How to start Agriculture Machinery business step-by-step guide

How to start Agriculture Machinery business step-by-step guide

step-by-step guide to start an Agriculture Machinery business, written in simple language and practical steps, especially suitable for Pakistan 🇵🇰.

1. Understand What “Agriculture Machinery Work” Means

First decide which type of work you want to do:

Common Agriculture Machinery Businesses

  • 🚜 Machinery Rental Service (tractor, rotavator, thresher)
  • 🛠 Repair & Maintenance Workshop
  • 🏪 Sales of New or Used Machinery
  • 🔩 Spare Parts Shop
  • 🌾 Custom Farming Services (ploughing, harvesting, sowing)

👉 Best for beginners: Machinery rental + repair (low risk, regular demand)


2. Learn Basic Technical Knowledge

You don’t need a degree, but basic skills are very important.

What to Learn

  • Tractor engine basics
  • Diesel engine repair
  • Hydraulic system
  • PTO (Power Take Off) system
  • Electrical wiring

How to Learn

  • Work 3–6 months in a mechanic shop
  • Short courses from:
    • TEVTA
    • NAVTTC
    • Local agriculture training centers
  • Learn from YouTube channels (Urdu/Hindi)

3. Market Research (Very Important Step)

Before investing money, research your local area.

Check These Things

  • Number of farmers nearby
  • Types of crops grown (wheat, rice, sugarcane, cotton)
  • Existing machinery services
  • Rental prices in your area
  • Peak seasons (Rabi & Kharif)

📌 Talk directly to farmers to understand their needs.

4. Choose Location

Best locations:

  • Village center
  • Near farmland
  • Near mandi (grain market)
  • Roadside for easy tractor movement

Space Requirement

  • 5–10 marla open land (minimum)
  • Covered shed for machines
  • Small office/store room

5. Decide Your Machinery (Start Small)

Don’t buy everything at once.

Starter Machinery (Recommended)

MachineApprox Price (PKR)
Used Tractor (50–60 HP)12–20 lakh
Rotavator2–3 lakh
Cultivator50,000–80,000
Thresher3–5 lakh
Seed Drill1–2 lakh

👉 You can also start with only one tractor + one implement.

6. Business Registration & Legal Work

To work professionally:

  • Register business (Sole Proprietor)
  • Get NTN from FBR
  • Open a bank account
  • If hiring drivers → basic labor registration

💡 Many small farmers start informally, but registration helps you grow.

7. Hire Skilled Staff (Optional)

At start, you can manage yourself.

Later You May Need:

  • Tractor driver/operator
  • Mechanic
  • Helper

Pay can be:

  • Monthly salary
  • Daily wages
  • Percentage of job income

8. Set Rental Prices

Prices depend on area and season.

Example Rental Rates

ServiceRate
Tractor ploughing2,000–3,000 per acre
Rotavator3,000–4,500 per acre
Thresher1,200–2,000 per hour
HarvestingCrop dependent

9. Marketing & Promotion (Low Cost)

You don’t need expensive advertising.

Best Marketing Methods

  • Word of mouth
  • Contact local farmers directly
  • Posters in villages
  • WhatsApp groups
  • Tie-up with commission agents (arthi)
  • Offer discounts in first season

📢 Good service = free marketing.

10. Daily Operations & Management

To succeed:

  • Maintain machines regularly
  • Keep spare parts ready
  • Maintain fuel record
  • Keep a diary of daily work & income
  • Always arrive on time (very important for farmers)

11. Monthly Profit Estimate (Example)

ItemAmount (PKR)
Monthly Income180,000
Fuel & Maintenance60,000
Driver Salary30,000
Net Profit90,000

💰 Profit increases in peak seasons.

12. Expand Your Business (After 6–12 Months)

  • Add more machines
  • Start spare parts shop
  • Sell used machinery
  • Contract farming services
  • Partner with agri companies

13. Common Mistakes to Avoid

❌ Buying expensive machines too early
❌ No maintenance plan
❌ Ignoring farmer relations
❌ Poor fuel management
❌ No record keeping

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