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1) You won't get rich quick, but growing your investment exponentially
in the long term appears very likely if you're willing and able to fully
embrace the lifestyle for 5 to 10 years.
2) Although there are four “revenue
events” in the Alpaca industry
(livestock sale, stud fees, fiber
sales, and product sales), … by
far the majority of your income will
come from sale of livestock.
3) Because the income comes largely
from livestock sale, you'll need to
reach a critical mass in your herd
(about 15 to 20 Alpacas) before you
can generate a substantial income.
Prior to reaching this level, it's
usually not a good idea to sell
too many offspring because it interferes
with your ‘production capacity'.
Generating income requires that
you sell your females … and if you
sell too many before your herd is
large enough, you won't be able to
increase in size as fast by breeding)
4) There are a number of significant
tax benefits and write offs, which
vary from state to state. You'll
need to consult with a certified
accountant to advise you in particular,
but the government usually provides
incentives to make it easier to get
started, as long as you treat your
alpacas as a BUSINESS.
5) Although there are a variety of
ways to reach critical mass, how
much you invest in a quantity of
live stock to start with, and how
avidly you engage in the lifestyle
are the two most important factors.
Theoretically, it's possible to buy
your way to critical mass right off
the bat … but this might also
overwhelm the inexperienced Alpaca
investor)
6) You don't necessarily have to
have the land, or the money in the
bank to get started. Options for
boarding (“agisting”) and financing
your initial Alpacas are available
from most breeders.
7) You can (and probably should)
insure your Alpaca investment at
an approximate cost of 3% of the
value of your herd, per year. (At
the time of this writing).
8) Generating a 6 figure income
each year is realistic if you're
willing to grow your herd to 35 to
40 Alpacas. Some farms do a lot
more than this, and 7 figures is
not impossible.
9) We didn't run across anyone
who lost their initial investment
in Alpacas … but, as with any
investment, this is always a
possibility. (It's probably less
common in the alpaca industry because
proven females should multiply their
values by producing 7 or more offspring
over the course of their lifetime).
10) If you're only in it for the money,
… you might be better off doing something
else. But if you love and passionately
embrace the lifestyle, the money should follow.
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