A Business Plan for Bee Keeping free essay sample

Alison J Smith Small Business Project I’ve never really put much though into the idea of owning my own small business. Although I have tremendous respect for the entrepreneurs that take that risk. Everyday at my job I work with small business owners and my mother even owns a small professional dog grooming business. They work very hard to keep their businesses afloat in tough economic times like these. Owning your own business might be rewarding but it is by no means easy especially when you are just starting out. That is why I will hopefully run my own small business but perhaps only when I retire or if I leave the workplace to have children later in life. My business has a low profit margin, and it would be extremely difficult to survive solely off my businesses income. The business I would like to own someday would be to own an apiary (keeping honeybees). We will write a custom essay sample on A Business Plan for Bee Keeping or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page There are three classifications of Bee keepers; hobbyists, sideliners, and commercial keepers. Hobbyists usually only own a few hives and are not usually profitable because of the large initial cost of buying the bees, and buying/building the equipment. Sideliners usually own enough hives that they are able to make a profit, and commercial keepers own several hundred or thousand hives. Only about 5% of beekeepers are commercial keepers but they product about 60% of the worlds honey. Someday, hopefully next year, I am going to start keeping bees at a small hobbyist level, but ideally I would become a sideliner someday and own over 100 colonies. I’m still thinking of a name for my business. Compared to many small businesses, bee keeping is relatively low operating costs. Startup costs are the most expensive part of bee keeping and that is what keeps many hobbyists from becoming profitable. Generally for the bee keeping beginner you can but very basic hives, supers, smokers, and suits for under $200. Many beekeepers make or buy used hives to save money. The bees themselves will run about $100 for 3lbs of bees including one queen. Medicines, additional food, additional smoker fuel will all cost extra, however even if you buy top of the line new hive and additional bees startup costs will be under $500. Honey is generally low profit but the price can vary greatly depending on the type of honey, and the geographical location. Organic honey in Europe sells for about three times more in the US because the demand is so high. In New England, raw summer wildflower (dark) honey can sell for about $8 a pound, and raw spring blossom (light) can sell for about $9 a pound. Flavored honey (based upon what flowers the bees are collecting from) like orange blossom, gallberry, blackberry, blueberry, buckwheat, and tupelo can cost upwards of $9 a pound. And crystalized or creamed honey which is raw, unfiltered can run upwards of $15 a pound. Royal jelly, beeswax, and bee derived products like wax candles, skin creams, lip balms, soap can be produced cheaply. Mead (honey wine) can be fermented and sold in some states for between $10 and $100 a bottle. In this area of the country, each hive can make between 150 to 200 pounds of honey depending on the number of bees and the length of the season. If you harvest too much honey from the bees and there is a long winter you could lose your whole investment. Break of profit (Gross) Honey produced (lbs): 100 Sale price (per lb): x8. 50 Gross Sales one season: $850. 00 After including the prices for packaging, farmer’s market booth fees, insurance, and equipment the net profit can be very low if not a profit loss. Most bee keepers run small ‘doing business as’ operations, and do not carry insurance because they feel safe in only selling to friends and family. However, if you sell your honey at farmer’s markets or at a farm stand insurance is a good idea. Policies vary greatly by state. Many private bee keepers are protected by their homeowners insurance against damage to their hive, but if you are selling honey you are not protected against lawsuits for tainted honey, allergic reactions, etc. Many insurance companies offer ‘incidental farming liability coverage’ which can range from lower than $100 a year up to $500 a year. Because honey producing bees do not swarm and are generally docile (unless you attack the queen) lawsuits over stings are not as prominent as you would think and almost never successful. Keeping the ive on private homeowner’s insured property and putting up a sign is enough protection for many small time keepers. Farming can be the smallest of all small businesses. But it is possible to become profitable. You have to know how to make money and how to protect yourself from liability. You must also be willing to but in a lot of time and capital into starting up a small business. I believe that my small business could be profita ble on a small scale because I have the tools needed to operate both a hive and a small business.