`Farming is No different from any other Business, money is grown too` :- Mark Sosten
In my Experience, the excitement of starting is as strong as the misery of failing. – Admin
Share with others, Learn from others
In my experience, 70% of first time farmers fail!! Yes they harvest and sell and call it experience. Success has many definitions and i stick to the one i believe in which is “Achieving or exceeding set goals”. 30% of farmers do this, they set goals for profit, production, product quality and they measure their success on the outcomes. The only way to be successful in farming and anything is to first define it.
Back to farming, many people who want to venture into farming usually do so for a number of reasons but the most prevalent one being to attain financial freedom. That is goal number one. Here is where most of the beginners fail. The seeds of failure are planted early before you plant actual seeds in the soil.
Secondly research, the above information is probably useful to you. Most Beginners are excited by the hype of huge returns and lack of enough business knowledge before they venture into farming. Over the past years the agricultural landscape has changed from farming being a farmers reserve to it being a business.
When I first planted cabbages at my father’s piece of land in 2012 i knew the market price and the cost of seeds and then i derived the profits. I did not know that market prices fluctuate, that there was a lot of labor for harvesting, and that I had to transport them at a cost to the market. Some of them would not meet market quality and had to be disposed and they all fetched various prices depending on size, quality and the market location. It was too much work that i failed at. It made a loss.
Before you venture into farming consider these business aspects, they are very important in increasing the chances of your success.
When you harvest your crops what are the market prices going to be?
What affects these market prices and what can you do to minimize the effects causes?
How will you finance the venture to ensure you have money for day to day running?
What is your break-even point? Download the break-even point calculator spreadsheet.
What are the finance facilities available to you, e.g. a loan, personal savings, government funding etc.
Are you good with numbers or do you have to hire an accountant?
What are the logistics you need to supply and develop your products?
Do you buy, hire or lease?
What kind of skills do you need to produce your product?
How do you get the required people?
Can you manage them or do you need an assistant?
Those should give you an idea of the kind of mindset you should have before you start to farm. I have not included agricultural aspects like soil testing and crop selection so as to give you the business aspect of it.
Just remember that before you start business you have nothing to lose, and when you start you have something to gain but the process involves something to lose.
First Published : Courtsey of Farming Afrika