Key considerations when looking to diversify your farm into a wedding venue
Like many farmers and landowners, you might be weighing up the future of farming and considering diversifying your farm into a wedding venue.
Research carried out by the NFU Mutual in December 2019 showed that 48% of farmers are planning to start or expand diversification enterprises, and 65% of farms in England have diversified already. These diversified income streams can help to provide resilience in uncertain times, secure the business for the future, optimise under-utilised assets and unlock potential skills from within the family.
With DEFRA statistics showing that diversification activity brought in £740m of income in the 2018/19 tax year and the continual expansion of the £10billion UK wedding market it may seem like a no-brainer, however there are some key considerations to think about before investing in this kind of diversification.
Here are three key questions, or discussion points:
Why do you want to diversify into a wedding venue?
This may sound obvious, however really ask yourself why weddings. Why not a farm shop or industrial units?
What are the implications on your time and the core farm businesses activities?
Do you have the skills and resources, or are you looking to bring in a consultancy company or hire an in-house team?
How will you finance it? And importantly what are the implications of the investment on your cashflow?
For a full list of essential questions that need to be discussed before you invest in diversifying into a wedding venue click here.
Adding an additional revenue stream by renting a field for marquee weddings can seem like a quick and easy way to get additional income and enter the wedding industry. However, to be a successful fully-booked venue with staying power careful investment and well researched business plans are needed from the start.
Research carried out by NFU Mutual found that although the majority of farmers who diversified have had success, diversification isn’t necessarily suitable for everyone, or every property, and it has to work with, rather than against the farm. You and your family need to have the right skills, and a thorough understanding of the wedding market, both locally and nationally.
Our initial assessment service is designed as a complete 360-degree view of both the wedding market and your properties potential combined with a detailed report and actionable suggestions.
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