Entrepreneurial Story: How to Quit Your Job to Farm

Contents:

• Life Transformation: From Engineer to Farmer
• Rethinking and Downshifting: Creating a Goat Empire on 10 Hectares
• 2020: How to Survive the Crisis
• Current Challenges and Prospects for the Farming Business in Russia

Life Transformation: From Engineer to Farmer

Igor, please share how you decided to become a farmer, leaving behind a successful career in the energy sector?

My first education is in engineering in the energy sector, and this is where I began my career. However, in 2002, faced with changes in the labor market, I decided to change my focus and became deputy director at a contractor working with the local water utility. Within four years, I moved to work for a municipal enterprise, which was subsequently reorganized into a joint-stock company with 1,500 employees and an annual turnover of 2.5 billion rubles. In 2009, after receiving a second degree in strategic management, I took the position of development director, earning approximately 200,000 rubles at an exchange rate of 31.83 rubles to the dollar. This experience gave me a deeper understanding of the principles of management and strategic planning in large organizations.

You had a stable job with a good salary. What caused such a significant change in your life?

As development director, I noticed that I was the youngest member of the team, where the other employees were 50-60 years old. Their reluctance to change and new projects left me feeling hopeless. I began to burn out and realized the need to create something unique and high-quality. From an early age, I was interested in agriculture, and I decided to move into farming. This choice became an opportunity for me to realize my ideas and bring a fresh perspective to a traditional industry.

Rethinking and Downshifting: Creating a Goat Empire for 10

How did your journey into cheesemaking begin? What ideas and directions did you strive to implement when starting your farm business? Tell us about the first steps you took in this exciting endeavor and what experiments with cheese you conducted at the beginning of your journey. Your experience and early achievements can inspire others who are just considering cheesemaking. Share your thoughts and discoveries that formed the basis for further development.

My path to cheesemaking was an unexpected discovery for me. Observing the abundance of grass growing on the farm and the goats grazing, I realized that this created excellent conditions for cheesemaking. These natural factors inspired me to develop a new idea that could combine a love of nature and the art of cheesemaking. Cheese made with local resources can be not only delicious but also a unique product, reflecting the characteristics of the region.

I began my career in fruit and berry production and beekeeping. Unfortunately, both approaches were unsuccessful: severe frosts destroyed the plants, and the costs of honey production proved too high.

I decided to purchase Czech goats with the goal of successfully selling goat milk and raising a breeding herd. However, as experience has shown, interest in these products on the market was quite low. This forced me to reconsider my strategies and seek new ways to promote goat milk and breeding in order to attract more consumers and increase demand for the product.

At the beginning of my business, I purchased 30 goats and allocated 10 hectares of land for their grazing. I had limited financial resources for milk processing. Since 2010, I have invested about 10 million rubles of my own money in business development.

At the beginning, many people face various difficulties. These can include financial constraints, lack of experience, or a lack of knowledge in a particular field. Such problems often become a serious obstacle to achieving goals. However, they can be overcome. It's important to develop skills, seek out information, and learn from mistakes. Perseverance and a desire to learn help you find solutions that move you forward. It's also helpful to connect with people who have already achieved success to gain valuable advice and support. Ultimately, challenges become an important step on the path to success, forging character and strengthening willpower.

The main problem was a lack of financial resources. Approximately 60% of the budget was allocated to experiments and training, while access to grants and loans was significantly limited. This created significant obstacles to further development of the project and the implementation of new ideas. The need for additional funding became critical to achieving our goals.

When the farm first started operating, there was no electricity, and for eight years we relied on solar panels to provide an autonomous power supply. This solution allowed us to effectively manage energy consumption and reduce electricity costs. Solar panels have become a reliable source of energy, contributing to the sustainable development of our enterprise.

I realized that to successfully run a business, I needed to develop entrepreneurial skills and not limit myself to knowledge about farming. My experience in the utilities sector did not equip me with the necessary sales skills, so I decided to turn to my extensive collection of business literature for self-education. This allowed me to gain valuable knowledge about marketing, management, and sales, which will help me more effectively develop my business.

