New farmer question

[Dap]

This is a rough time to start buying 400lb. calves. Tough to make a profit with feeder calves bringing these prices. I save a few calves every year to fatten up and sell to neighbors, friends and family. When figuring that I could have sold the calves for $1.30, I made a few $ on the ones I sold by hanging wt., and lost a few bucks on the 2 leftovers that went to the auction.

 

[Susie David]

Two bits worth....
1. Facilities first, then cattle...good pens, fences, alleys,
chutes, feed bunks
2. Feed source, buy or raise. Cost per #, projected cost/pound
of gain.
3. Transport, tractor/trailer
4. Market...how far away...cost of sale.

Don't borrow money, start within your budget and grow with each selling cycle. Don't spend the profit on a new truck, plow it back into the operation.
Develop a sound, detailed business plan, if you need to borrow money you will need one, and it is a good way to track and guide tha progress of the business.
Just my two bits worth.