How to Run an Irrigation Business Smoothly and Effectively

Running an irrigation business comes with challenges such as correct market analysis, record keeping, employing the right talent, acquiring new technical skills, upgrading existing technology, and this list goes on. 

The marketplace in irrigation has strong competition and uncertainties. Despite all the odds, an irrigation business can run smoothly. In this blog, we’ll share how to run an irrigation business with less hassle and scale it too. 

You will also learn how to maintain a steady business no matter if it is just launching or already in operation. 

What Is an Irrigation Business?

An irrigation business is a private corporation that helps in applying controlled amounts of water to agricultural land. It is a business that facilitates the agricultural sector through smart water-saving technology; technology that can keep a check on the weather, water evaporation rate, soil monitor, sprinkler systems, irrigation software, lawn care, and schedule water. 

The number of water supply and irrigation companies has gone up over the years. In 2022, there were 46,148 such businesses across the USA. An increase of 1.8 percent in comparison with 2021. If we go by this, the number of irrigation companies is expected to rise in the upcoming time. 

How to Write an Irrigation Business Plan?

Starting a business requires in-depth market research and planning. If you have a significant business plan in hand, then your chances of success are automatically raised. For irrigation businesses, a business plan is a good starter for figuring out distinct needs and supply conditions and getting access to target market data. 

An irrigation business plan is similar to any other business plan but with a few industry-centric modifications. The planning process involves the following:

1. Researching the initial and ongoing cost of an irrigation startup

On average, starting an irrigation company can cost more than $10,000. Businesses can find out their estimated cost by calculating expenses on employee salaries, licenses, taxes, equipment like sprinkler systems, insurance, office space, and utilities. 

2. Identifying demographics and irrigation service demand 

The next important step is to identify the geographical location. Followed by a determination of the market demand for the product. 

3. Finding the right mentors

Finding the right mentors to run an irrigation business

To gain knowledge about irrigation companies, you need to find mentors. People who are experienced and ready to share their wisdom. Contact such folks. Through them, you may receive surprising insights that you have never known before.

When you are done with the above steps, you’ll be clear about the feasibility of your business idea. You’ll also be able to draw a fine irrigation business plan for your own company. But it is only the tip of the iceberg. 

Launching an irrigation business does not stop at planning. Registering with the authorities, opening a business bank account under the business name, and acquiring business permits and licenses – there’s a whole process an irrigation business goes through. 

Pros and Cons of Irrigation Business

An irrigation business demands effort, dedication, passion, and patience. This is guaranteed to be tiresome. That’s why it’s necessary to know both the pinpoints of an irrigation business before investing money and time. An irrigation company has its pros and cons. There is no such thing as easy business life. There are things you need to see before getting started in the irrigation service sphere.

Pros of starting an irrigation business:
  • Become an irrigation expert: You’ll strive to be an expert in your field, building credibility among buyers in return. 
  • Join the local community: Running an irrigation company opens doorways to the local farming community. Small business owners work on the ground level and establish a family-like connection with the customers. 
  • Low cost of starting an irrigation company.
  • Retain customers: Once customers invest in your product, they usually come back.  
  • Plenty of earning potential.
  • Easy business model. 
  • Be your own boss: You are in charge, the decision maker, and the operator of your business.
Cons of starting an irrigation business:
  • No benefits: It is comparatively difficult to get insurance and avail its benefits for an irrigation business.     
  • No safety in the business.
  • More liability: Insurance premium comes at a high rate for such a new business. 
  • Lack of stability for employees.
  • Losing motivation is easier: Working in an irrigation company can create boredom and stress.
  • High taxes in the irrigation systems or sectors. 
  • Dependence on phone calls for clients by small business owners.

What to Do for Long-Term Profit in the Business?

Profit determines the future of a company. The interest of investors, stakeholders, banks, customers, and partner businesses revolves around the revenue generated. Most businesses aim to boost their profits. It is possible to ensure long-term profits in the company by keeping certain key elements in check. 

Long-term profits help a company in the long run. They are focused on assets along with business planning. All good for business from a futuristic perspective. You can establish a mechanism for long-term profits in your business by working on the following: 

1. Proper cost management

Proper cost management to run an irrigation business

The cost of a product determines the chances of a sale, customer retention rate, and market demand. It becomes necessary to set an adequate cost. Through proper cost management, businesses can bring the cost to a reasonable level where production and supply expenses are also under control. The process of cost management takes place through the following steps: 

  • Understanding the financial structure
  • Adopting adequate budgeting 
  • Rethinking fixed cost 
  • Decreasing variable cost
  • Shifting to reliable software 

A lessened cost always attracts both new and existing customers. Hence, benefiting the business and retaining high profitability in the end. 

2. Expand your business market 

Making a shift to a new market is a risky process but it can be quite rewarding for a business. Expanding to a new marketplace has been a game changer for many businesses. You can start with thorough market research. 

Adapting your existing products according to newly added prospective clients. Use social media platforms to spread the word among target customers. Do partnerships with small businesses. Widening your customer base will help your business in acquiring new customers and additional benefits in the long term.   

