How to Start a Bamboo Farm

Start a bamboo farm by following these 10 steps:

1. Plan your Bamboo Farm
2. Form your Bamboo Farm into a Legal Entity
3. Register your Bamboo Farm for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Bamboo Farm
6. Get the Necessary Permits & Licenses for your Bamboo Farm
7. Get Bamboo Farm Insurance
8. Define your Bamboo Farm Brand
9. Create your Bamboo Farm Website
10. Set up your Business Phone System

We have put together this simple guide to starting your bamboo farm. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a bamboo farm?

Bamboo farming will require an initial investment to purchase equipment and then prepare your land, if you’re not already farming. But, if you’re already a farmer, the switch to bamboo isn’t that hard. As previously noted, bamboo can take up to five years to sprout and establish so begin your transition while you still have other cash crops in rotation. Bamboo seeds aren’t too expensive either — usually about $3 to $5 per 100, depending on the variety. Bamboo can be tricky to germinate and grow from seed, though, so you may need quite a bit of seed to get started.

What are the ongoing expenses for a bamboo farm?

Like most farming businesses, the ongoing expenses include farm equipment care and maintenance as well as purchasing new equipment and supplies, such as irrigation systems and fertilizer. Bamboo is fairly pest-resistant, which reduces pest control costs. Advertising, insurance, and shipping costs also will continue to factor into ongoing operating expenses.

Who is the target market?

Your target market will consist of younger, DIY customers, between the ages of 30 and 65 as well as wholesalers and nurseries if you run a large enough operation.

How does a bamboo farm make money?

Bamboo farmers make money by selling their harvested — and sometimes processed — bamboo to wholesale companies. If you plan to open your farm to the public, you also may sell established clumps to consumers for residential and ornamental uses.

How much can you charge customers?

Bamboo is a relatively inexpensive crop to grow, and you can pass those savings on to your customers. Two-gallon, potted clusters retail for $40 to $60, depending on the variety. Some giant or more rare varieties can command higher prices. Check your competitor pricing when conducting your initial market research.

How much profit can a bamboo farm make?

Bamboo farming can generate $30,000 to $50,000 annually, but your market and farm size will play a key role in determining your profit margins.

How can you make your business more profitable?

You can combine bamboo farming with the farming of many other nursery and ornamental plants. Flowers and edible herbs make great additions to sell to visiting customers.

You also could create decorative, living potted displays of your bamboo. By placing a few species together in pots, you can charge customers more for these ornamental takeaways and impulse buys.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bamboo farm is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate an aerial sports instruction business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

Bamboo farming, like traditional crop farming, requires a solid knowledge of agricultural techniques and cues. Successful bamboo farmers also must understand crop management and how to harvest crops for market. Bamboo farming may provide the perfect fit for individuals with farming experience and an interest in a small cash crop.

What happens during a typical day at a bamboo farm?

Bamboo is a relatively low-maintenance crop once established. Technically a grass, it can grow well in a variety of environments. Warm and wet conditions are ideal, but farmers cultivate bamboo in many climates. Most days will involve checking water and fertilizer needs for established bamboo plants, germinating and starting seeds, and tending to newly sprouted shoots that will become future crops.

Bamboo grows quickly and relatively easily on its own, but it does take a while to establish itself — sometimes up to five years. That means a good bamboo farmer must not only maintain a solid rotation of emerging crops, but also tend to areas not yet sprouted. This can prove challenging because you can’t see the progress of the plants. You also need to maintain regular watering and feeding schedules. 

What are some skills and experiences that will help you build a successful bamboo farm?

Like traditional farming, bamboo farming takes hard work. While there’s a potential market explosion for this product, don’t expect to get rich overnight without putting in the work to make it happen. Farming knowledge and experience are essential, but a larger part of the success of your bamboo farm will depend on your connections with wholesalers, clients, and customers. You must make a lasting impression on them because they can help you reach your business goals. Without customers, nothing else matters. Learn to sell your product as an extension of yourself.

You also should become an avid student of your industry. Know some history, some cool facts, and some industry statistics. Then, when you get a chance to discuss your work with potential customers, you can easily explain why bamboo makes such a wonderfully versatile and eco-friendly solution for modern manufacturing needs.

What is the growth potential for a bamboo farm?

Bamboo farming likely has a fairly positive future because of its popularity among manufacturers that increasingly incorporate it into traditional textile roles. Bamboo is very strong, relatively easy to grow, and popular within many industries. With the right wholesale connections, bamboo farming growth may triple in as many years.