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Expansion Opportunities in
Beekeeping
Grant F. C. Gillard
grantfcgillard@gmail.com
www.slideshare.net
“Beekeeping With
Twenty-five Hives”
Evolution of a Fortunate Beekeeper
 First year – scared, intimidated, micromanage
 Second year – this is an expensive hobby
 Third year – this is a lot of work
 Fourth year – this is easy, I’m a pro
 Fifth year – I think I can make some money
 Sixth year – I finally broke even (this year)
 Seventh year – I need more equipment
When you really enjoy beekeeping…
“Passion breeds
optimism.”
Vision Commitment
Perseverance Resilience
Tenacity Determination
“Can I make a little money at this
hobby that I love?”
Can I (at least) recoup my expenses?
Can I buy a little something
special for my family?
Underlying questions:
What Makes Expansion Work?
 Efficiency – working smarter, not just harder
-- making the best use of resources (time)
 Economics – return on investment
 Energy – always more work to be done
 Expediency – getting things done
when they need to be done.
Growth rate – rate of expansion
0
20
40
60
80
100
120
1 2 3 4 5 6 7
Series1
Is there a downside?
 Less TLC and personal attention
 More “herd mentality”
 Certain seasons demand your full attention
(swarm prevention, queen rearing)
 You have to contend with all kinds of weather
 Balancing beekeeping with other demands
Conflicts and Challenges
– only 24 hours each day
1
2
3
4
5
Weather and mud
Work Commitments Family Obligations
Day light runs out
Personal
Energy*
*heat, humidity, Facebook
 Recreational hobby?
 Income-producing hobby?
 Part-time side-hustle?
 Formal side-line business?
The difference is how we treat our
income and expenses.
So what do we have?
“I’m afraid to put a pencil to
all the things I’ve bought
to find out what my
honey really costs.”
Overheard at a bee meeting
“My beekeeping is a
non-profit, faith-based
venture.”
Expansion Issues
 Purpose and Focus
 Product to market
 Legal Structure
 Accounting Practices
 Labor Requirements – hiring
 Insurance
 Acquisition of equipment
 Acquisition of bees/queens
 Locations of outyards
 Production records
 Harvesting and health codes
 Marketing, sales revenue
Expansion Issues
 Purpose and Focus – Why?
 Product to market - What?
1. Extracted Honey
Bulk (wholesale) buckets or barrels
Bottled (retail)
Direct to consumer (farmers market)
Third party (retail, third-party store)
2. Nucs and Queens
3. Pollination Services – usually migratory
☻
☻
☻
‫ס‬‫ס‬
☻
☻
Purpose: Getting Bigger…why?
Product: What …and How to $?
Expansion Issues
 Purpose and Focus
 Product to market
 Legal Structure
 Accounting Practices
 Labor Requirements – hiring
 Insurance
Legal Structure
 LLC (still liable)
 Partnership – LLP
 Sole Proprietorship
 Local business license/permit (city clerk)
 Zoning of residence as a business (HOA)
 Do you keep your day job?
Health insurance, pension
Accounting Practices
 Separate Business Checking Account
File an EIN (Federal IRS)
File a “Fictitious Name” (Secretary of State)
 File income/expenses on Schedule C
 Quicken “Quick Books”
Labor Requirements - Hired Help?
 Seasonal, hire some teenagers, family?
 Cash under the table, or legally reported
 Insurance, workman’s comp, taxes, etc.
 Honey house needs rest rooms
 Rest rooms need septic or sewer
 Barter with other beekeepers and trade
for nucs or used equipment
Insurance
 Product and Premises Liability
 Not normally under “Homeowners”
 May need to shop for a policy
Expansion Issues
 Purpose and Focus
 Product to market
 Legal Structure
 Accounting Practices
 Labor Requirements – hiring
 Insurance
 Acquisition of equipment
 Acquisition of bees/queens
 Locations of outyards
 Production records
 Harvesting and health codes
 Marketing, sales revenue
Expansion Issues
 Acquisition of equipment
 Acquisition of bees/queens
 Locations of outyards
 Production records
 Harvesting and health codes
 Marketing, sales revenue
Acquisition of Equipment
 Higher grade of bee suit
Ventilated bee suit
“Ultra-breeze”
 Gloves
Vaseline on hands
1 part bees wax : 3 parts olive oil
Nitrile gloves
Acquiring Equipment
1. Make your own
--from scrap and cull wood
--from purchased lumber (Home Depot)
2. Buy used and clean it up, repaint
Caveat: homemade stuff
Caveat: why is this being sold?
3. Buy new and assemble, buy assembled.
Each option is a trade-off of time and labor
against out-of-pocket costs
Acquisition of Bees and Queens
1. Buy (and move) existing hives
2. Buy nucs and packages
3. Split everything
Raise your own queens*
Buy mated queens or cells
4. Collect and trap swarms
5. Bee rescues and cut-outs
Each one is a trade-off of time and labor
against out of pocket costs
Buy or Build?
 What is your main objective and purpose?
