I was at a show a while back and was caught unprepared by a question from a couple trying to decide if they should buy alpacas and start their own business. The question was “What is the one thing you would tell someone looking to get into the alpaca business?”
I answered with the first thing that came to my mind which was : “Only do it if you’ll love it.” They seemed well satisfied with the answer.
In retrospect, I don’t think it’s a bad answer (if inelegantly phrased). And it may be especially important now in a down economy to remember just why you decided to become an alpaca breeder. In the 2008 AOBA Member Survey, 58% of respondents rated Investment Potential as very important (10 on a 1-10 scale) , followed by Business/Income Potential and Tax Advantages in importance. Clearly, the financial benefits to alpaca ownership are top of mind for the majority of respondents.
But before you make the decision to buy those first alpacas and launch your own business, how do you really know if it’s for you and if you will achieve your goals? A certain amount will be a leap of faith but there are many things you can…and should…do before you make that first big purchase:
1. Visit local alpaca ranches: Go to as many as you can in your locale…ten or more. Not only does this give you a great opportunity to get to know the people who will comprise your local alpaca breeder community, but it gives you a preview of what your life may be like . Look at the different ranch set ups carefully. What works, what doesn’t? Can you picture yourself doing what these people do, living as they do? Does the idea of being an alpaca breeder appeal to you more with each visit or less? Do you find yourself drawn to certain animals vs others? Does the idea of scooping poop everyday and handling livestock make you thrill to be doing something tangible and down to earth or just make you wrinkle your nose? Do you have the physical stamina and health to handle farm chores and possibly live removed from conveniences and facilities? Ask questions, lots of them and often the same ones over and over to different people.
2. Find a local mentor: As you visit multiple ranches, did you find one breeder with whom you naturally felt in synch? Did you find yourself nodding to the things they said because they just made sense? Did you feel you could trust them and ask them any question whatsoever and whenever? If so, you may have found yourself a local mentor- the person who will accelerate your learning curve not just about the animals but about the business. This is the person to whom you can turn whenever you feel unsure about how to treat an animal or where to find information or just need to share a concern. This person will support you whether it’s regarding an animal you bought from them or not , but , by all means, you should buy at least once from them. This will most likely happen naturally as mentors most often tend to be people who share the same breeding ideas as you.
3. Fall in love: Remember how important the whole investment potential appeal is? Well, any alpaca breeder who is also a successful business owner also has to have passion. Passion for the animals and their future in this country and passion for the business. It’s this passion that translates into enthusiasm while talking to others and that translates into sales. It’s passion for the animals’ future that makes breeders stick it out through thick and thin. Passion for the business drives people to continually market, participate, and do the extra things that make them stand out. If you have passion for the alpacas but not the biz, that’s enough to have them as pets but probably not enough to make a successful go of it as a business. I guarantee you, falling in love with alpacas is definitely the easy part of the equation!
4. Make a business plan: GROAN. I hear that whenever people think about composing a business plan. But I can’t tell you how important this is before you spend the big bucks. Creating a business plan forces you to go through the diligence of actually laying out a roadmap for the next few years, maybe next decade (with annual adjustments). Think about it. When you do a business plan, you express on paper (among others things ) the unique identity of your business, what your goals are, how to achieve them, the financial resources it will take, and what exit strategy you will have if certain goals are not met. Why are these things important to do in advance? Well, for one thing, as soon as you open your doors for business, you should be marketing. You’re marketing yourself, your animals, your business character. Do you know what makes you different? Do you know what brands you uniquely? A business plan will help you to define that. If you can define it on paper, you can express it verbally and visually. Equal in importance is the outline of your goals and how you will define success. Will you aim for a quick payback on initial investment or opt for maximum growth in your first years? Will you aim to purchase higher end higher cost females or lower cost females with a breed up plan? With your available financial resources, what timeline to positive cash flow and positive return? Are you aiming for a tax shelter or an income replacement (if you are working a job)? How long will it take to achieve these goals with the available capital you have? Do you know how much it will cost annually and what is your path to profitability? A business plan makes you churn the numbers in different scenarios, including formulating an exit strategy based on your committed time in the business. There’s a lot more a business plan can help you with depending on how in depth you wish to go.
5. Research: There’s now quite a pool of books and internet articles on alpacas and you really want to know what it takes to adequately care for these animals, which have been a relatively short time in this country. Learn all you can about herd management from local breeders and your mentor. Work at a local ranch. Help with giving shots, trimming toenails, delivering babies, and what parasites and diseases you may need to protect against. Thse animals rely on you to ensure their well being.
6. Enlist support: Having alpacas is not a single person decision. Make sure your family is on board. Make sure your neighbors are ok with it. It’ll save you a lot of headaches and heartache later if you enlist support from everyone who will be impacted by your decision to bring these animals home.
7. Assess property feasibility: If you already own a property or are planning to buy a property, make sure you check out zoning and enforced covenants. Also do test the water and measure water flow from the well if there is one. If you can, test the soil to see what kind of pasture you will have. Also locate the septic field to see how this affects your pasture/fencing plans and confirm the property boundaries. If your property is hilly, make sure drainage will work well for your barn plans. Also make sure the nearest fire department is in an acceptable distance. All these items can affect the figures that go into your business plan.
Hopefully, this very abbreviated list has your brain working. If everything checks out and you find yourself more and more enthused about the idea of owning and breeding alpacas, you may have found your vocation. Let me be the first to say congratulations and welcome to the alpaca breeder community!
