Many years ago my son purchased 12 yearling registered black angus heifers, at a reasonable price, from a man who had been in the business for many years. His was a small operation and he bred his cattle to be good milkers and work on grass. No emphasis on show cattle. They turned out to be a sound investment. Sold some of the best bull calves to other producers and kept the better heifers. After getting the herd built up the heifers we kept were put in the commercial herd and crossed with another breed. Made some dandy calves.
By the way, noticed you do not have any equipment expense, hay production or fertilizer factored into your budget. Is your operation such that this is not required. Also, would think that $1,000 would be a little conservative when it comes to vet expenses along with treating the cattle with Ivomec, etc. Also, what about insurance costs such as liability coverage and death due to lightning, etc.?
Wish you the best and, above all, be patient. Don't try to get big too fast. You have a lot of years ahead of you to make it work.
Yes, as I may have mentioned, my dad is all for registered quality stock. He figures at my age, that represents the sounder investment. Our operation feeds a little alfalfa in the winter, and our cows don't see ivomec, shots, hay, or any other "crutches" other than when they're sick or need a little flesh before getting shipped. Fertilizer is provided by intensive grazing methods, and a lot of the "irrigation" for that matter. Having the cow be the working unit rather than diesel engines seems to keep our operating costs pretty low. One I didn't put in is our fencing and water supply which costs us in diesel to haul water to certain pastures. The fencing is something already available.
What is your plan for feeding in drought?
Grassfed works great if it rains, but you can run into really deep trouble if you have no backup plan. That is when local hay supplies will be nonexistent, or very expensive if any is available.