As you investigate the wonderful world of Alpacas, you will discover many investment perspectives on the financial potential of our industry. In reality, these new business opportunities are potentially limitless. All types of exciting and rewarding enterprises are awaiting the new North American alpaca breeder. Make no mistake about it, there are very successful fulltime breeders generating six figure incomes and more in the alpaca business. Yes, we did say more! There are also breeders making little more than smiles.
Many ranches have built their business through years of dedication and have invested in a quality-breeding program. Some have made their fortunes through importation and through investment speculation with volume exchange as a goal.
It is important to note, that this is a true livestock business that incorporates some potential and inherent risk. Although the returns can be significant with hard work and dedication, it is prudent to realistically consider the risks. These risks are sometimes unavoidable and unexpected.
However, if you are reading this site at all, you probably have decided that alpacas are of great interest to you and your family. Perhaps alpacas can provide your future with much more than pure investment potential.
While consistent residual income may be icing on the cake, most likely you have simply fallen in love with these creatures. If you are reading this without having the pleasure of meeting an alpaca face to face, you may have your doubts. Once you meet you first alpaca, there is very little you can do to keep from being hooked. If that magic does not occur, it is perhaps recommended that you find another area of interest and potential investment.
The investor looking to make a quick return might be successful in alpacas, but may be more successful on Wall Street. Ours is a long term nurturing business providing multiple benefits and financial rewards that require some dedication and most of all:
Another key element to the success of our industry has been its versatility. With so many different investors, the range of potential business plans is virtually unlimited. In fact, there are hundreds of different ranch profiles and business approaches that are being employed by breeders large and small
In fact, the alpaca investment is completely scalable. Investors and breeders alike can enjoy alpacas at any level of participation that is ideal. There are many levels of quality and many opportunities to enjoy the alpaca lifestyle at personalized levels of risk and investment.
Some ranches do not rely on business plans at all, but rather life style plans that take far more into consideration than simply return on investment. In fact, these profiles are just as important as the business plan in one sense, in that they ensure long-term returns of personal satisfaction. While this may sound a bit idealistic, working from this perspective can help to realistically determine if the alpaca business is right for you and your family. Sound financial analysis along with some good ole fashion honesty can help frame the lifestyle benefits that will be the key to future success.
These lifestyle plans are the real strength of the market because they represent its stability and the true value of our market. In fact, these benefits based on lifestyle rather than cash returns are often just as important to the potential investor. For those looking for more out of today's fast paced working environment through the alpaca lifestyle, the horizons are limitless.
The passion for alpacas and our market is our most stabilizing factor because the truth be told: People Love Alpacas! They will always be in demand and popular. In fact, Quality is not a gimmick in any business and always commands its price and value.
The Bottom Line:
So what's the bottom line? For those looking for a balance sheet leading down the yellow brick road, some examples exist. Please examine each example with your personal finances, investment portfolio and lifestyle in mind.
Alpacas are great to own but even more fun to raise, show, train and sell! Once you raise an alpaca that was proudly hand bred and nurtured on your ranch, the hook will be set all that much deeper. What else can we say!
(Proceeds From) can be organized into several categories:
What Could go Wrong?
With all these potential sources of income, how could anything go wrong? As stated above, there are some potential risks such as illness, injury or death that do not plague an investment CD for example. These risks are limited, but do realistically exist. Therefore, it is essential that owners insure their investment utilizing the livestock insurance policies that are common in our industry. These policies can be customized to cover a variety of different potential risks. Education and research early in the evaluation process can help new buyers determine the appropriate insurance coverage to address these potential investment risks.
Unfortunately, new buyers sometimes fail to insure their most valuable asset. This approach is not to be universally encouraged and is completely avoidable. Please, don't take this risk.
Our formula is to insure our top studs and females until we have recovered our original investment through either stud service income or sales of new cria. Once we have realized this goal, we can accurately assess if removal of the insurance is appropriate. Another common method is insuring large herds at lower than market values through a deductible policy. In this situation, the cost of insurance is lower over the aggregate thus spreading the risk across your herd equally. (E.g. 5K per head). Please keep in mind that each breeder's assessment of potential risk may vary. For new buyers, these concerns are often more important as losses in the early stages of herd development may have more financial impact.
With this in mind, please realize that there are some inherent risks in the alpaca business. However, the benefits and market potential is truly unlimited. Through careful planning one can safely avoid the potential losses and enjoy the business free of the limited risks. The Alpaca market in a sense is wide open from what we observe.
How Long Will It Last?
The answer in all honesty is unknown. That is why it is important to be realistic and prudent when projecting potential future returns.
Please consider however that for the over 11 years that we have owned alpacas, the prices and market potential have remained relatively stable. In fact, the market is growing and our message of the many rewards is reaching more Americans than ever before.
For example, our ranch features alpacas of every price range and provides several levels of quality, price and value. We have consistently experienced growth in all segments of our market.
Our ranch is home to both South American Camelid breeds; the Huacaya and the Suri. Our approach is designed to offer our customers a wide selection of valuable inventory from each breed. Since the alpaca lifestyle is enjoyed from a multitude of perspectives, providing a wide selection of animals has been a proven formula for success.
Many new breeders purchase animals to simply make quality garments for family and friends and plan to enjoy the investment from a purely internal perspective. Other new breeders have purchased animals to create an exciting breeding based business. With this in mind, plan to evaluate the investment from your own personalized business/investment plan perspective. This will ensure a future that is financially realistic and personally rewarding without the misleading investment hype that can often be a part of a new investment endeavor.
With these perspectives in mind we have been able to introduce many new breeders to the business. This has been both personally and financially rewarding. The opportunity to assist investors and potential breeders from initial evaluation to investment while offering first class follow up assistance, has been an excellent family business.
Investment wise, our business results are based on conservative and realistic goals. Our business plan employs a policy to under promise and over deliver. This has led to rewarding new friendships and happy clients that are the key ingredients for future enjoyment and success in our industry. As expected, the alpacas do most of the work for you in this investment by simply being the wonderful creatures they have come to be. The rewards and lifestyle benefits of the alpaca industry are fantastic. Add the wonderful animals, fun business environment, great people; potential for residual income and the North American Alpaca tops the list of livestock investments.
In summary, according to our breed association AOBA,
"Alpacas Are The World's Finest Livestock Investment!"
"Alpacas By The Sea
Can Help You to Realize Your Dreams." **