WHAT TO DO BEFORE VENTURING INTO AGRIBUSINESS PART TWO

Agribusiness investment guideline:

1 Researched visit as many farm as possible before venturing into any kind of agribusiness. Online research may be additional bonus but please don’t rely on them as we have many people who preach what they practice but parade themselves as expert. They are marketers and all they care about is their pocket.

2 Start small. Going into farming with your paper projection can be very tempting as you want to make all the money fast but I suggest that you exercise caution and start small. It’s a new terrain and you need to learn all you can before putting in all your hard earned savings. Don’t spend so much on infrastructure while you are short of funds to stock up the same building. As a rule of thumb, don’t spend more than 40% of your capital on infrastructure. Same applies to buying animals, don’t stock animal and start feeding them cheap feed because you are short of funds. Always buy animals you can feed conveniently.

3. Reduce your expectation- it can be very frustrating when you don’t get the result you want especially in farm biz. I always advice new comers to reduce their expectation to 10% of their initial projection. You will still make the 100% projection but very few make it at the early stage.

4. Management is key- sound management practice can never be undermine when it comes to farming. Keeping good records, especially financial records and produce records is important.

5. Get a mentor- this will fast track your success but get a mentor that practice what they preach not a sugar coated maketers

6. Continuous improvement should be your overall goal but be careful not to change ways that has worked for you too quick because of marketers as all they care about is their pocket. Change is inevitable but do it gradually.

7. Be patient. Agribusiness is not an overnight success kind of business. It takes discipline to succeed in farm business.

8. It may take time before you recoup your initial investment especially if you will put up infrastructure. Manage your expectation as farming is not a gold mine like people preach especially for new comers

10. Farm hands are the angel/devil of agribusiness. Just like Everyman has a king and a fool in him, find ways to get the best from them. Most of them are illiterate and they don’t have the kind of trainings you have acquired over the years. Be deliberate about training and motivating them to get what you want as your success or failure may weigh heavily on farm hands if your system is less automated. Take them as your team member and respect them but don’t reinforce bad attitude.

Get good seeds or animals. You want to get the best from your produce but you can’t do that without getting the foundation right. Get improved seedling /breed.

Give your seeds and animals what they require to grow optimally. Farming is garbage in garbage out. If an animal require 50% enter based energy, 25% protein and 25% fiber but you are giving the same animal 100% fiber. You will not get the required result, same applies to plant

Reinvest your profit back into farming.

Add value to what you produce.

Finding a market for your produce before they are ready for market will make farming a very interesting venture for you.

My humble submission having lost millions in agribusiness over the years. I wish you all the best in your journey as agroprenuer.

 

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