| Goal |
How to get there |
Reasons |
| Supplement current income by concentrating
on breeding and selling Alpacas with the goal of selling one Alpaca within 2
years of operation. |
Create a professional website immediately indicating that you are "in
business" and update with prices six months prior to the time that you wish to
sell your first alpaca.
Place ads in national publications six months prior to the time that you wish to
sell your first alpaca.
Attend shows to "build your ribbon collection" to show that you are a serious
alpaca breeder.
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Research has shown that it usually takes six months from the time that you start
marketing your business to make a sale.
More than 90 percent of your potential customers have internet access.
Participation in shows is a marketing tool in itself. In addition,
buyers will pay a higher price for prize winning alpacas.
|
| Replace current income of (insert your income here)
within 4 years |
All of the above plus
Make sure that you purchase enough animals to meet your goal. This may be
your initial purchase, or ongoing purchases. Do the math!
Create an email and "snail mail" campaign to promote your business as soon as
you are ready to sell your first alpaca
Participate in events where there is the opportunity to introduce alpacas
to potential buyers that either have not heard of the alpaca, or have
heard of them but have not followed up.
Keep active in both the local community, as well as the alpaca community.
|
The size of your herd is directly related to your future income
possibilities. If you feel that an average bred female is worth $15000,
and that 50% of your offspring will be female over a period of time, and that
it takes 18 months for a female to be ready to conceive, to make $150,000 per
year, you will need to sell 10 females per year, and have 20 pregnant females
18 months prior to your goal date.
Even if you have animals to sell, if nobody knows about them, you will have a
great herd but no buyers. It takes a long time for people to realize that
you even exist. The more that you do to help them along, the more
potential buyers you have.
|
| Diversify our investments by moving out of
the stock market and into a business where we have more control over the future
value of our investments. |
Determine how comfortable you are with your current investment strategy.
As with any investment, there are risks. It's probably not a good idea to
mortgage your house or tap your retirement savings, although many have done so
successfully.
Don't risk what you can't afford to loose.
Make sure that you have sufficient sources of income to cover your day to day
operating expenses.
|
Unlike a stock investment, where all you loose is what you invest, there are
ongoing costs associated with running a business.
Although stocks may go up and down, they seldom go to zero. Stock options
are another story. If you have stock options as part of your employee
compensation package you may want to lock in the profits at a high price and
use them to invest in alpacas. The cost of the alpacas are deductible,
subject to IRS rules, and can offset all or a portion of the gains of your
stock options.
There are always unexpected events that occur. Make sure that you have the
ability to "Stay afloat" if you rely on outside income. Unlike stocks, it
takes time to sell an alpaca. If you have to sell in a hurry, expect to
receive a significantly discounted price.
|
| Supplement current income by selling Alpaca products
to the public, either made from our fleece, or obtained from other sources. |
Look into what it takes to hand spin your fleece.
Look into "mini mills" that will turn your fleece into yarn.
If you are a knitter, or know someone who is, you may be able to create and
market your own "hand made product" line.
Search for alpaca product vendors.
Look for various levels of quality. Many products cater to the luxury
market, but there are less expensive "rustic" products available.
|
The closer to a finished product, the higher the profit. A pound of raw
fleece may sell for $3 per ounce, or $48. A quality throw made out of
that same fleece will sell for $150 or more.
There are many vendors selling wholesale alpaca products. Even if you are
selling some of your own products, the demand may be greater than you can
provide.
|
| Provide breeding services, either through the birth
of a quality male proven in the show ring or by the acquisition of a
quality herdsire with 3 years. |
Bring and show your males at Alpaca shows.
Look into 1/2 interest in a prize winning alpaca in areas outside of yours.
Learn to recognize the quality attributes of a herdsire.
Don't assume that breeding your female to an award winning male automatically
qualifies him as a herdsire.
Either learn how to breed and confirm a pregnancy, or find a vet that can
help you in the process.
|
There is much money to be made in the breeding business, but along with it comes
a lot of responsibility.
It is not unusual for a herdsire to sell for $50,000 or more, and many are well
in the six digits.
You are responsible for the care of the female, and usually the female's cria
when the female is at your ranch. When everything goes just right, you
might have the female back in 2 months, but in many cases it takes longer.
