The Ultimate Business Guide To Poultry Farming

Go to chapter 13 of this eBook by clicking this link…“Projecting layer egg production”. Click here to find the next chapter.

Hello,

I’m glad to announce that subscription for my brand new training course, Poultry Project Reporter 2.0 is now OPEN.

​You can get all the details about the program right here.​

(https://poultryprojectreporter.com/)

So, if you’ve ever wanted to produce a 1st class poultry farming project report (with expert financial projections) my new program can help you do this, both accurately & quickly…even if you’ve never made a project report before.

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What Is Poultry Project Reporter?

Poultry Project Reporter is my new program that helps you deliver a professional poultry farming project report (inc. production model & financial plan) – from scratch.

It helps you build both detailed layer and broiler reports with ease – saving you time and hassle.

*No calculator or reference material needed.

(Plus, it does this in record time.)

With Poultry Project Reporter you don’t need to figure anything out. Or think “what do I do next?”

Need to do up a watertight proposal? I share the EXACT step-by-step system that I use to produce all my professional poultry project reports.

Need a winning financial business plan to project future earnings? I take you through scenarios leading you to the most profitable conclusion.

Need instant tailored reports for classes, clients & students? I built this system to deliver pro reports using a web app (including a bankable PDF version).

In short, this new program is the most comprehensive system for producing custom made, professional poultry project reports – anywhere.

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And here’s exactly what to expect inside this program…

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Fillable form based ‘multi-part software program’: This is the first true step-by-step system for building custom made poultry project reports from scratch. You get to develop and test various poultry farming production models, outline ALL your key financials, produce professional draft plans, find the perfect route to optimal profit over 6-years plus more.

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Bonus step-by-step Pro email course: Here’s where I share even more in-depth strategies, specific poultry project reporting techniques, and other helpful resources designed to help you succeed. This training material comes in the form of an email course, including detailed step-by-step workflows, insights and specific examples of “what’s going to work for your poultry farm report.”

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Insider strategy checklists: I give my professional insights on “how investors REALLY read project reports” and what you should look out for in yours.

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Proven metrics and calculations: Only the most reliably sourced poultry business measurements and parameters are included in this program for the most accurate results.

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Advanced profit tutorials: Pinpoint where to squeeze out yet more profit from your chosen model. Learn the optimal tweaks to make it even better each time round.

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Bonus MS Excel dashboards: Get my raw data spreadsheets providing 360-degree, bird’s eye panoramic view of every common poultry production model – both layer and broiler. This is the input mainframe to the web app.

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Unlimited consulting: Your agency package comes with 90 days of unlimited consulting (via email) directly with me.

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24/7 responsive program support: Here’s where you can reach out for help with finding your way around the program, get troubleshooting assists to your questions and problems, and all-in-all, have access to a support desk used to dealing with project reports just like yours.

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…and there’s a whole lot more.

I cover everything you need to know about this new program right here:

​Learn More About Poultry Project Reporter.​

(https://poultryprojectreporter.com/)

Long story short? I opened access to Poultry Project Reporter. And you are invited to join today.

Speak Soon,

Temi

Go to chapter 13 of this eBook by clicking this link…“Projecting layer egg production”. Click here to find the next chapter.

Go to chapter 12 of this eBook by clicking this link…“Poultry Project Reporter 2.0”. Click here to find the next chapter.

I’ve got two things for you today:

Thing #1

In my next lesson, I’m opening the doors to my all-new premium business planning program, Poultry Project Reporter 2.0

This new program will help you deliver that winning poultry farm project report (financial plan) from scratch, step-by-step.

And in no time at all.

I’ll send more information about Poultry Project Reporter 2.0 tomorrow. So keep an eye out for that chapter.

Thing #2

Like I mentioned in one of my first chapters…

…when planning a poultry business, it’s important to tread carefully in decision making.

Being decisive does two very beneficial things:

1. Cuts off wasteful diversions & distractions
2. Gets the right things done (profitably & quickly)

The combined benefit?

In a word, or two – OPTIMUM EFFICIENCY.

(Sounds good, but what does that really mean?)

a. optimum from Latin optimus meaning “best, very good”

b. efficiency from Latin efficere meaning “to work out, accomplish”

Put them together, you get:

To get things done (finish them) in the best possible way. The result being “very good (couldn’t be better)”.

