# What is considered commercial?



## blackflag (Apr 27, 2010)

*What is considered commercial. Ok need help with budget?*

Is it a number of colonies or your primary income. I have been messing around with the insects for a couple of years now and would like to get to0 100 or 200 hives. Is anyone willing to share some of your budget rule of thumb with me. thanks in advance. Intially if I could look at it as cost per 100 hives with possible income strategies. As most of the local boys seem all over the board. I have a opportunity to purchase 25 ten frame new boxes, with 8 frame guarantee for 115. The idea being to split and get to 100 colonies by season end. Sounds pretty good but what would the cost be to add equipment and supplies and does anyone have some examples. I understand if I am asking to much info. but the old saying goes your miss 100 % of the shots you don't take. Much appreciated for any positive direction from the group Is the example above possible?


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## alpha6 (May 12, 2008)

Your fixed costs - boxes, frames, tops, pallets or bottoms, etc. should be easy to figure out. You just need to get a bee catalog and do the math. The other thing you didn't mention is are you just doing pollination or honey or both? If you are doing honey you are going to need supers, extrator, spinners, space or shop, etc. so you will need to figure that in . Figure 3 supers min. to start with so with 100 hives you should have 300 supers on hand and that may be short. Lastly, you will need a truck, swinger or use of one, and yards.

On top of that, don't expect to get 100 hives our of 25 in a season. I like to figure it like this. If I have 100 strong hives for splits I figure I can get 70 good spits started. (3-5 frame splits) Given that, if nothing else goes wrong you can get close to doubling your hives but not necessary a honey crop. 

But if you are looking to do it from a business stand point and if you are doing it commercially then you should, I would start like this.

Budget. What is your budget. This is going to determine how many hives you can manage and afford the first year. Remember that buying the equipment and bees are only ONE part of what your expenses should be. Once you start to generate some income, you can expand more and more which should allow you to make more and thus grow your operation. 

Some key things to remember. Don't quit your day job just yet. It will be very though to expand your business and make enough to live on at the same time. Most beekeeping costs are up front, so the longer you are in it, the cheaper your operating costs should be ONCE you stop expanding. Anyway, those are some things to think about. Good luck.


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## Sundance (Sep 9, 2004)

alpha6 said:


> Some key things to remember. * Don't quit your day job just yet*.



Now that is the number one, most important point 
for sure.....:thumbsup:


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## peacekeeperapiaries (Jun 23, 2009)

agreed, dont quit the day job...its gonna be a few years for an operation to support itself and start returning the initial investment


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## hpm08161947 (May 16, 2009)

#2. Don't mortgage the farm on a bee operation.


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## fish_stix (May 17, 2009)

Don't even consider borrowing money to build a bee business. Next year could be a booming year or it could be 100% loss year. It's an agriculture business and subject to weather, pests, disease, and too many other nasties to list.


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## sqkcrk (Dec 10, 2005)

I wouldn't have the business I do were it not for FSA Loans, which are different from Bank Loans.


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## Vance G (Jan 6, 2011)

I built and paid for half a bee keeping operation at 16% interest money the last time Jimmy Carter was President. But I kept my day job and worked my butt off. I had wonderful locations though and low overhead. I worked off my extraction with a commercial guy. Had the ugliest truck in the world and didn't spend a dime I didn't absolutely have to. Ya gotta wanna!!


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## Trevor Mansell (Jan 16, 2005)

alpha6 said:


> ONCE you stop expanding.


Most commercial beekeepers stop expanding when they die.

A bee business is just that a "business" and like most businesses you need access to capital to expand. I wouldn't take a loan out and buy an operation without having the experience and a good foundation to run it though.


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