If you have the background to do ultrasounds, blood tests, and other procedures
necessary to confirm a pregnancy, then you may consider doing these tasks
yourself. Even if you do, you may want to consider having a vet do the
job. This shows a high level of commitment to the customer, and your vet
may be more willing to help you with emergencies if you also give the vet some
of the routine work.
|
| Live in the country but not so far out that daily
activities such as shopping and restaurants will be located within 5 miles and
commuting to work will be less than 1 hour. |
Research where you want to live, paying particular attention to vets in your
area. If you live far away from the nearest vet willing to work
with alpacas, you are at risk of loosing an alpaca simply due to time.
Try to live in an area that is easy to get to. If you are hard to find, a
potential buyer may look elsewhere.
|
Ideally, you will have a partnership with a qualified alpaca vet. Second
choice, find a vet that is willing to learn about alpacas.
If you are so far off the beaten path that potential customers cannot find you,
you will have a difficult time getting them to buy from your ranch.
|
| Travel and increase our knowledge of Alpaca history,
Alpaca care, and the Alpaca industry by attending Alpaca related shows and
events. |
Research alpaca shows and events.
Attend seminars, both at ranches and at alpaca events to increase your knowledge
of the species and the industry.
|
Knowledge is power. Although nobody has the perfect business plan, the
perfect health plan or the perfect way to raise your livestock, the more you
know the more success you will have. There are many experts in this field
that have completely opposing views. You need to know enough to make an
informed decision on how to raise your herd, and run your business. |
| Provide our children with the opportunity to work with our
herd, both on a day to day basis and through showing Alpacas in the show ring. |
Keep the children involved.
Let the children show the animals.
Teach the children what you know, and ask that they contribute to the business.
|
Alpaca ownership can easily become an obsession. Many owners feel that
the investment is so high that they do not want to risk a mistake by the
younger family members. If you involve your children early, and teach
them what you know and learn, they can contribute significantly to the
business. Even if Alpacas are a significant investment, your family is
your most important investment. |
| Provide a way to retire yet still be active in the future. |
Determine how much income you will need for retirement
Determine when you want to retire.
Know your limitations. If you have or anticipate health issues, make sure
that your budget includes help.
|
In order to determine your future, you need to estimate your future needs.
When you retire may be dependent on when you have the funds to retire.
It may be that you can contribute significantly to the alpaca ranch, but
not be able to do it all. Recognize your limitations.
|
| Become active in farming activities, especially the
ability to provide quality forage to our herd. |
Determine how to identify quality forage. Hint: there are tests available
Determine what it will take to prepare your land to produce quality hay.
This may require significant upfront work.
|
By knowing what you are feeding your alpacas, you can control their intake and
provide them with the best possibility to thrive and produce quality fiber.
Depending upon your acreage, you may be able to provide other alpaca ranchers
with quality forage not available elsewhere and provide another source of
income.
|
| Become recognized in the industry as a trusted breeder,
providing the utmost in customer support, quality products, and public support
for the Alpaca industry. |
If you don't already have the skills, learn how to treat customers in a manner
that keeps them coming back to you.
Give your customers the best service, support, and quality product.
|
Without customers, you have no business.
It costs 10 times more to get a new customer than to keep an existing customer.
Customers can be your best salesman, and they ask very little in return.
Treat them right!
|
| Provide education to the Alpaca industry through
literature, on site education, and innovative methods to manage an Alpaca
business. |
Provide informative information on your website
Create a "How to" presentation and present it to potential alpaca owners.
|
The internet is the first place that a potential alpaca owner is likely to see
you.
By publishing what you know and have learned through experience, you gain
business credibility.
Many potential and existing alpaca owners are searching for additional
knowledge.
|
| Actively participate in the future of the Alpaca industry
by volunteering for Alpaca related events, both sponsored by our company, and
sponsored by regional and national Alpaca groups and organizations. |
Search for volunteer opportunities at schools, festivals, and similar events.
Arrange to present at professional meetings.
Be prepared to pay for a booth at some of these locations. Others will
gladly have you speak for free.
|
Visibility is the key to successful marketing.
Many professionals are not familiar with alpacas.
Participating in the industry shows your support, and gives you additional
credibility.
|
| Become familiar with and understand how the alpaca fleece
is turned from raw to finished product. |
Attend fleece seminars.
Research companies that can turn your product into yarn.
|
Fleece is the primary product of the alpaca.
Most potential alpaca owners will want to use or sell their fleece.
If fleece is the primary product, you need to be able to explain it's value
|