An entrepreneur must understand that reality can significantly influence their ambitions. To achieve success, they must be able to adapt to changing market conditions and the external environment. The ability to flexibly respond to challenges and seize opportunities is a key aspect of successful entrepreneurship.

Experience as a development director and a degree in strategic management play a key role in farm management. These skills enable the effective development and implementation of strategies aimed at increasing productivity and profitability. Strategic thinking helps in analyzing market trends, which allows for informed decision-making and adaptation to changes in the agricultural sector.

Furthermore, experience in business development contributes to the optimization of internal processes, improved resource management, and higher product quality. Knowledge of strategic management helps in building a successful team, which is an important aspect for achieving farm goals. Thus, the combination of practical experience and theoretical knowledge significantly increases the chances of success in agribusiness.

Knowledge and experience are important factors for achieving success. The ability to effectively manage time and resources plays a key role, especially in the area of ​​financial planning. The process of creating a product does not happen instantly; it requires a significant investment of time, usually from 6 to 10 months. Proper allocation of resources and competent planning allow you to optimize this process and increase the chances of a successful outcome.

Building your "goat empire" required a significant investment of time. This process includes developing a business plan, choosing suitable goat breeds, organizing feeding and housing conditions. It is important to take into account that successful goat farming requires not only time, but also knowledge, experience, and continuous training. Many farmers spend years building a stable farm that brings profit and joy. Your "goat empire" – is the result of hard work and dedication, which requires constant attention and development.

We began producing cheeses in 2017, selling them to friends and acquaintances. Word of mouth has been a key factor in our success. In 2019, we won medals at the "Best Cheese of Russia" competition, significantly increasing interest in our products. This success became the basis for further development and expansion of our range of cheeses, which allowed us to attract a new audience and strengthen our position in the market.

2020: How to survive in a crisis

2020 has become a real test For many of us. In response to the challenges that arose, I adapted, changing my approach to work and my personal life. Above all, I focused on developing skills to help me cope with change. I began actively learning new technologies and methods, which allowed me to remain competitive in a rapidly changing world.

Additionally, I paid attention to my mental health, engaging in regular physical activity and practicing meditation. This helped me maintain focus and a positive outlook even in the face of uncertainty. Social connections also became an important aspect of my well-being. I maintained contact with friends and family, which allowed me to avoid feeling isolated.

So, despite the difficulties, 2020 became a time of growth and self-development. I learned to better understand my priorities and became more resilient to life's challenges.

This was a serious blow for me. Although I did not end up bankrupt, the situation was almost critical. Wholesale sales ceased, and my turnover decreased significantly. All that was left was inventory for retail, a farm with equipment, a herd of 100 goats, and a complete lack of understanding of the future. I found myself in a situation where I had to make decisions to restore the business and find new ways to develop it.

Did the state provide support during this difficult time?

Agriculture was not included in the list of industries affected by the pandemic. When I contacted the Entrepreneurship Development Fund, I was told that there was no funding for our sector. We found ourselves in a situation where we had to rely solely on our own resources. This reflects the real state of affairs with government support in the agricultural sector.

In 2020, I took a number of measures to optimize the business. First, I analyzed current processes and identified bottlenecks that were hindering efficient operation. Then, I implemented automation of many tasks, which reduced the time spent on routine operations. I also revised my marketing strategy, focusing on digital channels, which resulted in an increase in my customer base. Furthermore, I optimized costs by renegotiating contracts with suppliers and improving inventory management. These steps helped not only maintain the business during the crisis but also lay the foundation for its future growth.

I completely overhauled my business in the current climate. We reduced staff, reduced production volumes, and abandoned wholesale sales. The situation has now stabilized somewhat: we have become a small artisan cheese factory, producing three tons of cheese per season. The average bill is 1,000 rubles, and our annual turnover has reached 2.5 million rubles. By comparison, before 2020, our production volume was six tons of cheese per season, with an average bill of 2,000-3,000 rubles and an annual turnover of approximately 6 million rubles. We adapted to the new conditions, maintaining product quality and focusing on customer needs, which allowed us to successfully compete in the craft goods market.