3. Hiring the right people

As simple as it may sound, hiring the right person to do the right job is going to be beneficial for the business. Recruiting employees that are specialists in their fields will lead to tasks done perfectly. Assign one job department to one person. Avoid stuffing employees with more than one job as it’s going to stress them. Improve your hiring process because of the following reasons:

  • Saves your time.
  • Easy access to growth: The right employees will push the company to the right business stand.
  • No employee training: You don’t have to train employees as they are already trained. You can save your training budget for good business sense. 
  • Confidentiality: Getting trusted people in the business can save the company from any form of misguidance and misinformation. The right employee will always maintain work confidentiality, which all business owners need. 

4. Motivate your employees

A motivated employee is the key to a company’s success. Give time to relax, socialize, and have fun in the office space. Motivation drives positivity in the organization. It makes employees healthy and brings overall productivity to the business side.  

5. Keep innovating in your business

Keep innovating in your business to run an irrigation business

New business ideas are essential for any business to actually grow. A business without innovation is bound to fail. It’s often practiced to stay open to more ideas in business. These can be related to products, business models, business strategies, management, and systems. Innovation can happen in four major forms:

  • Architectural innovation: Innovation pertains to the improvement of a product that aims to sustain its position in an existing marketplace.   
  • Disruptive innovation: Innovation in technology or the latest business model that disrupts the current market.
  • Incremental innovation: Innovation that’s gradual and steady. Products and services keep improving throughout time. 
  • Radical innovation: Innovation that brings technological breakthroughs. It transforms industries while creating a new marketplace. 

6. Better customer care base 

For a business, its customers are its true treasure. Maintaining a good relationship with your customers can help your business in the long run. A better customer care base will convey your values to your audience, build customer loyalty, and retain customers. Keeping existing customers happy will drive new customers along. Thus, improve your customer care base by:

  • Personalizing customer service and messages 
  • Understanding customer needs of existing and new customers
  • Installing an easy communication system
  • Seeking and promoting customer feedback 
  • Empathizing with customers

7. Track progress 

Setting goals and keeping track of those goals are vital for every organization. The goals provide businesses with a vision. But if you are averting tracking your status on that vision, then your business is missing out on the following benefits:

  1. Boosted productivity
  2. Effective management 
  3. Improved budget
  4. Motivated team players 
  5. More transparency 

Manage and Grow Your Irrigation Business Smoothly

Save time, stay organized, boost productivity and delight customers with our simple-to-use irrigation job management software.

FAQs

It is required for irrigation business owners to establish themselves as business entity. Either fill up the form for LLC or hire an LLC service. Then apply for an EIN to register for taxes. Registering for taxes is mandatory before starting the company. Other than LLC, you need a business bank account with the business name.
Yes, acquiring a license is a must for an irrigation startup. Operating without a license and permit can also shut down your business. License and permit regulations vary between states in the USA. So, check SBA’s guidelines accordingly.
It’s easier to do business when you know your ideal customer. An irrigation business can have either planters or households as its customers. This business operates largely in rural areas or small towns; locations where irrigation supplies are needed.
Getting an irrigation system for about 40,000 square feet of land may cost up to $4,000. The irrigation software does need regular maintenance which can cost an additional $100 to $500. However, these charges differ for every irrigation business.
As every business requires to get the word out, so does the irrigation business. Marketing itself on social media can prove to be a boon for the business. Instagram, Facebook, Twitter, and Pinterest are social media platforms that are perfect for irrigation businesses. Have a marketing plan to ace the potential customers.
Offering irrigation system repair services is one additional service an irrigation business can provide. It’s also profitable for the business since it opens a new channel for good money.

Conclusion

To run an irrigation business smoothly or start a new business, you need to research the irrigation market, study the demographic, and identify target customers and their needs. After estimating the expected business costs and ability to raise money, start the irrigation business process. 

Keep yourself motivated by connecting to seniors and work professionals in the industry. Your knowledge will be broadened with their expertise. A better understanding of the industry will reach you. 

Businesses can prosper with innovations. An amicable relationship with current and potential customers is healthy for business. An overall good customer experience is going to help your company in the long run. 

An irrigation business can make a profit through social media marketing and expanding the target market. A new marketplace requires not only the introduction of a new range but also the modification of the existing products.

Difficulties arise while running an irrigation business, especially since there are so many tasks to do. But no worries because you have got help from FieldCamp, a one-stop solution to manage your entire business operation from anywhere. 

FieldCamp reduces business chores such as scheduling and dispatching technicians, tracking, retaining customer satisfaction, and preparing a smart report.

FieldCamp enables a business to enjoy maximized productivity in minimum time. 

Want to know how handy FieldCamp is? 

Book your demo today or start your free trial and make your own irrigation business thrive with FieldCamp’s amazing features. You won’t regret it!

Author Bio
author

Gaurang Bhatt

Gaurang Bhatt is a techie in himself with an ability to solve problems technically and present solutions in the form of a product. He is one of the pioneers to curate FieldCamp with his 15+ years of knowledge and expertise in providing solutions to home service industries. Gaurang aims to overcome challenges faced by service business owners through software solutions and blogs.

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