A lovely idea.

However, often things don’t immediately go this way.

In business and life generally,

Mistakes are both common and, of course, costly.

They cost you both time and money (and/or other resources).

And because all of life’s material matters are finite, this reality adds only greater injury…

…so that, if you’ve wasted time or money the impact is ALWAYS much bigger than the initial paper loss.

Why?

Because of one KEY (hidden) factor:

Opportunity cost.

Let me explain:

Want to find the real cost of waste in business?

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THE BREAKDOWN:

Here’s the real cost…

Don’t just count the value of the material loss –

But ALSO count the value of what you could have gained should you have used it (the opportunity) profitably.

Just think it through…[the following may take a few minutes, but stick with me here.]

Say you started a poultry farm.

It took you 3 years to plan, 1 year to acquire, you left your job, you used all your savings (plus a small Gov’t loan) and did it on land you acquired.

You buy your equipment, your chicks and you launch.

Things start slow, start to grow and then get busy.

You spend 12 hours a day on it: handling the birds, dealing with suppliers, keeping customers happy, planning marketing, overseeing staff…

Hard work but you enjoy it. Your flock is healthy and you have good sales.

From this, there is cash flow and you feel things are going in the right direction…

But somehow, when you look at your bank balance, it’s negative.

You find yourself paying out all that’s paid in, leaving nothing left for you.

And what’s worse is that all your time is taken up, with nothing to show.

You look at the numbers and you blame your cost prices being too high and sales prices being too low.

You take action.

But still you lack the margin to make it worthy of continuing.

You ask for help and begin to study ways to make a turn around…

…but it all seems like a case of “too little, too late.”

With mounting costs and owing obligations, you see where it’s headed & you decide to bail (before things get worse still).

You exit with a hard stop selling off the equipment second hand and the flock to another local farm.

You steady yourself back into employment and chalk up the loss to inexperience.

But the gnawing thought keeps pricking your mind:

“How much did all of that really cost me?” (And, of course, “how could I have avoided this?”)

You sum up.

And between the savings and remaining debt on borrowings you arrive at a round figure.

Anyway, as painful as it feels, you reckon in perhaps 4-5 years or so of employed earnings (& saving up), you could get back to square one.

NOW STOP RIGHT THERE.

(Spent savings & acquired debt only amount to material loss.)

But what about opportunity cost?

Let’s take a look at what the sum of wasted monies REALLY look like:

Add to the material loss…

(a) 3 years planning time (desk research etc.)

(b) 1 year acquisition time (meetings & scouting trips etc.)

(c) loss of employed income in the meantime

(d) what your land could have profited you if it were used…well…profitably

(e) 6-12 months of operational time involvement (x12 hours per day)

(f) general inflation – prices only go up, year-on-year (yesterday’s money WAS actually worth more than today’s devalued cash)

(g) business earnings you’ve missed out on above and beyond what your old job would have paid you

(h) asset (transfer) value for exit sale

When you compare the two costs – well, you can’t really compare:

​

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When you get a real idea of the true scale of the loss – you see how IMPORTANT making the right decisions in the first place, really is.

To put a figure on it’s value…

…we’re probably looking at decades to recoup the true losses.

And comparing the earning potential of employment to business ownership, your old job at best offers very static/inflexible returns (& going back to that route, you might never overtake your mistake).

Business growth on the other hand is uncapped. You can literally MULTIPLY your earnings rapidly within only a few cycles of trade.

So, even if the first attempt was a loss – getting things right the second time might overshoot you into clear profit, perhaps only in a year (even months).

So, in light of this we ask:

How can we confidently do things differently in business?

Or even better,

How can we start up a poultry farm with optimum efficiency?

The KEY?

Decision making.

Let’s start today by establishing a CLEAR, financial route to producing long term poultry farm profits.

With that:

In your next lesson, I’ll invite you to join my brand new business planning program, Poultry Project Reporter 2.0

Yes, I’ll send you what’s in the program, how much it costs, and how it can help you. I’ll also help you decide whether or not this program is right for you.

So keep an eye out for the next lesson.

And we’ll speak together then.

Speak soon,

Temi

Go to chapter 12 of this eBook by clicking this link…“Poultry Project Reporter 2.0”. Click here to find the next chapter.

