A repeated question I see getting asked constantly is “how do I make money from my Homestead?” What they are really asking is “How can I make a profit?” as “making money” and “making a profit” is not the same. Regardless that is a good question and one that most of us living this lifestyle are asking. Many of us would love to live this life full time or at least have our efforts show a little (monetary) benefit.
I do not think that there is one path or item that works for everyone, but instead we need to look at a few key areas.
One. Our immediate area. Are we rural or are we near an economic center?
Two. What are our skill sets?
Three. What are immediate assets that we can utilize to make money without accumulating more debt? (As debt is the death of independence.)
Once we have the answers to those three key areas, then we can begin to formulate our plan.
Here on the Broken H, I will answer these questions for myself and in turn hopefully get your brain churning.
One. My area. While I am semi-rural I am also only about an hour outside of Pittsburgh. I have a small city 20 minutes away from me. I also live alongside a State Highway which has good traffic and would enable me to set up a farm stand. (Coming soon!)
Two. What is my skill set? I’m a little bit of a jack of all trades as many true homesteaders are. I’m pretty good at raising animals, I garden, I bake, I preserve, and I can do a little carpenter work.
Three. What are my assets? Well, I own my own farm of 11 acres on which I have the infrastructure needed to raise animals and grow food. I have everything that is needed to preserve foods. I have a small greenhouse and I have livestock such as Boer goats, a breeding pair of American Guinea hogs and Dominique and American Bresse chickens and bee hives. I also have a chicken plucker, chicken tractors to pasture poultry, a mini orchard and a MBA with an understanding of marketing and business.
Now do the same exercise for yourself. Dedicate a note book to it. It helps to see it all in writing. Don’t rush your thoughts and don’t discount Anything.
With the three questions answered, the next questions are: What do I create/raise or do well? and Is there a market in my area for it?
So with all those questions answered let’s talk about opportunities. With roadside frontage and traffic a farm stand is absolutely doable. You just need the items to sell. Sometimes we think we need to “do it all”. I absolutely struggle against that mindset, it’s unnecessary. You do not need to be the person that makes or produces every single one of the products that you sell. Reach out to your network, out to your community/village. (Check your regulations!) Are there other small farmers or small homesteader that also make products they will be willing to sell at your stand? If so, band together and make it happen! The more product you have, the more appealing you are to a customer base. A person may not be interested in exactly what you personally are selling, but they may be interested in what someone else is selling. Try to get products that complement each other. For example, if you are a baker, but you don’t make jams or jellies, reach out to someone who does. Or perhaps you have eggs, but you are not a baker. If you have eggs, bread and jelly you have the start for an excellent breakfast that can be purchased right at your stand. Where a person may not stop to buy a single item, they are more likely to stop to buy a grouping. Think about the last time you went to the grocery store, did you walk out with a Single item or multiple?
Is the item/skill you are considering marketing in demand or is the market area saturated? In my area, a lot of people have chickens, therefore eggs. Hard to get premium prices when eggs are everywhere. So how can I make my Eggs stand out or unique from all the other offerings? At what price point can I sell Free range, Soy-free, Heritage breed eggs with yolks a deep orange and ohh so good? Are you seeing the marketing process here? And at what price point can I be marketable?
A question related to selling I often see asked is “for how much do you (or can I) sell X,Y,Z?” The answer to this question in my mind is, you sell it for its worth in YOUR market area. An example. In a higher economic area, aka urban environment, a person can charge more than in a rural area for farm raised products. I see people selling pasture raised, dressed chickens for upwards of $6/lb where I can only sell the same chicken for $3.50/lb in my area. So a person needs to know their market and price point.
By doing your homework and really studying your area, you can get a good idea of what is in demand and at what price. Can you meet that demand profitably? Do the math. Don’t forget to take into consideration your time in the calculation. Don’t give up! Start with the goal of breaking even on your homestead endeavors, then work towards profitability.
Until next time, Keep moving, Keep striving, Keep praying.