hirechriscranley blog

I grew up on a farm in the country, across the street from my grandparents.

The roots of my family’s involvement in farming began with their immigration to the United States at the turn of the 20th century.   My basque great grandparents settled in the Imperial Valley via Cuba (they moved on after 2 years because Cuba was poorer than the country they left!).   My Swiss grandparents (or great grandmother) settled in the Imperial Valley after losing her husband to Typhoid fever (year after the great SF Quake) and then remarrying (with 3 kids) via San Francisco.   The story of my family in farming continues today, but it is mostly written through our family friends (relationships forged through 3 farming generations) and my former classmates currently tending to their family farms.  This story may have lessons to teach to web entrepreneurs struggling to establish themselves amongst large corporate, venture capital, and governmental competitive interests.   Here are a few lessons that I have learned about how my [extended] family farm has adapted in the face of large and seemingly insurmountable challenges:

1. No Debt!: While easier said than done, there are many community strategies for bootstrapping your operation.  Debt is a four letter word to a farmer.  Those interests that have survived generation to generation never take on an obligation that isn’t readily serviceable if they can help it!
2. Own the means/ capacity to production: Those family farms that have survived through generations place high importance on owning their own capital equipment:  processing sheds; tractors; etc.   These capital outlays are incremental sources of revenue and reduce their operating costs.   Several family farms have also exited land farming completely to consolidate their interests behind being capital service providers to other farmers.  Most family farming operations run “cooperative” structures that leverage common capital services spread across several interests.   [Curious comparison to make here regarding cloud computing!  I wonder if Twitter would not be better served having a more immediate span of control over their service infrastructure.  The twitter model is very different from the Craiglist model. I believe the Craiglist's service "fidelity" is better served by their focus on owning their own means of production.]
3. Find your premium buyers - Be it Global or Local: Premium buyers exist for any product.  If traditional market servicing mechanisms are not delivering the price you need, go find your own buyer that will.  Great example:  Cattle Feed.  In my former home, a premium is paid  by Kobe beef ranchers to hay/grass growers because their very specific quality and nutrient requirements are met by Valley suppliers.  In response to servicing this outlet, farmers have created a cooperative that markets and sells their products into the Japanese market.  A “farmers market” / direct to consumer strategy can also be organized under this point.
4. Experiment with 10-15% of your capacity: Those family farms that have not only survived, but actually made money over the generations were DISCIPLINED experimenters!  Cash crops don’t just happen.  Lower operating costs don’t just happen.  These farmers MADE THEIR OWN LUCK, by diversifying their production across several crops and experimenting a % of their capacity with new types of crops.    Every business or activity has a learning curve and these successful family farmers know this point well.  I believe that Google’s 20% persona employee project edict is a fair mimic of this strategy.
5. Be involved in your local coffee shop: The coffee shop is a literal and figurative place where networking, knowledge sharing, and community happens.  Community can be ugly, protectionist, and exclusive, but that’s sort of the point isn’t it?   Community is personal and consistent.  It supports itself.  It fights like hell to maintain itself.  Its about status.  Its about influence.  But its mostly about “getting things done” and “having fun.”  This last point is the underpinning all others made here, so if you are trying to start a web business please note that the only thing more important than venture capital is social capital.