Go to chapter 11 of this eBook by clicking this link…“Opportunity Cost”. Click here to find the next chapter.

Hello,

​

I’m about to define two KEY business planning tools SWOT and PESTLE,

PLUS, I’ll reveal their importance for your future business success.

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(But first, bear with me, as I have a short story to lead you in gently…)

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When I was a boy, I hated homework.

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(It’s a strong word, I know – but I have to be honest.)

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My feeling, then, was that

“I have already spent all day in studies,

So why then must I continue studying at home as well?”

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In my thinking as a child, home time was free time.

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How simple (foolish) was I.

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Another thing you need to know about me as a child:

I had not known the heat of battle one day among a thousand.

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And accordingly, anything that therefore that seemed to me like hard work was surely to be avoided.

(There’s a word beginning with ‘L’ and ends with ‘-azy’ that belongs here somewhere…)

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Thankfully in my latter years, the reality of life as an adult man in this world have served me well by teaching a KEY lesson:

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Ease is fruitless,

But there is profit in labour.

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In my adult years to date, several circumstances have woken me up to the ESSENTIAL value of hard work.

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I discovered a Golden Rule:

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I simply saw that without hard work,

“You don’t eat. “

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Also, when you waste chances to do well (…being late was my habitual failing),

You don’t know when the next chance will come around…

…And in the meanwhile, you wait – hungry.

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(But as I came to learn, our good friend HUNGER does wonders for transforming a person’s priorities on life.)

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Take professional sports, for example –

Hunger in that arena is an absolute essential quality for survival:

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So,

With such experience of failure in my younger years – I too got serious…

…I got hungry.

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I said, if given the chance again…

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1) I’m going to work hard continually – every hour, of every day – I won’t stop.

2) I’m going to prepare SO well that every chance will convert into (some) profit.

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“Fine, Temi, so now you’re hungry…but what happens when you eat and become full?”

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Perish the thought!

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Having been taught by life’s lessons,

I now see that EVEN if I am full,

There are always others who hunger –

Who need a willing and helping hand.

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This is motivation enough to stay hungry.

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Because of this fact,

I have no excuse to rest.

Nor retire…

Until I’ve done all I can to fulill the needs of my neighbour, like I would for myself.

And given it all to the end.

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This attitude, I have learned, promises great reward in life,

And is the essence of service.

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(Service = the life and soul of business.)

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To give.

Not to take.

Once you’ve given, men will vote for you with confidence,

And their gifts will far outweigh whatever profit you would have counted for yourself.

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But how does this all relate to your business?

And why is the title of this email SWOT and PESTLE (when I am yet to mention them).

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Now,

​

Here it is:

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The bottom line of your future business success sits squarely on points 1+2 above.

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The first, “…work hard continually…“

I can’t help you with.

(No one can teach hunger, you either have it or you don’t – but without it, you won’t last.)

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The second, “…to prepare SO well…“

Now, that IS something I can help you with.

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So,

a) How SHOULD you prepare for business success?

b) And why is it so important to get as much value out of preparation as possible?

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Answered in reverse order…

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What’s the IMPORTANCE of preparation?

It comes down to one word: waste.

In business (and life), you have one chance to do well with what you’ve got in your hand.

Do well, you profit (get more).

Do poorly, you lose (the thing you had before, is now gone).

Losing is bitter.

Winning is sweet.

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HOW should you then prepare?

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Like this:

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(There’s no debate that sports in these days is BIG BUSINESS…take the NFL National Football League in the USA)

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The teams in this illustrious league of ‘physically combative business professionals’ all have one thing on their mind:

Winning the championship.

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The key to winning?

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You only need to look at the payroll of the teams to know where the value is…

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​

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There we have it:

Head coaches are the MOST prized people internally. Above every star player.

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But what do coaches actually do?

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In a nutshell, they get the troops together in array and drive them to perform.

And the key to being a successful coach is planning and preparation.

Once that is all laid up,

It’s about doing EXACTLY what was on paper – on the field.

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The result?

(Should be) VICTORY.

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But how do coaches design their winning formula for success?

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Here’s a day-by-day look at game-planning in the NFL (National Football League in the US) with the 2018 Super Bowl Champions, New England Patriots:

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Step #1: Grade the film

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– This is an (IN)TERNAL AUDIT of what has already happened, and identification of where mistakes cost them.

