The planning stages:

>Ladies, be prepared for some foot-dragging! I threw this idea out to Hubby, way >back when we first started talking about setting up a dairy. For some reason, it offended him terribly. :-) Don't know if it was just a case of male ego, or if he thought I was trying to pull some kind of a fast one on him. :-) (But it DOES make sense, from a business point of view!)

Listen folks, if you don't have a strong and trusting enough relationship going on between you to begin this venture, forget it. Tell him as long as he is contributing even one minute doing any even tiny bit of work that is dairy related, he is automatically a fully legally sharing owner, even though it may be female owned. The only way he could be excluded is if you were to be able to prove you had paid him for his time.

You are going to have one hell of a time if you can't present a good business proposal. You will need help financially from a whole lot of reluctant people who don't know diddly about what you want to do. You will have to fulfill to their satisfaction any questions they have tKids Share Virtual Dairy hat you qualify in being able to pull off a business as off-beat as this one.

For instance: your resolve and determination. This is most important. The biggest part is making your mind up that this is IT...and then write yourself a memo explaining to a totally DUMB stranger the following.

1. Your experience.
2. Your financial situation.
3. Your location.
4. Your zoning.
5. Your education.
6. Your MARKET.
7. Your support crew.
8. Your patience.*
9. Willingness to work hard and persevere without becoming discouraged.
10. Guts.
11. A ready answer for all dumb questions others will ask no matter what.
12. Accept and then ignore the attitude of men toward women who want to "embark" into the male dominated business world. (More later).
13. USDA regulations, as well as local restrictions.

Are you serious about wanting to start a commercial dairy? Now after you've written your memo this becomes more clear, doesn't it?

This is not going to happen overnight.

List how much you think you need for time and money, then double both. You have to love being in the barn grubbing around more than anything else in the world.

Do a business plan before you go any further, the projection of expenses and income will open your eyes more than anything else you will ever do. Title it "Monthly Cash Flow Projection" at the top. Use these items- there are more than 40, down the left margin.

1. Cash on hand
2. Cash receipts
- (a) Meat sales
- (b) milk sales
- (c) other
3. Total cash receipts, 4
Total cash available
5. Cash paid out
- (a) Purchases
- (b) Gross wages
- (c) Payroll expenses- taxes, etc.
- (d) Outside services
- (e) Supplies -office and operating
- (f) Repairs and maintenance
- (g) advertising
- (h) Car, delivery and travel
- (i) Utilities
- (j) Rent/property loans
- (k) Phone
- (l) Utilities
- (m) Insurance
- (n) Taxes- real estate, etc.
- (o) Interest
- (p) Other- Hay, Grain, one line each
- (q) Misc.
- (r) Subtotal
- (s) Loan principal Payment
- (t) Capital purchases
- (u) Other start-up costs
- (v) Reserve and/or escrow
- (w) Owners wage
6. Total cash paid out, add 5a thru 5w
7. Cash position, subtract 6 from 4
Essential operating data:
- A. Sales volume
- B. Accounts receivable
- C. Bad Debts
- D. Inventory on hand
- E. Accounts payable
- F. Depreciation.
Then make one column across the top for each month of the year, plus total column at the right margin.

Now, how many goats are there in your imaginary dairy? Do you know what the feed costs are going to be from past management?

Well, how does your projection look?

Do you know what it would mean to be a "grade A" dairy? Who do you sell your milk to? Are there milk brokers?

Buy a spiral notebook small enough to tuck into your purse. Write down everything every day. Do research for your area using the county statistics for ethnicity, and poking around club info, personal knowledge, dairy inspectors, and county extension agents. Poke around stores, churches, maps, pick brains. Each area of the country is very different. You may have to move to a better, closer to metro area, WE DID.

Question: We have 5 1/2 acres. Is it a possibility for me to start a dairy from scratch and end up working at home...er barn?

Maybe. 5 1/2 acres with neighbors all around who LOVE the goats as much as you do? If not, plan on moving your operation- they won't change.

Next we can do start-up costs and how to finance the things. (Hello?? Are you still there??) I can guarantee you the fun you will have when later on, no matter who you have run across while "building" they will remember you and address you by your first name, and add "how are the goats?'

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