There are different kinds of moneys in an agricultural business. There are short term debts, such as feed bills, veterinary expenses, bedding and electricity. These costs generally have to be paid monthly. Sometimes banks will call this type of money an operational loan.
Then there is mid term expenses, such as the cost of chicks...... this is a mid term expense, as it will be several months before you get a return on your money invested. Generally though this is a once or twice a year type of expense. You do have to feed them and provide for them for nearly 6 months before you get eggs back..... if you were going broilers, it would be a quicker turn around time period. Chickens do die rather easily, some will and could be a loss to the operation.
That is the big difficulty, you would need banking or a fair amount of money invested for several months to cover expenses before any profit was coming out of the operation.
Then there is long term debt, that would be the buildings and land. These usually are the easiest to finance, because they are stable assets. Meaning the bank can sell them and get their money back if you go broke.
There are trade offs, often time, bigger operations can order bulk feed at a better price(but you need adequate storage to protect it), however, with a bigger operation, you often will need additional help, or perhaps seasonal help. You will need a marketing plan, a financial statement and a business plan.
You generally would want to start with a building on some land, then modify the building it to hold the birds. I am thinking that with what it costs to build a shelter, you could easily be in too deep to ever make much of a profit.
Mrs K