It’s highly detailed and step-by-step – a ‘no holds barred’ approach.

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Step #2: Considering the next opponent

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This is an (EX)TERNAL AUDIT of what the opposition they are scheduled to face look like.

Again, this is also a detailed cross-examination (from afar),

But this time of the opposition’s capabilities.

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Step #3: Producing the game plan

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This is where all the previous analysis comes together to blend a winning game plan.

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Strengths and Weaknesses of past performance evaluation…

vs.

Opportunities and Threats of future competition.

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SWOT.

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Step #4: Roles and responsibilities

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According to the game plan…

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…getting each team member prepped for their personal contribution towards the expected victory is vital.

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Explicit instructions of each phase of play are dealt out with importance laid on when, where and how things should be done.

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Step #5: Repetition and focus on turning points (make or break)

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Once everyone is ‘on page’ with how things SHOULD go,

It’s time for some scenario planning.

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In other words,

Deciding what the response should be if (when) things DON’T go according to plan.

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These scenarios could be categorised into the following:

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Political – what if we don’t hold our positions and lose discipline?

Environmental – what if the weather and field conditions get tough?

Social – what if we begin to crack under pressure and fight each other?

Technological – what if the opposition change their strategy? Or we lose key players?

Legal – what if we get penalised for unlawful mistakes?

Economic – what if we are wasteful with our chances?

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PESTLE.

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Step #6: Refinement (whilst you still have time, keep working at it)

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When you’re in the field, it’s simply too late to prepare.

And after the battle is fought, there should be no regrets.

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Use your time well.

Rehearse (you’re never too good to practice.)

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Step #7: It’s game time

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The time for preparation has ended,

It’s time for kick-off.

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Opponents meet for battle.

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Players take to the field,

The arena where victories are won and lost.

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My question to you is…

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Has your business planning team done its SWOT and PESTLE big game analysis?

Are you prepared for taking home the victory?

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(If you’re still planning, I’ve got just the thing for you…)

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Introducing the SWOT and PESTLE business analysis template

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My all-new SWOT and PESTLE business analysis template will help you get your team:

• match focused and fighting fit
• strategically sharp and ready for winning your market championship

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Find the template here (you’ll need to subscribe and sign in to use them).

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And now over to you…

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Are you currently producing a strategic business analysis?

Have you found it difficult in the past to get your head around market analysis?

​

Either way,

I’m interested to hear from you.

I read every comment.

​

Speak soon,

​

Temi​

Go to chapter 11 of this eBook by clicking this link…“Opportunity Cost”. Click here to find the next chapter.

Go to chapter 10 of this eBook by clicking this link…“SWOT & PESTLE analysis”. Click here to find the next chapter.

Hello,

One of your key desires when agribusiness planning will be to establish:

Control.

Making sure the things you plan to do are done with nothing more spent than expected.

This keeps the reins on your Return On Investment.

Making sure what you get back from what you put in was worth it for everyone involved.

Where the controls of your business run away from you, disappointment is close by.

This is why project management is critical to business planning.

Especially in agriculture.

Where variables affecting performance are especially exposed to the natural environment…

…it pays to keep a diligent handle on control.

But how should we approach grasping control of business projects effectively?

If big business is anything to go by, project management discipline is the solution here.

Is your farm business a ‘project’?

According to the Association for Project Management, a project is a…

“…unique, transient endeavour, undertaken to achieve planned objectives, which could be defined in terms of outputs, outcomes or benefits.”

A bit long winded (I know) but actually a VERY accurate and substantial definition.

What is the definition really saying?

And does it actually apply to your business?

You may never have considered your business to be a project.

But I am persuaded by definition your farm business is just that.

Here’s 5 solid reasons why…

#1 Unique – there is no other business on earth identical to yours.

Your staff, your vision, your situation, your environment – these factors cannot be replicated by another farm.

This means the way you approach your business must be different to all others.

Although your business might share similarities with others, it isn’t EXACTLY the same. This demands caution and careful decision making. Assumptions can be costly.

#2 Transient – your business is (will be) constantly changing.

Business never stays the same. Markets are continually influx. The peaks and troughs of supply and demand pressure is one long rollercoaster ride.

Being prepared for absorbing the effects of changing business conditions will give you staying power.

