With the sharp rise in Agritourism, record numbers of people are now visiting the countryside keen to experience the farming lifestyle.
To tap into this new market, many farms have shifted from solely relying on traditional farming to offering new products such as Farm Tours and experiences, shops and cafes or visitor stays.
For many farms, this has generated an invaluable second source of income. However, there is major work required to transition into Agritourism and a raft of hidden costs to contend with.
From visitors there are expectations of proper facilities such as well-maintained toilets, sufficient parking and proper accessibility access. For a farm previously unused to welcoming visitors this can require significant capital outlay at the outset to ensure visitor expectations can be met.
Aside from public expectation, complying with health and safety legislation whilst bringing visitors onto a working farm naturally creates a heightened level of risk. This requires careful planning and consideration and ultimately additional costs in the form of proper advice and insurance.
Finally, the costs of staffing any new venture needs considered especially when faced with such a challenging rural labour market and recent increases in Employers National Insurance. Even if no new staff will be brought on, many business owners do not factor in the cost of their own time both from a personal and commercial perspective. When running a business, It’s far too easy to overlook the late hours spent ensuring all runs smoothly.
Overall, there are a number of hidden costs and challenges associated with starting a new Agritourism venture. To ensure success, it’s vital these be considered upfront and our Agritourism experts at EQ can help with this.
With a wealth of sector experience, we can provide advice on how to properly manage these costs and plan around them to ensure there are no unexpected surprises. From offering tax efficient planning around business structuring and capital allowances through to helping prepare realistic business cashflows and projections, EQ can work with you to help turn your idea into a successful business.
Should you be considering entering the Agritourism sector or already have an Agritourism business and need advice, please get in touch with our experts and we’ll be delighted to help.
To speak to a member of our team: Contact Us – EQ Chartered Accountants