APPLYING THE BASICS AND
ENJOYING CONSUMERS’ OPEN
EMBRACE By FRANCIS AGRONIGERIA
While agriculture continues to remain a guaranteed source of income if well explored, there seems to be massive negligence of some basic guidelines which form the bedrock of its actualization.
Several feasibility reports have
been shelved without hitting the implementation stages. This may not have
resulted from poor research findings or insufficient take off funds but largely
due to deep vacuums created by a faulty relationship between the dream and the
dreamer. There has also been an erroneous mix-up on the difference between
passion and hobby.
There are some rules that need to
be followed if an agribusiness dream is to emerge into a bountiful business.
Have A Plan
The first business strategy after
nursing an ambition or dream is a plan. This is one of the most vital in
ensuring longevity and success in agribusiness. A plan in business is different
from voiced out intentions people usually utter. Whatever visions and dreams that
had metamorphosed into a quest for an agribusiness investment should be written
down into strategic and deducible templates. The plan forms the pivot and
launch pad upon which the dream becomes reality.
For example, if the business is
intended to run for five years with specific financial expectations, take off
manpower, location of business etc, they need to be documented in a format that
can be intepretable and implementable.
Whatever ideas you have nursed as
the visionary of the business after having been written down in primary terms
is expanded in what is known as feasibility reports. This technical stage is
usually done by experts in survey and research. They help to interpret and
enlarge the scope of your plans into advanced formats while also unveiling the
future of the business given the factors of production available from your
preliminary plan.
It is important to break down the
plans into manageable portions because being overambitious will lead to
frustration and discouragement. Write the steps to achieving your dream or
short term goals. List down 5-10 things you need to do to realize the steps or
objectives, which must be simple, measurable (quantify to enable monitoring of
progress), achievable within your resources and abilities, realistic and not
out of this world, with time frame or deadline for each objective
Identify A Need And Pursue
Uniqueness In Meeting Those Needs
Just like the saying ‘The sky is
wide enough for every bird that desires flight’; there is always a market for
every well planned agribusiness. One major trick that needs to be paid
attention to is that identifying a need takes you steps into living your dream.
So many agribusinesses have
crumbled while many are neck deep into competitive tussles all because they
either didn’t identify a major consumer need or the strategies of meeting those
needs were not original. It is advisable to create a unique style or approach
of your own without copying a brand. It is allowed to ‘learn from’ than to
‘imitate’ existing brands or competitors. Surviving a healthy rivalry stems
from a well rooted degree of originality of the competing brands. However, you
can cash in on the weakness of your rival brand and soar into success.
Who Are Your Customers?
The worst mistake to make is
setting up a business with no customer in mind. It is therefore advisable to
have a clear picture of a target consumer group for your produce or products
before commencing production.
For example, why cultivate
hectares of tomato without having a market for them? These are perishable crops
which do not have very friendly shelf life. This will spell doom for any
investor as the resultant loss will be huge.
It is advisable to find out who
your target customers are or will be either on the short term or long term so
that your products do not rot in the warehouse or perish on the fields.
Human resources, CRM, data mining and social media
concept – officer looking for employee represented by icon. Gender
discrimination in employees selection.
Draw Up A Marketing Plan
In realizing your agribusiness
dream, marketing of your products need careful strategies and planning.
Attaining a comfortable level of dominance in the market is the wish of every
business owner but several businesses with bright prospects do not reach their
target consumers because of faulty plans.
Why book a stand at an
international fair without first getting your products to the small retailer on
your street? Why book an hour on a radio show when your products could be first
showcased in small hand bills in traffic or public places.
It is risky to place the cart
before the horse if an agribusiness is to survive. If your target consumers are
in riverine and marshy areas, the plan of getting canoes should follow instead
of booking for convoys.
If your consumers are kids, why
select a road show without a clown or jester? If your products are to be
consumed in a hotel, why waste your time trying to convince a school to buy
them.
How you carry out your marketing
determines how far you will go in sales. The marketing plan is your master plan
and it should be consulted more than any other document.
Market research need not be
complicated
as
it simply involves – asking the right questions, getting information and making
decisions based on the information. Questions to address during market survey
include: What market am I targeting? Who will be my major customers? E.g.
households, supermarkets, school children, people in estates etc. What
are the customer’s preferences or what are they looking for. What are their
needs? Remember people will only buy what satisfies their existing need. Is
there any competition in the area for the product / service which I want to
offer? What are the strengths and weaknesses of my competitors? Take advantage
of the competitor’s weaknesses. How much must I sell per month and at what
price to break even and make profit?
Also, the price of your product
or service should recover the cost of production and earn a profit. A profit of
between 20%-50% can be earned depending on the purchasing power of your
customers, the price of competitors, and the inflation rate. Sale tactic – what
will be your sales approach or tactics? What would you do with spoilt products?
How will you advertise your product /service? e.g. through radio, internet,
newspaper, word of mouth etc. How will you deliver the product / service to the
customers? Bicycles, vehicles, internet or short message service can be used.
Market dynamics – the Market survey questions may change or require
modification any time during implementation of the project.
Draw Up Your Income And
Expenditure Budget
A successful business is that one
that gets more than it spends. Therefore it is vital to have a projection of
the income and expenditure of the business. It serves as a reminder for filling
loopholes in the production process and also to access the pathway of the
business.
If your capital is a grant that
needs to be settled, draw up the plan to include that.
Expect Turbulent Times
A ship leaves the harbor with its
calm, friendly waterfronts into fiercer turbulent tides. The captain before
pulling up the anchors makes sure that his wind vanes and other gadgets are
functional and can correctly indicate the direction of the wind. He also
expects that there may be icebergs along the raging sea among other unforeseen
risks while the voyage lasts.
This applies to agribusiness as
there can be change in demand, change in taste, legislation and other factors
that can pose threats to the business. Having these in mind will keep you focused
just like the captain until you can sight your destination after the harsh sea
waves and throw in the anchor to berth.
With the global economic downturn
and drop in global oil prices, the agricultural sector promises diverse options
that could guarantee food security while creating entrepreneurs. Just take that
bold step and flap your wings for the flight into the market.
Well,as you venture into this
investor friendly sector- agribusiness, this is wishing you good luck and see
you at the bank.