#3 Endeavour – your farm business experience will be a journey. Whilst you are in the driving seat, you are yet to reach your destination.

You need to remain vigilant the entire trip in order to have success. Knowing where you are, where you are going and how you are going to get there.

#4 Planned Objectives – one word, target.

Knowing what you are aiming at and whether you should be one track of achieving it.

Quantifiable and qualifiable. This means, targets defined by numbers as well as words.

A business should never be run, just to make money.

How much money is enough? And for how long? To make it a rewarding experience, you need to be specific.

#5 Outputs, outcomes and benefits – what you want your business to do (give back) to all involved, and why…

Outputs, outcomes and benefits. Your business is a vehicle for getting you somewhere.

It isn’t just a cash cow. It should offer you transport for taking you along in your life plans.

Engineer it to do so from the beginning and you shouldn’t lose your way.

What is project management?

Source: Association for Project Management

This again is quite wordy.

But essentially, you can take away that project management is…

…the way you do things to have a good chance of achieving your goals.

Key words here are: processes, methods, skills, knowledge and experience.

These all make a difference in increasing your potential for business success.

Why is project management important for agribusiness planning?

Agribusiness success is measured in yield.

In other words,

What you get out (and how much you get out) after you put in.

Yield is a derivative or a benefit of production (fruitfulness, to bring forth).

Production is largely affected by process, method, skills, knowledge and experience.

Improve these and you improve yield. This means more profit in your pocket.

What does project management do?

Project management optimises.

It is a discipline that makes the most of your situation and helps you develop your business to the utmost.

This is where true profitability comes in.

Bigger doesn’t always mean more profit.

Remembering that profit is a function of efficiency i.e. how well you use what you’ve got.

So smaller leaner business models can in many ways be far more rewarding than larger more cumbersome ones.

More bounce per ounce.

What does it look like?

Key tasks of project management are documenting, tracking, recording, analysing, reviewing, digesting, building up…

These all help you keep tabs on what is going on and primed to make the best decisions.

Control naturally involves much detail.

But the more detail you accumulate, the more organised you’ve got to be to use it well.

Project management frameworks (organisational & administrative systems) have been produced over the years to help with this.

But the general idea is go with what works.

Where frameworks lack flexibility, you would be encouraged to innovate or adapt for best results.

What are the benefits?

The benefits are the same as when you calibrate or fine tune an engine. More output for the same input (or even less input).

Greater efficiency and effectiveness. Each improvement has a knock-on effect of benefit for the entire system.

A greatly improved performance getting you to your end goals quicker and with less cost.

Does project management help beyond the planning stage?

Once you’ve got your business set-up right, it’s only just begun.

You now have to keep it running at the right pace and in the right pattern to win your race.

So, project management or controlled running is key throughout your tenure as owner.

This involves monitoring, analysis, process re-engineering and improvements and evaluation.

These are all core functions of project management.

So long as you need to keep control in business, project management is your key helper.

Is it practical or all theory?

Project management is supposed to be very practical.

It’s supposed to dovetail. Supporting you and your business doing better on every side.

It shouldn’t be a laborious desk exercise and an administrative burden.

It should be a real-life profit enhancer with immediate to long lasting results.

Will it help my bottom line?

Yes. In fact, the very act of defining your bottom line IS project management.

The only way to gain control of your business is to set out to do so.

The key to this is project management. It is a purpose built discipline for getting results with your farm.

Embrace it and win.

Now over to you…

Are you currently planning the management of your poultry project?

Have you already managed poultry projects?

Either way, I’d be interested to hear from you.

(I read every comment.)

Speak soon,

Temi

Go to chapter 10 of this eBook by clicking this link…“SWOT & PESTLE analysis”. Click here to find the next chapter.

Go to chapter 9 of this eBook by clicking this link…“Agribusiness Project Management”. Click here to find the next chapter.

People buy value.

Not products, nor services.

People invest.

In other words,

We don’t mind giving away something today in order to make a gain on this tomorrow.

In relation to your business planning, this is a much bigger concept than you think.

By understanding this concept alone…

…you can NEVER run out of profit-making ideas in any market.

Whether in an up economy or down economy.

Sound impossible?

It isn’t.

