Common mistakes you should never make with your agribusiness
There are no shortcuts to success in agriculture enterprises. Patience, hard work, diligence and planning are required. As a result, experts have listed a few things that an agricultural entrepreneur should avoid in order to thrive.
The get-rich-quick thinking
“Agribusiness in Nigeria and Africa is not a get-rich-quick scheme or lottery because its success is not down to luck but hard work, patience and planning,” wrote Jonathan Ogwumike, a data and business intelligence analyst.
He said that owing to the peculiarities of agriculture, sufficient time is needed for plants to develop and mature, as well as for animals to mature and lay eggs or become ready for the market. Thus, in the agro industry, payback on investment could take several months or even years. Though it won’t happen tomorrow and might not even happen next month or next year, your agriculture business venture has the potential to be successful and earn you millions of naira.
“Be patient, persistent and pursue your goal until you achieve it. Don’t get discouraged easily if you want to make it in agribusiness. Don’t be deceived by whatever you might have heard or read because you won’t become rich overnight.
“I lost a lot of birds in my first poultry farming experience before I gained more experience and it became successful. Therefore, do not promise yourself or investors high R.O.I when starting out a
new agribusiness venture, even if you plan to invest in the whole chain, from production to processing and eventual sales,” he said.
Copying others blindly
Most entrepreneurs just imitate what others do, so if they are endorsing something, they will also endorse it, and if they are launching new enterprises or stores, they will also launch new ones. Just try to be creative and focus on what you do best. Even if you are doing the same thing, what works for someone else’s business might not work for yours. The environment in which your company operates or even the level of experience the company has might have a significant role.
Doing business without a plan
The second is lack of preparation. The majority of small and medium scale enterprises are just there; they don’t have any marketing plans, goals or objectives; they just exist. They simply get dressed, go to their shops in the morning and wait for their customers. No plan showing how you will attract more customers and make more money. How will you expand your customer base? How are you going to make money for the business? This is critical.
No record for anything
Your inability to maintain books or records is a serious problem you must avoid as a small business owner, which means that you won’t know how much money your business makes each day, each month, or how much it costs to operate it. In general, you cannot decide what is best for your business because you cannot take decisions based on the record before you. Best decisions are taken by looking at the records.
Engaging the wrong people
If you engage the incorrect individuals to manage your company or help you, it will soon run into difficulties. Get someone who can be accountable in the business, someone who is qualified, passionate and has an eye for details. You can train them because some don’t even know the basics of mathematics, let alone what a sale is, and anyone can come along and ruin your business.
No control
In order for a business to function as one, it must have systems and procedures in place. As a result, you can delegate anything you want because you know that all risks and gaps in the business will be covered, which will allow you to expand your enterprise.
No well defined exit strategy
SwagCo noted that many investors fail to see the significance of having a well defined exit strategy when making agricultural investments. Without one, you can risk losing your money and receive very little to nothing in return. It is critical to have a plan for when and how to sell any investment you are considering. Whether you have a longterm or short-term goal, you should be clear about when you plan to sell and what kind of investment items you want to get out of your investment.