 What is the best use of your time and energy?
Does queen rearing distract and
divert energy from the core business?
Is it cheaper to buy assembled frames?
Others do it, and do it well.
Where are you willing to abdicate control?
Where will you trade money for time?
Moving Hive: Tailgate winch
The need for more apiaries
 Finding suitable locations
 Distance from home
 How many hives can I bring?
 Diversity of floral sources
 Access: 24/7, by truck, farm gates
 Water, full sun, shelter from winds
 Neighbors and nervous spouses
 Adjacent crops, pesticide application, mono
 Rent, written lease
Record Keeping
The biggest lie we tell ourselves is…
“I don’t need to write it down.
I’ll just remember it.”
Record Keeping
 Less details with more hives
 Written, accessible notes
 Need to be reviewed before each day
Where do I need to go?
What did I do last time?
What do I need to do today?
What do I need to get it done?
Harvesting
 Harvest early and often, vs one big blast
 Use of queen excluders three weeks prior
(upper entrance recommended)
 Use of fume boards
Honey Robber (Bee-go)
Honey Bandit – Mann Lake
Bee Quick
 Fume boards to reduce robbing
Evolution of Extracting
 Laundry room (floor drain and sinks)
 Kitchen
 Basement – stray bees in supers, steps
 Garage (but not bee tight)
 Converted greenhouse
 2011 – built honey house
Separate warming room with dehumidifier
Separate extracting room
Separate bottling room
Plenty of clean storage
Logistics of materials - flow
Supers come in
Honey is extracted
Supers go out wet
Honey is stored
Honey is bottled
Honey goes out
Best advice
“What would you do different?”
A Word About Health Inspections
 County Health Department trumps the state
 “Jelly Law” Section 261.241.1 (State Statute)
Only for direct-to-consumer sales
Basically removes the commercial kitchen
 SB500 – 2015, State Legislature
Allows honey to be processed in the domicile
where it is produced, then sold to a third
party. No commercial kitchen.
 If you have a separate honey house, unattached,
SB500 does not apply, must be inspected by
state…but they are easy to work with.
Marketing
 Retail – Direct to consumer
Farmer’s Markets
(politics, rules and regulations)
Driveway (honor box)
What sizes? Source of containers?
 Wholesale – to third party
Sell to a “reseller” bottled (Health Food)
Sell to other beekeepers(buckets or barrels)
Where to?
Grant Gillard
grantfcgillard@gmail.com
www.slideshare.net

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Monroeville 2 02 16-19 beekeeping with twentyfive hives

  • 1. Expansion Opportunities in Beekeeping Grant F. C. Gillard grantfcgillard@gmail.com www.slideshare.net “Beekeeping With Twenty-five Hives”
  • 2. Evolution of a Fortunate Beekeeper  First year – scared, intimidated, micromanage  Second year – this is an expensive hobby  Third year – this is a lot of work  Fourth year – this is easy, I’m a pro  Fifth year – I think I can make some money  Sixth year – I finally broke even (this year)  Seventh year – I need more equipment
  • 3. When you really enjoy beekeeping… “Passion breeds optimism.” Vision Commitment Perseverance Resilience Tenacity Determination
  • 4. “Can I make a little money at this hobby that I love?” Can I (at least) recoup my expenses? Can I buy a little something special for my family? Underlying questions:
  • 5. What Makes Expansion Work?  Efficiency – working smarter, not just harder -- making the best use of resources (time)  Economics – return on investment  Energy – always more work to be done  Expediency – getting things done when they need to be done.
  • 6. Growth rate – rate of expansion 0 20 40 60 80 100 120 1 2 3 4 5 6 7 Series1
  • 7. Is there a downside?  Less TLC and personal attention  More “herd mentality”  Certain seasons demand your full attention (swarm prevention, queen rearing)  You have to contend with all kinds of weather  Balancing beekeeping with other demands
  • 8. Conflicts and Challenges – only 24 hours each day 1 2 3 4 5 Weather and mud Work Commitments Family Obligations Day light runs out Personal Energy* *heat, humidity, Facebook
  • 9.
  • 10.  Recreational hobby?  Income-producing hobby?  Part-time side-hustle?  Formal side-line business? The difference is how we treat our income and expenses. So what do we have?
  • 11. “I’m afraid to put a pencil to all the things I’ve bought to find out what my honey really costs.” Overheard at a bee meeting
  • 12. “My beekeeping is a non-profit, faith-based venture.”
  • 13. Expansion Issues  Purpose and Focus  Product to market  Legal Structure  Accounting Practices  Labor Requirements – hiring  Insurance  Acquisition of equipment  Acquisition of bees/queens  Locations of outyards  Production records  Harvesting and health codes  Marketing, sales revenue
  • 14. Expansion Issues  Purpose and Focus – Why?  Product to market - What? 1. Extracted Honey Bulk (wholesale) buckets or barrels Bottled (retail) Direct to consumer (farmers market) Third party (retail, third-party store) 2. Nucs and Queens 3. Pollination Services – usually migratory
  • 17.
