And Now For Something A Little Different...Let's take something very different this time. Have you ever met an Alpaca? Wonderful creature. It looks like a cross between a sheep and a giraffe, and has the personality of a three week old puppy. Wouldn't it be great to build a big pen in the back yard and have dozens of these wonderful creatures running around back there? And then you could go out and feed them every day. And you could bring them water and pet them every day. You may have seen an ad on TV suggesting that you could make money by raising alpaca.So let's just say you are the sort of person who thinks that sounds like fun. Who wouldn't want a yard full of long necked friendly puppies? BTW, did I mention that an Alpaca is a form of llama? And did I mention that just like their near cousins the llama, alpaca have a bad habit of spitting. They also eat quite a bit. Anything that eats quite a bit also poops quite a bit. I think you see where this is going by now. By the way, they don't smell very good, especially after a rain. But enough of that negativity, let's have a look at the business side of this "opportunity". How much does it cost to buy an alpaca? Alpaca breeding stock costs are dizzying. An average pregnant female costs $22,000, according to the AOBA. Some sell as low as $12,500; superior stock commands $40,000. Males retail between $7,500 and $25,000, although the highest quality studs have sold for more than $100,000. Once your llamas have had a couple of years to grow a nice long coat, you can shear them yourself or have a professional do it ($$). The resulting wool can typically be sold for anywhere from $2 a bushel to $100 a bushel depending on its quality and color. Two years? How much does it cost to feed an alpaca for two years? How much poop would you have to shovel in two years? OK, let's make a list of what's wrong with this very different business opportunity. Again, you may be surprised by my list. 1) Each time you work hard, you get paid for that work only once. 2) You have to pay out a bunch of money over and over again. 3) Each bit of work that you do brings in a paltry sum of money. 4) If you take some time off, the guy sending you checks does too. (and with this one, you would have to pay somebody to take care of your "herd" while you're gone.) 5) Shoveling alpaca poop is, well, lets face it. It's BORING! See any similarity to the last list? Again, you'll see no mention of the work being too hard. Hard work is good for you. It builds character. If you choose the right business, it also builds your bank account. Next...
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