From PTSD to Profit: A Beekeeper’s Journey to Success
Introduction
Jim, a former Army bomb squad member, turned to beekeeping to cope with PTSD. He started with two hives in 2020 and found it to be calming. The business, Secret Garden Bees, has since grown to generate a quarter million dollars in just six months.
Business Growth
- Started with an initial investment of $500 and made $1,000 in the first year.
- Revenue grew to $10,000 in year two, $100,000 in year three, and $150,000 in year four.
- This year, they’ve already made $250,000 in just six months, with profit margins increasing from 20% to 40-50%.
Expanding into Large Grocery Stores
The speaker shares their experience of expanding their business into large grocery stores, specifically The Fresh Market, and offers advice to those struggling to go full-time.
Beekeeping 101
- American beekeepers commonly use Italian honey bees, which are calm and gentle, and can be purchased in bulk for around $150 or as a nucleus (baby package) with a queen and larvae for around $150.
- To operate a successful beekeeping company, the necessary equipment costs around $10,000, although a basic setup can be started with a 5-gallon bucket and filter for under $500.
- The honey extraction process involves stacking honey supers, pulling frames, uncapping honey, and spinning it out in an extractor, followed by filtering to remove wax and debris.
Honey Harvesting
The beekeeper extracts honey twice a year, in the spring and fall, from “honey supers” which are filled with frames containing drawn honeycomb. Each honey super can produce 30-50 pounds of honey per year, and a hive can produce 60-100 pounds in a good year.
Business Insights
- Prioritize risk management to avoid challenges.
- Scaling is necessary to achieve success.
- Start as an LLC or S Corp from the beginning to take advantage of liability protection, tax benefits, and asset management.
Packaging and Shipping
The beekeeper invested $20,000 in three pieces of equipment, including a film machine, to improve their honey bottling process. With the help of a small farmer grant, they only had to pay $2,000 out of pocket.
Equipment and Supplies
- The speaker acquired a forklift, truck, and trailer at a significantly reduced cost through government surplus.
- They source their corks directly from Portugal to get a better deal.
Premium Honey Product
The speaker’s premium honey product is priced between $10-$40, depending on the store and size, with a cost of $6-$4 per bottle to produce. The packaging is intentionally designed to appeal to upscale customers and markets.
Wholesaling and Retail
- The speaker initially underestimated the demand for a service at their farm, but as more people came, they had to stop working to help them, losing money.
- They built a solution for under $1,000, which now generates $2,000 a month.
- They landed a $46,000 order from The Fresh Market grocery store through persistence and building relationships with store managers and corporate contacts.
Hiring and Training
The speaker looks for individuals who can take direction, learn quickly, and operate independently when hiring employees and apprentices. They also benefited from hiring a disabled veteran apprentice through a federal program, which provides compensation for on-the-job training and tax credits.
Risk Assessment and Insurance
The speaker advises entrepreneurs to identify potential risks, plan for mitigation, and not get caught off guard when failures occur. They share a personal experience of overcoming a business failure, specifically the loss of 14 beehives due to an Arctic freeze, and how having a risk assessment and insurance helped mitigate the losses.
Conclusion
The speaker reflects on the importance of slowing down and building resiliency into their business plan, rather than pushing too far and taking unnecessary risks. They reference the military phrase “slow is smooth and smooth is fast” to emphasize the value of a measured approach.
