©Shutterstock Distant view of angry rooster looking at left side
You may be thinking, “but PKOM if I want to make a lot of money, then I should have a very large farm because having a large farm means I make more revenue hence more profit.” But you should understand that growing your business comes at a cost. Firstly, growing your business may increase your workload since, by that time you have more customers to take care of, you need to manage more employees and also ensure that all equipment is running efficiently. Furthermore, large businesses tend to have larger overhead as compared to their smaller counterparts. For example, if you rear layers, some costs you will incur include feeding, utilities, etc. Let’s say you already rear 200 layers and make an average monthly profit of GH₵700 from selling eggs. You are quite impressed about how lucrative the business is so you go in for 300 additional birds. With the additional 300 birds booked, it is estimated that your average monthly revenue will be GH₵ 5,335.9 while your expenses are expected to be in the region of GH₵ 7,069. At this rate you are burning through GH₵ 1,733 per month or GH₵ 20,797 per year, meaning if you fail to raise GH₵ 20,797 in that year, you can kiss your farm goodbye.
Conclusion
I am by no means implying that you shouldn’t grow your farm but what I’m warning you about is that there are costs involved in larger operations so always make sure you do due diligence and analyze the financial situation of your farm before any attempt to scale up operations.
Pkom 