“How do I start my own Agricultural Business” has been a question in the minds of so many. We have tried to answer that question in this article.
It is no news that agriculture is a very essential and important part of everyone’s life.
If you plan to venture into agriculture, there are agricultural business categories which you will fall under. They are:
- Productive Resources
- Agricultural Commodities
- Important Services
The productive resource category includes seed, fertilizer, energy, machines, and many more.
On the other hand, the agriculture commodity business category includes processed and raw commodities of fiber and food, while the important service category includes insurance, storage, credit, transportation and many more.
Now, let’s answer the question: how do I start my own agricultural business?
How Do I Start My Own Agricultural Business
- Establish goals and objectives
- Create a business plan
- Create a production plan
- Implement the plans
- Monitor performance
Establish goals and objectives
A sustainable business in agriculture has to begin with establishing your goals and objectives. At this stage, you identify the values that are most important to you and write them down.
You also have to put down what you plan to accomplish with your business. You can then set specific, measurable objectives. The key is measurability, without measurable objectives, it will be difficult to determine if you are on the right track or not.
It is also important to note that setting objectives might take time before your dream plan can be captured.
Create a business plan
Creating a business plan is so essential. Writing a business plan can uncover roadblocks to profitability. This includes start-up costs and marketability. To have an effective plan, you need to consider initial investment, product demand, estimated annual gross and net.
In your business plan, you need to consider marketing avenues as well as risk assessment. Asides from that, you need to devote enough time to marketing. Small businesses often benefit from direct marketing and this helps products command a premium price.
Create a production plan
For your business, there should be a production plan. In your production plan, you must consider the weather, soil type, water, production methods and production quantity.
Weather/Climate: researching and choosing the right weather condition for the plant or animal will be less risky from start.
Soil type: Be realistic about soil limitations and regular management needs. This will lead to fewer surprises after you have made the initial investments.
Water: plans on starting your agricultural business will not be complete without considering the source of water. You will need to install watering sources besides rainfall. Sometimes water developments can be expensive, therefore, it is advisable to recognize your water needs and plan for them in the start-up phase.
Production duration: It is important to calculate the amount of time it will take for your business to turn a profit. This will help you know the rate at which you should produce. That way you can make a profit all year round and most importantly keep your consumers supplied during off-months.
Labor: For the first few years of your business, you should expect to work long hours. However, there will be a point when you will be needing some form of help. Therefore ensure you make plans for that.
Implement the plans
Your project implementation must be more specific than your business and production plans. Though you have your business plan, it is necessary to describe how you plan to implement those plans.
Describe how you will implement your strategy and create a to-do list with a timeline. This will eventually help you stay on track.
Implementing your ideas can be challenging but with research and preparation, you can take that leap of faith.
Monitoring your business performance is not something you can do away with. Monitoring your performance will help you identify areas that need attention. It will also help you know whether you are on track to meeting your goals.
Running a sustainable agriculture operation is an evolving process. Monitor your routine and ensure you modify your business plan, your production plan, or even your goals when the need arises.