Expert Advice

Diversification is an essential option to provide an extra source of income and improve profitability for existing farm enterprises.

But it is not always that simple.

At an early stage, Jim Strathern recognised the need to develop new income streams outside his traditional farming activities.

He also needed to ensure his expectations were realistic before taking the plunge, especially as he would be entering uncharted territory.
 
Exhaustive research of a new is vital and Mr Strathern tested the waters on a trial basis before pursuing his project on a larger scale.

Early dialogue with a variety of sources is equally important to the success of any diversification project.

Planners, accountants and the bank need to be consulted on the merits of the proposal.

Devise a business plan and consider any additional sources of available finance, such as rural enterprise scheme grants.

One of the best sources of finance for such a venture is a flexible business loan.

This allows payments to be deferred until a project is fully operational by way of a capital and interest “holiday”.

Funds can be drawn as and when required and flexible repayment options can follow.

Mr Strathern’s is a unique venture and not everyone will achieve what he has.

But this is a clear example of an innovative approach to a non-farming service and with patience, careful planning, support should ensure the ongoing profitability of the overall enterprise.

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