It is mid-January and the hullabaloo of New Year
greetings has died down. So has the depression of unmet New Year resolutions.
The beauty of resolutions in my view, is that out of ten resolutions an average
person will follow through with two or three. If you are disciplined enough you
will be lucky to succeed in four or five. Nonetheless, I see resolution making
as more of a ritual to uplift yourself and drive you to new limits. Making
resolutions makes you prioritize on your goals. It gives you a sense of direction and that is what is important. Well, that is my long and
winding way of saying Happy 2014, with the obvious omission of New Year. And
perhaps telling you that it is okay to make resolutions on January 1st and
break plenty of them by January 10th.
Sweet tales of agribusiness
Back to agribusiness, the focus of this blog, there
are several young people getting lured into agriculture as a source of stable
income. A substantial number of graduates are now finding agribusiness to be an
exciting career choice. Agribusiness is currently a hot venture, no dispute. Bloggers,
myself included, have taken to the internet to make agriculture sound even
sexier. The truth is that agribusiness has an attractive bottom line that is
hard to resist.
To prove this, try sit with young people who are
already making a killing from agriculture. Their gusto for the trade will make
you want to quit your job and get your hands dirty too. These digital farmers
will give you the figures they make and you will want to pack your bags and
head back to the village to farm. However, you will make sure you have access to the
internet so that you can keep up with the latest research and trends.
This happened to me last year as I interviewed at
least 10 young farmers and attended a few conferences. I so badly wanted to
forfeit my career and become a farmer. I could not resist the sweet tales and
tidy returns that were coming from Mother Nature. I mean, how hard would it be
to pick up a jembe to make three hundred thousand a month?
Luckily, I didn’t have the required money to invest
and that held me back. I was so determined that without land nor prior
experience I was ready to get started. I say I was lucky because I was not
prepared for the dirty side of agriculture. I only had three months experience
of writing and colouring other people’s success in agribusiness. That does not
in any way make me an agribusiness pundit.
This situation got me thinking that perhaps before
investing your hard earned cash in agribusiness, you should take a breather and
ask yourself whether you are cut out for agriculture. Talk to someone who is in
agribusiness. Ask them how they got there. Find out what time they get up and
what time they get to sleep. Find out how many times they got disappointed by a
failing crop or dying animals before hitting the jack pot. Find out what keeps
them going despite their produce being a glut on the market, or a drug on the
market.
10 things to consider
Here are ten things that you need to think about
before ditching that job to get into agribusiness:
1. Passion
for agriculture
Before entertaining the thought of diving into
agriculture, ask yourself if you have any interest whatsoever in agriculture?
The returns might sound enticing but are you the kind of person who likes plants or animals and taking care of them? Have you previously done anything to
do with agriculture? Do you even have a kitchen garden? If you hate the thought
of dirt on your hands, then agribusiness is not for you.
2. Identify
your area of interest
After assuring yourself that indeed agriculture is
one of your passions, then start analyzing what area to focus on. You cannot
excel in agribusiness if you are a jack of all trades. Pick one area and focus
on it. If chicken farming is your thing then pursue it entirely.
3. Do
your research
After clearly defining your area of interest, get
information about it. You will require technical knowledge about that crop or
livestock you have narrowed down to. You need to know the best practice(s) that will yield best results.
Identify the opportunities available in your chosen field. Find out how you can
strategically add value to what exists to gain an advantage over your
competitors.
4. Planning
Getting into agribusiness without a business plan
is like shooting your foot and later wondering why you cannot walk. Have a
clear business plan and assess the risks of your business. Agribusiness has
money making in it. You therefore have to treat it like any other business. Dry
run planning will reduce the possibility of your venture failing.
In addition, consider all the requirements necessary
to start off your business. Do you have land? If you don’t, how do you intend to
acquire one? How much will it cost? How far is the land from your nearest
selling point? What will be your means of transport and how much does it cost?
5. Start
with the end in mind
Market is the end in business. The primary goal of
getting into agribusiness is to make profit. Before you get into any form of
agribusiness, find out if there is a market for your product and seek a
thorough understanding of that market. This saves you the hassle of having a
product and no market for it in the long run.
6. Have
some savings
To set up a business you need money. To get into
agribusiness will also require you to invest generously before you start
reaping anything. My advice is that you stay clear of loans if you can and
invest your savings instead. Agribusiness is risky for a starter. You are safer
investing your savings than investing money that you do not have, a.k.a loans.
7. Do
not invest all your life savings
Since you are taking a risk by investing in
agribusiness, you should have some money put aside in case things do not work
out as planned.
8. Network
Get to know people. Make friends in the
agribusiness sector both online and offline; this way you will have people to
share your experience with and to learn from. Join farmer groups on Facebook,
Twitter and Google Plus. Contribute to agricultural discussions online.
Most
importantly, cultivate healthy relationships with your suppliers and customers.
9. Commitment
Agribusiness is just like any other business; it has
its fair share of risks. In fact, I would rate it as a high risk business. You
need a neat mix of tough skin and passion to survive. Numerous challenges will
come your way and you have to be committed to the venture to get back on your
feet every so often. Your entire crop might dry up due to a strange disease and
there will be little that you can do. Your commitment to that business will
drive you to continue despite such painful disappointments.
10. Have options
Doing the same thing over and over again and
expecting different results is insanity. This is one of my favourite aphorisms
because it’s true! If after three years you realize that you have not made any
profit in your agribusiness venture, then perhaps it’s time to pitch tent
elsewhere. Keep an open mind and be ready to exit when the time comes.
Happy 2014 people! I wish you the best in your
agribusiness venture.
