Getting from Idea to a Profitable Agribusiness
Get Over the Myth
There is a common myth that agriculture-related ideas are simple to implement. I have lost count of hearing people saying things like……all you need is just to plant a seed, take care of it and sell once the harvest comes………This might also be the reason I have had many tales of people losing their investment in one form of agribusiness or the other. It is not uncommon to have people establish a farm before knowing their customers or know where, when, or to whom the harvest will be sold. Simply put, just like any business, agribusiness is not simple. Having a great idea is never a guarantee of turning the idea into a successful business. For every great idea that has shaped our world, there are thousands of seemingly great ideas that have flopped. The principle is the same, maybe even more complicated, for an agribusiness idea.
Who Is Your Customer?
When it comes to turning an agribusiness idea into a reality, you need to think and plan through all the components and processes that would help create, deliver and capture value. In order to succeed, a great business idea needs a great business model, and they are not the same thing. First, you don’t have a business if you don’t have customer. If the customers don’t care about the problem your idea solves for them, its game over. Most customers won’t care about all you went through in producing your tomato if there is a market glut. I know many farmers that had to plough their cassava into the ground last year. I have lost count of many poultry farmers that have gone out of business because there is no sync between the value the farms create and the customers’ need at the time.
But even if customers love your value proposition, you can still fail if your business model is not scalable and financially sustainable. In order to translate your ideas into a successful business, you’ll need to find reliable channels to reach and acquire your customers. I would like to draw your attention to the keyword here “YOUR” customer, not an anonymous group of people with no defined identity. Many agribusiness fail because they have no idea who their customer is. Beyond knowing your customer, you’ll need to build an infrastructure that won’t collapse as your business begins to grow. Failing to do just one of these things can mean death to your business however great your idea is. So, before you kick-start that seemingly simple vegetable production venture, that poultry, that advisory services, or any agribusiness idea you might have, search for the right business model to map the world of challenges that will come with the idea.
What is Your Business Model?
In 2004, Dr. Alexander Osterwalder designed the business model canvas (BMC) that makes it easier to explore these challenges, manage them, and plan for them. The tool he designed could help anyone with business ideas simplify and visually test the ideas, track progress, and avoid breaking the bank along the way. The tool makes it possible to design and test business models in a way that gives your idea a better shot at rising to the level of the great businesses that are shaping our world. Essentially, the BMC help you visualize what is important and forces you to address key areas. If you are creative, ready to work and have a passion for your idea, the BMC can help you navigate the treacherous water of validating your business ideas without breaking your back. I would recommend mastery of the use of BMC for anyone that truly desire to turn their agribusiness ideas into a successful venture.
There are nine essential building blocks that make up any business model. To get all the nine blocks working together, you have to answer all the fundamental questions that any business model must solve. Here are the list of the nine building blocks:
- Key Partners.
- Key Activities.
- Key Resources.
- Value Propositions.
- Customer Relationships.
- Customer Segments.
- Channels.
- Cost Structure.
- Revenue Streams
Profitable Agribusiness Webinar
To have a profitable agribusiness, it is essential to address the nine building blocks of the BMC and ensure there is synchronization between them. This is the reason we are bringing people that have deployed or currently deploying BMC in the development of their agribusiness ideas into a global success. In this webinar, we will be exploring the concept of “Profitable Agribusiness” and dive into a deep conversation on steps to take from ideas to reality when it comes to having a profitable agribusiness. If you have an agribusiness idea you hope to turn into a business one day, then, this is a webinar you don’t want to miss. If you have lingering questions on how to create value within agricultural space beyond just growing the crop or raising the livestock, pricing mechanism that captures more values, how to acquire customers and interact with them in a way that delivers more value, then don’t miss the webinar.
The webinar will be coming up on Friday, June 26th by 10.00 am Nigerian time. You can find more information about the webinar in the link below:
https://farmwella.com/register
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