My perception of business has changed significantly recently. Previously, I viewed it as a way to make a profit, but now I understand that business is a complex ecosystem in which not only financial indicators are important but also relationships with clients, partners, and employees. I realized that a successful business is built on trust, transparency, and sustainability. It is important to be flexible and ready to adapt to market changes, as well as consider the social and environmental aspects of your operations. Effective audience engagement and creating value for customers have become my top priorities, ultimately leading to long-term success.

My perception of reality has shifted, adopting a Zen Buddhist approach: I understand that only current conditions exist, and standing still is unacceptable. I have developed a new business model: I produce, milk, and sell myself. Currently, this format is the only viable one for my business. This approach allows me to control all stages of the process and ensure a high-quality product, which is vital for successful business.

Current Challenges and Prospects for the Farming Business in Russia

The farming business in Russia faces a variety of difficulties that require careful analysis. The main obstacles to successful development include a lack of financing, difficulties accessing modern technology, as well as problems with logistics and product sales. It's important to note that an ineffective government support system and insufficient information also significantly complicate farming. To succeed in agribusiness, it's essential to overcome these barriers by utilizing available resources and adapting strategies to current market conditions.

A key problem for artisan cheesemaking and small businesses is insufficient government support. Despite existing initiatives, the assistance often falls short of these businesses' needs. Effective support could significantly improve the conditions for the development of artisan cheesemaking, promoting higher product quality and expanding the market. Measures are needed to stimulate innovation and train entrepreneurs so that small businesses can successfully compete in the modern economy.

The penetration of sanctioned products into the market is a serious problem that negatively impacts the competitiveness of local producers. Despite official bans introduced in 2014, such goods continue to enter the country, creating an uneven playing field for domestic farmers. This circumstance threatens the development of the agricultural sector and undermines initiatives to support local production, which requires attention from government agencies and society.

Education in agriculture and cheesemaking remains underdeveloped. The quality of educational programs for farmers often falls short of modern standards, and only a limited number of qualified instructors can provide the necessary knowledge. It is crucial to create an accessible online platform for learning the basics of cheesemaking that is offered at affordable prices. This will allow farmers to master new techniques and improve the quality of their products, which in turn will have a positive impact on the development of the agricultural sector.

State support raises many questions, especially in the area of ​​lending to small and medium-sized entrepreneurs. Obtaining a bank loan requires demonstrating a high level of profitability, which is often a challenging task for beginning farmers. Difficulties in accessing financing can be a barrier to successfully starting and growing an agribusiness. Therefore, it is important to consider alternative support options that can help farming enterprises overcome financial difficulties and facilitate their growth. Interest rates on loans range from 11% to 13%, making them unfavorable for borrowers. Experts argue that optimal rates should be in the range of 3-5% per annum. Such conditions contribute to the support and development of small businesses, ensuring the availability of financing and stimulating economic growth. Non-repayable grants are an important source of funding for beginning farmers, but they come with significant requirements. These conditions often include the presence of developed infrastructure and significant financial resources, making grants inaccessible to many new participants in the agricultural sector. Farmers should be aware that competition for such grants is fierce, and preparing the necessary documents takes time and effort. Therefore, before submitting an application, it is important to carefully assess your capabilities and prepare all required materials.

In some regions of Russia, such as the Chelyabinsk region, grants and subsidies are provided primarily to large agricultural enterprises, leaving small farmers without the necessary support. In contrast, in the Belgorod region and the Republic of Tatarstan, the situation is more favorable for small farmers, who have access to various forms of state assistance. This highlights the need to revise approaches to subsidy distribution to ensure a level playing field for all participants in the agricultural market and support the development of small farms.

Farming, despite all its difficulties, provides its owners with a sense of freedom and independence. This process requires significant effort and time, but the opportunity to control their business and directly interact with clients makes farmers key players in the agricultural sector. Every year, more and more farmers recognize their importance and can count on state support, which confirms the stability and development of their activities.

The farming business in Russia, despite existing challenges, has significant potential for growth and development. Growing interest in local products and sustainable agricultural practices is creating favourable conditions for the expansion of this sector. Given modern consumption trends and government support, farms can successfully adapt and find new opportunities in the market.