Many farming businesses continue to face uncertainty. Diversification allows a farm to produce alternative sources of income, potentially reducing the risk on a specific sector.
The range of activities for diversification continues to increase with the sector opening up to a wide range of opportunities.
These include traditional activities along with a range of modern offerings and include:
- Camping and glamping
- Exercise venues
- Renewables, farm attractions, shops and cafes
- Kids play, karting, off roading etc.
- Restaurants, yoga retreats and spa therapy
As with any business, careful consideration should be made before embarking on diversification. This should include considering:
- Cash, resource and investment requirements
- How easy it is to gain knowledge of the sector
- The impact on running the existing farm operations.
- The time requirement and the skills which will be needed. Are they are available internally or will need to be brought in?
We recommend careful planning when considering a new business activity. This should involve conducting a thorough financial and commercial evaluation to determine the viability and potential success of the venture. Additionally, it is important to conduct thorough research to identify and understand the new market you will be entering.
It is also crucial to ensure that your family and team are fully supportive and on-board with the new activity. Their input and commitment will greatly contribute to the success of your endeavor.
If you would like to discuss your requirements or seek further guidance, please do not hesitate to contact us. We are here to provide assistance in helping you make informed decisions for your business.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.