Starting a ranch is no small task, but if you’re considering it, odds are you’ve been thinking about it for a while. It’s important to do things the right way to get yourself and the production set up for success later on. Taking the correct legal actions now can save you from a headache later, and can help protect you and your farm from legal action against you. Today, we’ll dive into some steps to start with when opening your business. For more advice for ranchers and industry news, visit the Dark Hammock Legacy Ranch blog.
Self-Examine
Owning a business is hard work, but owning a ranch is a special type of labor. Before you dive in headfirst, ask yourself if this is something you want. You’ll be giving your whole self to this, especially in the beginning years and leaner years as prices fluctuate. Through thick and thin, will you stick by this decision? Remember to lean on those around you for support!
Develop a Business Plan
Oftentimes developing a business plan can help illuminate areas which might need more planning. Business plans should illustrate funding and financial aspects, like who is providing startup funds, how they’re getting paid back, and how you’re making money. This should include any information you have about land space or if that will need to be purchased. Where are you getting cattle stock from? How does your farm make money – is it just beef sales, or are there other methods of income, like rental of event space? If a hurricane shuts down operations, what do you do? All this and more should be written in your business plan.
Make it Legal
Work with a lawyer and a tax expert to ensure you’ve got everything ready to go on the paperwork side. Determine if you want the business to be listed as a sole proprietorship or an LLC. Professionals can help you make the decision that’s best for your business goals and assets.
Come visit us at Dark Hammock Legacy Ranch to learn more about our business. Whether you’re new to ranching or have been part of a family ranch for generations, we welcome you to the family.