| Term | Definition | Example Usage |
|---|---|---|
| PTSD | Post-Traumatic Stress Disorder, a mental health condition that can occur after a person experiences a traumatic event | Jim, a former Army bomb squad member, turned to beekeeping to cope with PTSD. |
| Beekeeping | The practice of maintaining bee colonies for honey production and pollination | Jim started beekeeping as a way to cope with PTSD and found it to be calming. |
| Revenue | The amount of money a business earns through its sales or services | The business, Secret Garden Bees, generated a quarter million dollars in just six months. |
| Profit Margin | The difference between a company’s revenue and the cost of producing its goods or services, expressed as a percentage | This year, they’ve already made $250,000 in just six months, with profit margins increasing from 20% to 40-50%. |
| Wholesaling | The practice of selling goods or services in large quantities to retailers or distributors | The speaker landed a $46,000 order from The Fresh Market grocery store through persistence and building relationships with store managers and corporate contacts. |
| Risk Assessment | A process of identifying, evaluating, and prioritizing potential risks to a business or project | The speaker advises entrepreneurs to identify potential risks, plan for mitigation, and not get caught off guard when failures occur. |
| Insurance | A financial protection against potential losses or damages | The speaker shares a personal experience of overcoming a business failure, specifically the loss of 14 beehives due to an Arctic freeze, and how having a risk assessment and insurance helped mitigate the losses. |
| LLC | A type of business structure that provides liability protection and tax benefits | The speaker advises entrepreneurs to start as an LLC or S Corp from the beginning to take advantage of liability protection, tax benefits, and asset management. |
| S Corp | A type of business structure that provides liability protection and tax benefits, similar to an LLC | The speaker advises entrepreneurs to start as an LLC or S Corp from the beginning to take advantage of liability protection, tax benefits, and asset management. |
Vocabulary Quiz: From PTSD to Profit
Choose the correct definition for each vocabulary word.
1. Calming
a) Exciting and energetic
b) Soothing and peaceful
c) Frightening and intense
2. Nucleus
a) A type of bee
b) A baby package with a queen and larvae
c) A type of honey
3. Liability
a) An asset or benefit
b) A financial risk or responsibility
c) A type of insurance
4. Upscale
a) Low-cost and affordable
b) High-end and luxurious
c) Mid-range and average
5. Resiliency
a) The ability to take risks
b) The ability to withstand challenges and setbacks
c) The ability to expand quickly
Answer Key
1. b) Soothing and peaceful
2. b) A baby package with a queen and larvae
3. b) A financial risk or responsibility
4. b) High-end and luxurious
5. b) The ability to withstand challenges and setbacks
The Use of Passive Voice in Business Writing
| Explanation |
|---|
| The passive voice is often used in business writing to convey objectivity, neutrality, and focus on the action rather than the doer. In the provided text, we can see examples of passive voice used to describe business operations, such as “Revenue grew to $10,000 in year two”, “The business has since grown to generate a quarter million dollars”, and “The honey extraction process involves stacking honey supers, pulling frames, uncapping honey, and spinning it out in an extractor”. The passive voice helps to emphasize the process and the results, rather than the person performing the action. |
Quiz: The Use of Passive Voice in Business Writing
| Questions |
|---|
| 1. What is the main purpose of using the passive voice in business writing? |
| a) To emphasize the doer of the action |
| b) To convey objectivity and neutrality |
| c) To make the writing more formal |
| d) To make the writing more casual |
| 2. Which of the following sentences is an example of passive voice? |
| a) The beekeeper extracts honey twice a year. |
| b) The honey extraction process involves stacking honey supers. |
| c) Jim started the business in 2020. |
| d) The business is operated by Jim. |
| 3. Why is the passive voice used in the sentence “The business has since grown to generate a quarter million dollars”? |
| a) To emphasize Jim’s role in the business |
| b) To focus on the action of growing the business |
| c) To make the writing more formal |
| d) To make the writing more casual |
| 4. Which of the following is NOT an example of passive voice? |
| a) The equipment costs around $10,000. |
| b) The honey is extracted by the beekeeper. |
| c) The business was started by Jim. |
| d) Jim extracts honey twice a year. |
| 5. What is the effect of using passive voice in business writing? |
| a) It makes the writing more personal |
| b) It makes the writing more objective and neutral |
| c) It makes the writing more formal |
| d) It makes the writing more casual |
Answer Key
| Answers |
|---|
| 1. b) To convey objectivity and neutrality |
| 2. b) The honey extraction process involves stacking honey supers. |
| 3. b) To focus on the action of growing the business |
| 4. d) Jim extracts honey twice a year. |
| 5. b) It makes the writing more objective and neutral |