And there’s no catch to this…

[Other than hard work of course, then again…we’re not afraid of that]

Here’s how value can work for your farming business –

I call it, Value Leader Marketing…

The agri value chain

Agricultural products start off as raw ingredients.

Whether crops or livestock, they are:

• grown,
• brought to maturity,
• taken and prepped for market,
• sold (perhaps many times over) and,
• end up on the meal table.

The entire process is called a value chain.

Here’s an example of the poultry farming value chain…

Source: Arbor Acres

Simply follow the red arrows down, you’ll see value being added.

Straight from parent stock management…

…all the way to retail.

Every step of the way, a participant in this chain receives a pass & then passes on until,

The goal is scored at the end i.e. chicken meat lands on the table of a household.

Without the cooperation of each participant in the chain,

You simply would get the chicken at the end.

What’s missing?

A big omission in this broiler chicken value chain example from Arbor Acres is:

Feed & supplements.

Accounting for up to 70% of direct costs + your primary farming input,

A great deal of your value-added,

And costs incurred,

…comes from this category alone.

Aside from this, you have also:

• Equipment dealers & manufacturers
• Cleaning products providers
• Support services

Every participant within the chain (& supporting it), much like a relay race,

Does their bit to safely:

• receive
• and then to pass on

…the valuable cargo.

Teamwork.

Seamless. Efficient. Selfless. Focused on the end goal.

Adding value.

Demand generation

What drives the chain is downstream demand.

Every step, or link in the chain, is directly dependant on the link immediately after,

And also cumulatively,

…on the subsequent links further down the line.

Much like plumbing:

1. What draws water through the system is use of an outlet (tap) at the far end.
2. The water only gets delivered properly if the pipes
   1. Hold up and don’t spring leaks
   2. Run freely without blockage
   3. Don’t leach contaminants into the supply

But all going well, there is a great benefit for the end user…taps, showers, heating etc.

The same applies to the farming value chain.

The outlet (tap) are the hungry households needing feeding, every day.

The table above gives an idea of the national demand for chicken meat, from the top 10 chicken consuming countries in the world.

[Per capita = per person per year.]

That’s a lot of demand.

Enough for not only domestic production, but also for international export too.

Then again,

The figures above are:

• Macro (big picture, large scale)
• Based on current consumer trends

What influences these figures?

And is there any way a value chain can influence (even, GENERATE) demand?

Source: Al.com

From this US example above, it is clear that by offering:

• a more versatile array of products (processing),
• at a competitive price to alternative meats
• with a homegrown flavour

…it is possible to generate significant economic demand for your product.

Source: Al.com

Here we see that dietary trend or even fashion can have a knock-on effect on bottom-line poultry sales.

These are just some of the ways in which participants in the farming value chain can encourage consumer demand.

Tighter communications and data integration with retail can assist farmers with foresight on-trend.

But that’s just B2C (i.e. what business can do to increase consumer demand)

What about B2B?

Say you are a hatchery,

Your business output is the supply of day-old chicks to farms.

When a farm is ready to buy a new batch, they would come to you.

However,

How can you make it that they should come to you?

Simply, add value.

Here are just a few broiler farm targets, which are directly impacted by your hatchery business:

• Mortality rate / liveability
• Health of flock
• Ability to adjust to farm conditions
• Feed conversion
• Growth rate
• Product quality
• Gross profit

This is your value checklist.

Properly promote your value-addition to each of the above-listed value categories,

To existing farmers as well as new entrants,

And drive demand for your hatchery business.

Become a most valued participant

Given the example above, we can see how proper promotion of value-addition can result in increased demand.

Now multiply that.

If every participant in the marketplace refrained from just selling,

But rather took ownership of adding-value to the entire value chain – the results would be MASSIVE.

The rub-off for the industry or niche would be increasing consumer demand.

Open taps, everywhere.

And adding value is simple.

It’s all about giving somebody else something that will help them do what they do:

• More effectively
• More efficiently
• More profitably
• More consistently

In a word, SERVICE.

But is value all output for no return?

Remember what we said at the beginning,

We don’t mind giving away something today in order to make a gain on this tomorrow.

There is a very real and rewarding return on giving value.

The only caution, however, is:

You need patience.

Just like any other type of financial investment,

You set out a plan, make the trade and WAIT until the date when you redeem the reward.

So, what’s stopping you from dominating value in your marketplace (or being the biggest giver)?

