Expert advice

Profitability can be found in projects a little different from the ordinary.

And there is more at stake when stepping into a previously unexplored market.

The Gill family’s first step was to recognise the importance of finding a niche product, enabling them to add value to what they produce; something that they felt unable to achieve with their dairy herd.

They have taken control of all aspects of the supply chain from production to marketing.

This has helped the business take ownership of variable costs allowing accurate budgeting with fewer risks.

In this case, an overdraft facility was ideal.

Offering funds as and when required while accruing interest only on the outstanding balance, this facility can be uplifted in to a longer term loan once their needs become more predictable.

Ongoing uncertainty in farming causes many of our customers understandable concern.

The Gill family business demonstrates the value of utilising existing skills, adequate project research and sound business planning in establishing financial stability.

A business plan should outline the market for the new diversified business.

This should form the basis for producing realistic forward budgets including a cash-flow projection, identifying any borrowing requirements.

This will enable the bank to provide the most suitable form of lending to meet the requirements f a new venture.

For more on how to develop your business to its full potential, speak with your local NatWest Agricultural manager, or call 01332 222 888