SeaboltFamilyFarm OP t1_j1o6os6 wrote on December 26, 2022 at 1:00 AM

Reply to comment by GrannyLow in pasture raised meat and poultry? by SeaboltFamilyFarm

Because after selling 500 birds you have to buy them again to sell again

GrannyLow t1_j1o86wo wrote on December 26, 2022 at 1:14 AM

Which will then gross you another $11,250 which will cost you $0 because you already accounted for that expense with the last batch?

That's not really how that math works.

This is going to sound a little ass-hole ish but I don't mean it that way. If you are going to try to make a living like this you really need to get a better handle on the numbers. A lot of small businesses fail only because they suck at keeping books.

SeaboltFamilyFarm OP t1_j1o9263 wrote on December 26, 2022 at 1:22 AM

Well you're wrong though? I have to buy the feed in bulk for the next batch then I have to purchase the chickens? I accounted for the original birds and then the next batch? When you buy an animal that doesn't reproduce you have to make the purchase again? Which comes from the profit of the last batch?

GrannyLow t1_j1ockc4 wrote on December 26, 2022 at 1:53 AM

Batch A revenue - batch A expenses = batch A profit

Batch B revenue - batch B expenses = batch B profit

You accounted for both batch A and batch B expenses in batch A, which is fine, but you can't account for batch B expenses again in batch B profits. So batch B profit is now the full $11,250. Otherwise you are double dipping.

In other words you are subtracting the cost of 1,000 birds from the revenue from 500 birds.

SeaboltFamilyFarm OP t1_j1oe036 wrote on December 26, 2022 at 2:07 AM

Yes, but as you mentioned I went over most cost I didn't add in maintenance, I also didn't add in help butchering, brooder costs and electric also bedding costs I just did quick math to show that I'm not making millions but yes batch 2 makes almost double what I bring in on batch 1 and batch 3 all the kinks are worked out for the year and the weather can be better if it's not super wet or super dry lol there are a lot of variables that can't be accounted for but batch 1 doesn't make much, batch 2 makes a little and batch 3 generally sets us up to make much needed improvements, update equipment, maybe someday expand or hire some help so yes there is money being generated but 99% goes towards the farm and making it better like I said not getting rich but expanding is always happening like I mentioned we want goats for kids and dairy, we want more egg layers, we want more pigs, we want better buildings equipment and one day I'd like to quit my off the farm job that subsidized the farm and just farm but in order to do these things money has to be made and I have to work really hard at producing the best products I can and sell them to people like you but as of right now off the farm I make 45k and on the farm I break even with updates and buying and selling animals to make my dream come true of having a regenerative and prosperous farm!

the_honeyman t1_j1od1zg wrote on December 26, 2022 at 1:58 AM

You're still double counting the expense of buying the new birds.

I knew something was off with your numbers, but I couldn't quite place it (and frankly didn't care enough to try earlier). They're fine for the initial batch, if you want to count the expense for the next batch in with the first, you can't then take it out of the next as well.