Well…

Where do you start?

Step #1: Know your value chain

• Much like the diagram earlier on with the downward arrows in the poultry value chain, simply map out the participants in your space.

Step #2: Know EVERYBODY’S business

• No longer just be concerned with your direct customers
  • Value every participant’s contribution
    • …every link presents a potential for your business to give (invest) value
• Speak with participants
  • Interview decision-makers, managers and front end service staff
    • …get their point of view on what they want to deliver to their customers

Step #3: Pull together a library of value ammunition

• Collate a resource bank of value nuggets (for each participant group)

Step #4: Produce a value profile for each participant group

• Summarise a general narrative on value for every link in the chain
  • […attach facts and figures to the conclusions drawn for justification]

Step #5: Draft a value strategy

• Plan a vision and course for how you will deliver value to each participant group
  • …a high-level document with definitive values laid out.

Step #6: Detail a value action plan

• Step-by-step plan of action of how you will hit the mark of value throughout your chain
  • …include a budget with processes & procedures – named personnel responsible for activities also. [Like a project plan.]

Step #7: Feedback communications & measuring success

• Value is built on maintaining good communications
  • …provide clear channels of 2-way value conversations with every participant group
  • …value is constantly moving – remain nimble with your ability to respond to changes in the value conversation
• Your investment in value WILL HAVE bottom-line profit impact
  • …know where to look and how to account for your value ROI

Talking of Return-On-Investment – what rewards can you expect from spending so much on value?

Here’s what a retailer (for example like a wood timber shop) could expect from leading on value in their market:

Source: Small Business Marketing Professional

The reward of becoming the value leader in your market is that you will be the most valued participant.

Your B2B and B2C neighbours will vote with their favour in:

• recommendations and referrals
• better public relations
• economic savings

…in summary, a much more profitable business.

And long-lasting effects too.

This means multiplying the money flowing back into your business,

From every grain of input spent.

The bottom-line…

Giving value will cost you, but will be profitable.

And long-term sustainability of your business, therefore, relies on your ability and willingness to give: value.

Giving value takes strategy and exercise of genuine care for the needs of others.

Plus, you’ve got to be patient and wait for the harvest of reward.

BUT – the rewards are well worth the wait.

Try it.

Now over to you…

Are you well aware of your agri value chain?

Have you only just heard of value chains?

Either way, I’d be interested to hear from you.

(I read every comment.)

Speak soon,

Temi

Go to chapter 9 of this eBook by clicking this link…“Agribusiness Project Management”. Click here to find the next chapter.

Go to chapter 8 of this eBook by clicking this link…“Agri Value Chain”. Click here to find the next chapter.

One of the most popular questions for any business consultant will be,

“Where can I get funding for my business idea?”

I receive enquiries like this regularly.

And if you ask me, this is the wrong question to ask.

As the old adage goes, ask the wrong question – get the wrong answers…

Or even still, get no answer at all.

To lead someone to the right question…

…I always ask:

“Why do you think you need funding?”

The person answers,

“…to buy land, buildings, stock etc.”

My response…

“Why do you want to buy all this for a price you cannot afford?”

By this they are often confused.

If you are confused by this too –

Then this email will help you see a better (more sustainable) approach to funding your start-up farm…

…without borrowing money.

Firstly,

The truth about finance

Finance is the acquisition of money, at a cost.

In other words, buying money.

If you can get your head around it, you’ll understand the rest of this no problem.

You might be thinking at this stage – “I thought you used money to buy things?”

Whilst this is true in most commercial markets,

It isn’t true of the commercial money markets.

They are the one place where money is the product.

And you buy it with money at a delay of ‘X’ months.

In other words,

You buy money today, at the price of money tomorrow.

The cost being the interest charged on the money tomorrow.

This interest charged is the difference in money taken by your lender…

[Often received as money on top of periodic repayments]

…justly taken for the service of giving you the enjoyment of having money today, which you never had.

This is the basis of finance.

The problem with finance though is manifold.

Here are just a few issues:

#1 – the value of money is depreciating:

• What does this mean?
  • A certain amount of money today is worth less tomorrow…why?
    • Because the cost of living continually increases, never decreasing
  • This is an additional cost which silently strips away the buying power of your money.
  • Interest is usually charged over and above inflation
    • So, the lender doesn’t lose out…
    • The borrower absorbs this cost and repays at a rate to compensate the lender

#2 – the agreement to borrow money is legally binding:

• What does this mean?
  • Can’t pay? Tough, you MUST pay. You will be forced to. By courts of law.

