How to start your success story in the Agric Value Chain
Jun 8, 2020
Agriculture remains one of the pillars of the economy and the good news is that everyone can be a part of it. Today, I want to take you through some necessary steps you need to take to be part of this gold rush.
A lot of people starts agricultural projects and fail to thrive because they fail to incorporate the cost of their endeavor into the initial plan. Agriculture can be demanding; it requires time, money and a lot of attention. Not having all these three at hand should not deter you, for instance you do not have to be on the field to make reasonable income from Agriculture. Firms like FarmFunded are always available for you. We do the work and you get paid! Yes it’s that simple but still involves lots of technicalities which the professionals take care of. You should be part of the people cashing out good money from agriculture by letting your money work for you. The other part entails much more than investing your money, it involves giving your time, and your attention.
Starting an agric project is like building a house or raising a child. You need to plan it well before you begin because when you plan effectively, challenges don’t meet you unawares or at least you are more prepared when they come. Ask yourself; why do I want to go into agriculture? What part of agriculture do I want to go into? There is a broad list of what you can choose from:
· The input providers: people that make various planting materials and tools available to farmers.
· Farmers: they plant and nurture crops and livestock to maturity.
· Off takers: those who buy agric produce from farmers and sell to the market or processors.
· Processors: people who add value to raw agric produce and sell it to final consumers at higher prices.
· Wholesalers: they sell agric produce either processed or raw to retailers or sometimes final consumers.
· Retailers: these are people that sell directly to consumers for final consumption.
Once you decide what part of the value chain you want to play in, the next thing you want to do is a proper market research; find out the needs and short comings of the sector and proffer a solution. This is your key to success. If you are not solving a problem, you are not yet in business.
Finance is the backbone of any business. No matter how amazing your ideas are, without money and tools to execute your plans they are just ideas in your head. These are four ways through which you can raise finance for your enterprise.
· Boot strapping; this involves the use of your money to run the business. The good part of this is that you are not under pressure due to debt and you can carry out your business plan step by step. However, how much money do you really have?
· Equity; this involves sharing the ownership of your business with other people who will finance the business. This kind of funding puts you on your toes because you must be accountable to your partners. The question you want to ask yourself here is; Am I ready to give part of my company to someone in exchange for the money I need? Do I have the necessary network to achieve this?
· Loans; a lot of people run away when they hear loan because they do not have collateral to take this loan. I’ll like to inform you that not all loans require collaterals and not all loans have back breaking interest rates!
· Grants; these are funds that are given by various organization, to support people projects. Grants don’t need to be paid back, but you need to be accountable with the money you receive.
I’m sure you want to know more about these few things I have said, so, in the next article, I’ll be taking you through the steps you need to take to get these loans, grants and other tools you need to start your own agricultural enterprise.