Opportunity Cost - February 2009

While bunkering down in this economic down turn, many Alpaca Farms are analyzing all the aspects of their business and looking to cut costs to preserve capital. One aspect that goes over looked when we are just worrying about Dollars and Cents, is Opportunity Cost. Opportunity Cost, is the best alternative that is forgone because a particular course of action is pursued. Many alpaca farms are so embedded in the everyday happenings around their farm that they lose sight of their business plans and goals. Everyone in the Alpaca industry is familiar with the saying, "There are only so many hours in a day." when rationalizing the most important aspects of your business to focus in on. One thing we have learned over the years is that you just can't do it all yourself, and while other businesses are bunkering down, it might be time for you to expand and find some help. Unfortunately, the daily farm chores do not directly bring in animal sales or introduce your fiber products into new markets, but they can indirectly if you are able to delegate them out.

There have never been more incentives for Small Businesses and Farms to hire help, and there is an abundance of people in all of our communities who are eager to work, even if it is part time. If you simply can't afford to pay extra help, there are alternatives to hiring and still getting help around the farm. Many college students and high school students in 4H programs would love to volunteer in the afternoons or on the weekends for the experience and school credits. It doesn't hurt to call your local colleges and talk to some professors, or give your local high school's Guidance Counselor a call and let them know who you are and what you are looking for. Many businesses overlook the need to network with their local school systems, but it is important resource and a great way to give back to your local community.

Another great way to get some extra help around the farm is to invite over warm sales leads that have shown interest in purchasing alpacas. Many farms actively get their potential clients helping out on Shearing Days or for a seminar or Farm Event and it is a wonderful way to increase your animal sales potential, as well as give hands on experience to a potential alpaca owner.

As you bring on people to do some of the more trivial stuff around the farm, it frees you up to expand your business. You will have more time and energy to invest in Marketing, Networking with other Local Businesses, planning events and executing goals for your alpaca business. Instead of spending half of your day and most of your energy tending to water buckets and poop piles, focus on how you can grow your business year after year. Look for people you can trust, and are eager to learn about your farm and animals, they might even end up working for socks and animals!

Further Reading:
Employee Selection and Hiring Guide
How to Hire, Train, and Retain Great Employees

What's in the Stimulus Package for our Small Business?

Find out how your farm can take advantage of the recently passed Stimulus Package. There are several changes to Loss Accounting and how it can reduce your tax bill this upcoming April. The government wants you to buy equipment, like Trucks, Farm Equipment and Computers to run your farm and offices and to help stimulate that they are allowing you to write down up to $250,000 in expenditures in 2008, compared to the normal $125,000. There are also new Hiring Incentives in the form of tax credits for hiring employees that meet loosened requirements. There are changes to Capital Gains, allowing people who invest in Start Ups and Small businesses after the bill is enacted to exclude up to 75% of your gains from that investment (after holding it for 5 years). The Small Business Administration has also loosened the purse strings on Microloans up to $35,000 for Small Businesses across the United States.

Find out more about the Stimulus Package and your Small Business:
CNN's Summary of Small Business Changes in the Stimulus Package
How can the stimulus package lower my energy costs?
Recovery.gov - Keep Track of the Packages Progress
Small Business Administration - Ask questions and look up local resources!

United Nations: International Year of Natural Fibers: U.S. Events Currently Planned:

• 3/30 to 4/1 - Technical Workshop:"Natural Fibers - their role in the carbon economy" - Seattle, WA (More Info)
• 6/3 to 6/7 - National Conference: Alpaca Owners and Breeders Association - Cleveland, OH (More Info)
• 10/17 to 10/18 - New York State Sheep and Wool Festival - Rhinebeck, NY (More Info)

For more information and an introduction video on this International Effort, you can visit their Site, or download their Press Kit.

We are beginning to finalize dates for upcoming shows that we will be attending as an Informational Vendor, and doing Fiber Collections. We would love for everyone to come out and say hello, get your hands on some of our new products, and let us haul your fiber back to the mill. This is a wonderful way to save on Fiber Shipping Costs!

• 4/4 to 4/5: The Alpaca Fiber Symposium - Belmont, NC at Gaston College
• 4/23 to 4/26: MAPACA Jubilee - Harrisburg, PA
• 5/2 to 5/3: Buckeye Alpaca Show - Colombus, OH
• 9/18 to 10/4: The Big E - Springfield, MA
• 10/25 to 10/26: Empire Alpaca Extravaganzaa - Syracuse, NY
• More Shows to be Announced!

Find Out how to Participate in Fiber Pickups and Save on Shipping HERE!

We are in the process of bringing back our Featured Farm Store section as a resource for customers who erroneously stumble across our catalog looking to buy retail products. If you carry NEAFP Products, run an Online Farm Store or have a Retail Location / Fiber Nook, we would be more than happy to include you in our certified Retailers Section. Email Us Today!

Showcase your Farm Blog

NEAFP is in the process of re-working our Featured Farm showcase section and we would like to showcase the daily activities of an everyday Alpaca Farmer. A blog is a wonderful tool that allows people to get a closer look at the day to day activities of our favorite pastime and lifestyle, Raising Alpacas. If you have a farm blog we would love to share it with the rest of the community, and build a community of farms across the country. Please email us today with your Farm Site and Blog Information and we will include it in our new section! Email Us Today!