#3 – default and lose everything inc. security like your family home:

• How?
  • Lending in business is often secured against an underlying asset.
  • Where there are unlimited losses, and default – the borrower may end up having their personal property seized and forcibly sold.

#4 – often the benefit is not worth the cost (or potential loss):

• What are the alternatives?
  • Starting smaller, operating within your means takes longer to reach critical mass, but…
    • All gains along the way are yours to keep.

Loans

Loans are when a lender gives money today to a borrower who meets certain criteria.

The criteria relates to the borrower’s credit worthiness.

In other words,

How likely it is that the borrower is going to be able to pay the lender back as promised?

Loans often have monthly repayment terms.

This means…

…from the first month of trade,

A farm may be liable to begin making repayments to the lender on the amount owed (+ interest).

The problem is, as with any agricultural business growing from scratch,

You need to operate for some time initially before your crop/harvest/stock matures to give you profit.

In this interim, you will be forced to make loan repayments out of your own pocket.

It isn’t until your farm turns a profit that, you will be relieved from this duty.

The argument is that if you are willing to self-fund the seedling stage…

…why not completely bootstrap the venture? I.e. start small and gradually grow within your means.

A loan, therefore, would be unnecessary.

Gov’t Subsidies

In error, some consider a government subsidy to be equivalent to a grant.

Without cost.

This is not the case.

Have you ever heard of a back-ended subsidy?

Popular with lenders like State Bank of India, for assisting the start-up of new farms.

Subsidies are monies that either the national or local government have promised to pay the farmer…

…when, the farmer has paid back a commercial loan in full.

Often governmental bodies will offer a percentage of total borrowed loan funds,

…like 25%.

In which case,

25% of the total borrowed funds is given as a cash injection paid to the farmer as a capital lump sum,

BUT, only when the commercial loan is paid back.

This benefit of this method, of course, relies entirely on the farmer’s ability to acquire and repay their own loan agreements.

If keeping up with interim payments of a loan is a distant possibility,

Then such a subsidy would not make sense.

Governments use subsidies to encourage or oil the gears of commercial lending to particular sectors.

Agriculture is one such area that governments favour giving subsidies.

Why?

The produce puts food on the nation’s table.

This productivity is always encouraged by the government.

The downside for farmers though is you need a loan to qualify.

A better way

Have you ever thought of asking directly for what you need?

[Rather than asking for the money, I mean.]

Put it this way,

Banks buy and sell money – alongside other financial products.

They earn money by taking a margin on every trade that lands on their table.

If you don’t have the money to buy goods or services,

You CAN approach your bank for a loan.

What will you need to get one?

Creditworthiness and a solid business plan or project report.

Your plan or report is your written case for what you intend to do and why your bank should invest.

It is collateral.

If persuasive, and you seem to have a track record that implies your trustworthiness,

Banks will lend.

But if you expect your business plan to persuade commercial money lenders…

…why wouldn’t it ALSO persuade:

• commercial suppliers,
• partners, or;
• landowners

…for example?

You don’t want their money, but you would prefer their:

• livestock feed
• equipment
• land

Not for free, but in exchange for long term business, once you are up and running.

For the sake of them giving you an initial kick start for say, 3 months…

…A potential partner or supplier might gain years worth of profit in liberal gratitude.

Present your pitch in your business plan.

The bottom line…

The effort it takes to acquire finance for money, may as well be used to directly get the things you need, like:

• supplies
• support services
• land
• buildings

Money drops in value continually because of the rising cost of living.

Therefore, it is better to handle goods and services (inputs for production), than to handle money.

Your business can convert such inputs into profit which increases your monetary value.

Use your business plan as collateral to gain support where it matters most. For profit.

Now over to you…

Are you currently applying for funding to start your farm business?

Have you already received funding for your project?

Are you starting sustainably?

Whatever the case is, I’d be interested to hear from you.

(I read every comments.)

Speak soon,

Temi

Go to chapter 8 of this eBook by clicking this link…“Agri Value Chain”. Click here to find the next chapter.