  • 20. Expansion Issues  Purpose and Focus  Product to market  Legal Structure  Accounting Practices  Labor Requirements – hiring  Insurance
  • 21. Legal Structure  LLC (still liable)  Partnership – LLP  Sole Proprietorship  Local business license/permit (city clerk)  Zoning of residence as a business (HOA)  Do you keep your day job? Health insurance, pension
  • 22. Accounting Practices  Separate Business Checking Account File an EIN (Federal IRS) File a “Fictitious Name” (Secretary of State)  File income/expenses on Schedule C  Quicken “Quick Books”
  • 23. Labor Requirements - Hired Help?  Seasonal, hire some teenagers, family?  Cash under the table, or legally reported  Insurance, workman’s comp, taxes, etc.  Honey house needs rest rooms  Rest rooms need septic or sewer  Barter with other beekeepers and trade for nucs or used equipment
  • 24. Insurance  Product and Premises Liability  Not normally under “Homeowners”  May need to shop for a policy
  • 25. Expansion Issues  Purpose and Focus  Product to market  Legal Structure  Accounting Practices  Labor Requirements – hiring  Insurance  Acquisition of equipment  Acquisition of bees/queens  Locations of outyards  Production records  Harvesting and health codes  Marketing, sales revenue
  • 26. Expansion Issues  Acquisition of equipment  Acquisition of bees/queens  Locations of outyards  Production records  Harvesting and health codes  Marketing, sales revenue
  • 27. Acquisition of Equipment  Higher grade of bee suit Ventilated bee suit “Ultra-breeze”  Gloves Vaseline on hands 1 part bees wax : 3 parts olive oil Nitrile gloves
  • 28.
  • 29. Acquiring Equipment 1. Make your own --from scrap and cull wood --from purchased lumber (Home Depot) 2. Buy used and clean it up, repaint Caveat: homemade stuff Caveat: why is this being sold? 3. Buy new and assemble, buy assembled. Each option is a trade-off of time and labor against out-of-pocket costs
  • 30.
  • 31.
  • 32. Acquisition of Bees and Queens 1. Buy (and move) existing hives 2. Buy nucs and packages 3. Split everything Raise your own queens* Buy mated queens or cells 4. Collect and trap swarms 5. Bee rescues and cut-outs Each one is a trade-off of time and labor against out of pocket costs
  • 33.
  • 34. Buy or Build?  What is your main objective and purpose?  What is the best use of your time and energy? Does queen rearing distract and divert energy from the core business? Is it cheaper to buy assembled frames? Others do it, and do it well. Where are you willing to abdicate control? Where will you trade money for time?
  • 36.
  • 37.
  • 38.
  • 39.
  • 40. The need for more apiaries  Finding suitable locations  Distance from home  How many hives can I bring?  Diversity of floral sources  Access: 24/7, by truck, farm gates  Water, full sun, shelter from winds  Neighbors and nervous spouses  Adjacent crops, pesticide application, mono  Rent, written lease
  • 41.
  • 42.
  • 43.
  • 44.
  • 45.
  • 46. Record Keeping The biggest lie we tell ourselves is… “I don’t need to write it down. I’ll just remember it.”
  • 47. Record Keeping  Less details with more hives  Written, accessible notes  Need to be reviewed before each day Where do I need to go? What did I do last time? What do I need to do today? What do I need to get it done?
  • 48.
  • 49.
  • 50.
  • 51. Harvesting  Harvest early and often, vs one big blast  Use of queen excluders three weeks prior (upper entrance recommended)  Use of fume boards Honey Robber (Bee-go) Honey Bandit – Mann Lake Bee Quick  Fume boards to reduce robbing
  • 52. Evolution of Extracting  Laundry room (floor drain and sinks)  Kitchen  Basement – stray bees in supers, steps  Garage (but not bee tight)  Converted greenhouse  2011 – built honey house Separate warming room with dehumidifier Separate extracting room Separate bottling room Plenty of clean storage
  • 53.
  • 54. Logistics of materials - flow Supers come in Honey is extracted Supers go out wet Honey is stored Honey is bottled Honey goes out
  • 55. Best advice “What would you do different?”
  • 56.
  • 57.
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
  • 63. A Word About Health Inspections  County Health Department trumps the state  “Jelly Law” Section 261.241.1 (State Statute) Only for direct-to-consumer sales Basically removes the commercial kitchen  SB500 – 2015, State Legislature Allows honey to be processed in the domicile where it is produced, then sold to a third party. No commercial kitchen.  If you have a separate honey house, unattached, SB500 does not apply, must be inspected by state…but they are easy to work with.
  • 64. Marketing  Retail – Direct to consumer Farmer’s Markets (politics, rules and regulations) Driveway (honor box) What sizes? Source of containers?  Wholesale – to third party Sell to a “reseller” bottled (Health Food) Sell to other beekeepers(buckets or barrels)
  • 65.
  • 66.
  • 67.
  • 68.