Farm Equipment Selling business in India
Farm equipment selling is a profitable opportunity for any individual. Besides, there are numerous ways you can start a business. According to your investment capability, you can have a plan for opening this business. Here, you can check the comprehensive farm equipment selling business plan guide for your comfort.
Also, the business is money-making both in the rural area and in the suburbs. Agriculture equipment accommodates a wide range of products in different sections. Generally, farm equipment is a different type of hand tool, machine, or equipment that assists in agriculture and farming. Some of the broad classifications are:
- Soil cultivation
- Fertilizing & Pest Control
- Produce sorter
- Harvesting / post-harvest
- Animal Feeding etc.
A step-by-step guide to Farm Equipment Selling business in India
Market potential of Farm Equipment Selling business
Agriculture and farming are the evergreen industries worldwide. As the population develops, the urge for generating more food crops will automatically raise. So, the necessity of agriculture equipment is also growing. Also, people always stare for upgraded and operational equipment for getting a better result.
Secondly, the agriculture equipment manufacturing businesses always desire to establish a well-penetrated distribution system. And you can bang this opportunity effortlessly. However, the Asia-Pacific region is the main market for farm equipment. The biggest consumer countries are Japan, South Korea, China, and India. The rising automation of farming equipment and growing population are the aspects driving the growth of agriculture equipment in this area. Therefore, we can accomplish, farm equipment selling is the money-making business for the entrepreneurs.
Farm Equipment Selling Business Plan
It is important to have some experience before you start the business. If you are an absolute beginner in this segment, then perform some market research. The local market demand for farm equipment is determined by several aspects. These are agro-climatic conditions, locally grown crops, soil fertility, natural irrigation capacity, etc. However, you must verify the need for specific products in your region.
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After acquiring the information, you must craft a business plan. Moreover, you must add the financial projection and marketing policy. Generally, the capital relies on the range of products you want to keep. Determine the marketing and sales promotion scheme. In a full-proof business plan, you must regulate several aspects. These are
- Executive Summary
- Management Description
- Market Investigation
- Organizing & Management
- Product Line
- Financial Forecast
- Funding Appeal
Registration, license, and permissions required for starting Farm Equipment Selling Business in India
First of all, you must register your business. Choose a particular form of the organization as per the ownership and liability format. Later, register the business as per your state law. However, it is majorly based on the area from where you are beginning the business.
Verify the licenses and permission needed in initiating the business. As you will run the business from a retail site, you must get permission from the Government authority. Also, deal with a local tax consultant. You must have a clear awareness of the upcoming tax liabilities and compliances.
The license needed to run this Farm Equipment Selling Business are:
- Registration of your business
- ISI standard registration
- MSME registration
- CE certificate
- GMP certificate
- FDA certificate
- Trade license
- GST registration
- No Pollution Certificate
- No Objection Certificate
- Shop and Establishment Act License
Farm Equipment Selling Business model
First of all, you have to decide the business model. However, there are numerous ways you can sell the items for profits and also the coolest option is availing a distributorship of a reputed establishment. In this option, you can relate to the companies that are considering the channel partners. And according to their guidelines, you can start a business. For every unit selling, you will have a selling commission. And the profit is rewarding in this business. Additionally, the parent company usually bears the marketing responsibility.
Otherwise, you can obtain the product from the manufacturers and sell them with your price margin. In this option, you will be building more profit than the former option. However, this option burdens substantial capital investment for beginning the business. Furthermore, you can also import the farm equipment from other places if you can secure a better contract than the domestic firms.
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Area required for starting Farm Equipment Selling Business
While beginning the business, you must have a retail area. Additionally, according to your product range, you must determine the area. Generally, you should have specific spaces for specific needs. It includes the space for cash counter, display customer sitting provision, and storage.
A roadside space with a wide display window and satisfactory parking space is the ideal place for this type of business. It’s not obligatory to choose a space in the center of the city. Because farm equipment items are not the urge buying products. Even, you can acquire space on the highway also.
Farm Equipment Selling Business Operation
Arrange for the store. You must provide a comfortable inside atmosphere to your consumers. Moreover, keep in mind the proper product display. It is sensible to consult with an interior designer and proceed with a floor plan first. And then arrange the store according to your exact requisite.
Then, you have to appoint the right staff, because you can’t run the company by yourself. However, first, choose the scope of the commitment of staff. Determine their job duties and try for interviewing. Generally, in this type of business, you might acquire a sales team. They will endorse the product and will focus to enhance the channel penetration. Also, you must appoint floor employees, accountants, and a mechanic too.
Procure the appropriate tools for the smooth operation of your business. As you are operating a retail store, you must have retail management software (POS). It aids to operate the business with many MIS facilities.
Investment required to start Farm Equipment Selling Business
It requires minimum investment to start the business and hence this can be considered as the most profitable startup business in the agricultural sector. But you need to be aware of all the processes thoroughly before starting it, simply by researching the details to the know-how of the production process.
Profit in Farm Equipment Selling Business
You can expect a very good profit amount in Farm Equipment Selling business. You can also give that equipment for rent so that you can earn more profits. You can even resale the used Farm Equipments, which even brings more and more profits to your business. It is based on the perfect plan and its implementation. You can earn nearly Rs. 50,000 to Rs. 60,000 per month.
Promotion strategy to increase marketing and sales of Farm Equipment
You must publicize the business. And you will need to check out the low-cost methods to generate convertible leads. Besides, you have to organize the training and display provision to the potential consumers. For large equipment such as Tractor, you have to show the farmers what are advantages they will be having. Also, trade fairs and exhibitions are great areas to promote your business.
Design a website for your company. Put the product list and contact information properly. You can also plan or selling the farm equipment from online websites. However, the long-term success of the farm equipment selling a business is mainly based on the customer relationship and the standard of the products.