. The fact that they're imported or of lower quality means little to most people who are squeezing every penny for as much as it's worth to them. Your bottom line is going to be thin as it is. Having a competitor who undercuts the market isn't going to make the profitability of your business any better.

Another problem you're likely to face is that rabbits aren't viewed by the general public as a food animal. You can thank cartoons and Disney movies for that. Because of it, many people are repulsed by the thought that other people actually eat farm-raised rabbits.

Starting small is a good idea in any business. You just never know how profitable the business will be going in, and going in full bore and big is a huge mistake which only becomes apparent when things take a downturn.

You seem to have a good head on your shoulders and are asking the right questions. I wish you well in whatever direction you choose.

 

[azbowhunter]

As another whom has been successful and also crushed by being a business owner, there's a couple secrets that i learned along the way.
Everything is business, from when you wake up till you last down to sleep at night.
Develop multiple streams of income in your endeavor. If you can make a buck at it free and clear, its worth investigating.
Waste nothing. Think about everything associated with your industry, and its byproducts. Of all that, what markets will you need to have access to to ensure cash flow?
Figure out how to develop markets for everything you produce across the board.
Just off the top of my head, with rabbits an example, you take in feed, water, time, and materials, to produce rabbits, meat, poop, and such.
Rabbit poop is great for gardens, and also worm farming. Gardeners like fertilizer and worms for their gardens, and fishermen like worms too....
You'll have an endless supply of bunny berries, which can be dried out or composted, to make a worm farm. You can sell both as side products....essentially free to you, but something you can make a profit on...
Starting to see my points?