Most times as Agripreneurs, when we think of investors, we tend to feel that our potential investor(s) can only come from the ultra rich community. And so we end up missing the immediate potential investors around us.
The truth is, often times, your first set of potential Agribusiness investors are already in your existing network (family,friends, relatives, neigbours etc).
Some of your friends may not have the cash you need but may already have the item you want to buy with the cash or may have an important contact that can be helpful.
However, they may not be willing to go the extra mile for you if they believe you do not have the right approach to your business. As an Agribusiness owner, you always pitching your business to potential investors consciously or subconsciously.
How to attract Investors
1.Have a track record of success:
Forget about looking for investors. Yes, you are right! You read it correctly. It is not a mistake. Rather channel all your energy and resources into your agribusiness to make it successful.
It is actually easier to sell your success story about what you have done (even if it is on a small scale) than to sell a promising idea with great potentials.
It shows your ability to manage resources and deliver results. When people start seeing your results and commitment they will naturally gravitate towards you to help. The fact is that investors invest in people and not just business.
2. Sell yourself:
You must be able to convince and persuade people to buy into you first as a business owner before they can buy into your business. People must be able to see the entrapreneurial drive before they can entrust you trust with their money.
Even when it comes to multinational companies, investors and shareholders only invest when they believe in the leadership of the company. This is why some companies experience either a rise or fall in share value whenever there is a change in the management of the company.
That is why if you know you do not have this marketing skill, you can partner with someone who is a good marketer.
3. Trust: This is a major currency the business world. When people can take you for your word then unlimited doors open. you can have access to goods/services with little or no money once the owners can be rest assured that you will fulfill your end of the bargain by paying them back as at when due.
So in order to attract investors you need be trustworthy. Remember that word of mouth is the best form of advert. Being dishonest is not good for business.
4. Financial records: The financial records must be intact. There must be a record of your expenses, income, profit etc.
Potential investors must see that you have an healthy cash flow and you mean business otherwise we won't take you seriously. So that by taking a look at your financial records, you
can even know where you stand financially.
5. Business name
Ensure your business name is registered so that you can be identified as be seen as a legal entity.
6. Taxes:
The good news here is that Agribusiness in Nigeria is tax free. However, those in the Agriprocessing sector enjoy 100 percent tax break for the first 5 years. Ensure you pay your taxes if you fall into this category. This is because a backlog of taxes can be a big turn off to major investors.
7. Systemisation
This is about building your agribusiness so that can run on its own. Having an Agribusiness that revolves around you alone can be a source of concern to investors that want to invest substantially in your business.
So at some point in time when your Agribusiness venture begins to to blossom, it is advisable to start engaging and training staffs
8. Innovation
Innovation is simply looking for ways or means of serving your customers better and remaining relevant in the market. Competition is what keeps the creativity in the business world at its best.
As another Agribusiness owner, you must constantly innovate and think of new ways of remaining ahead of competition. Potential agribusiness investors also watches for businesses that can outlive competition.
9. Networking
Social capital is the new gold. As an agribusiness owner who wants to take his business to the next level,you need to network other people in your industry both offline and online.
Your potential investors can just be one more person away from your formal network.So you have to keep showing up related important events. And remember
to keep giving value so that you can actually connect which people beyond the complementary cards.
10. Business mindset
Having a business mindset will enable you help your potential investors see what they stand to benefit by investing in your business.
Even if they are your relatives, they should still be able to benefit from their investment. Remember that nobody owes you anything. So discard any entitlement mindset that can hinder your agribusiness growth.
Have a business proposal that clearly states the ROI (return on investment ). Let everything be clearly spelt out in numbers as investors think and speak in numbers.
11. Value mindset.
In attracting investors and negotiating the terms and conditions of the investment, you should act from a mindset that you are bringing value to the table. So that at the end of the day, the negotiation process will be a win/win situation.
11. God Factor
The God factor in business can never be overestimated since it is God that makes things possible. This is why you must never neglect the spiritual aspect in business. You have to keep praying to be at the right place at the right time.
Please feel free to share other points not covered here thatcan help attract investors in the comment section.
Success!
Jumoke Ayeni
Agricultural Economist |Blogger
The truth is, often times, your first set of potential Agribusiness investors are already in your existing network (family,friends, relatives, neigbours etc).
Some of your friends may not have the cash you need but may already have the item you want to buy with the cash or may have an important contact that can be helpful.
However, they may not be willing to go the extra mile for you if they believe you do not have the right approach to your business. As an Agribusiness owner, you always pitching your business to potential investors consciously or subconsciously.
How to attract Investors
1.Have a track record of success:
Forget about looking for investors. Yes, you are right! You read it correctly. It is not a mistake. Rather channel all your energy and resources into your agribusiness to make it successful.
It is actually easier to sell your success story about what you have done (even if it is on a small scale) than to sell a promising idea with great potentials.
It shows your ability to manage resources and deliver results. When people start seeing your results and commitment they will naturally gravitate towards you to help. The fact is that investors invest in people and not just business.
 |
| Cattle Farming |
2. Sell yourself:
You must be able to convince and persuade people to buy into you first as a business owner before they can buy into your business. People must be able to see the entrapreneurial drive before they can entrust you trust with their money.
Even when it comes to multinational companies, investors and shareholders only invest when they believe in the leadership of the company. This is why some companies experience either a rise or fall in share value whenever there is a change in the management of the company.
That is why if you know you do not have this marketing skill, you can partner with someone who is a good marketer.
3. Trust: This is a major currency the business world. When people can take you for your word then unlimited doors open. you can have access to goods/services with little or no money once the owners can be rest assured that you will fulfill your end of the bargain by paying them back as at when due.
 |
| Fruit Juice Production |
So in order to attract investors you need be trustworthy. Remember that word of mouth is the best form of advert. Being dishonest is not good for business.
4. Financial records: The financial records must be intact. There must be a record of your expenses, income, profit etc.
Potential investors must see that you have an healthy cash flow and you mean business otherwise we won't take you seriously. So that by taking a look at your financial records, you
can even know where you stand financially.
5. Business name
Ensure your business name is registered so that you can be identified as be seen as a legal entity.
6. Taxes:
The good news here is that Agribusiness in Nigeria is tax free. However, those in the Agriprocessing sector enjoy 100 percent tax break for the first 5 years. Ensure you pay your taxes if you fall into this category. This is because a backlog of taxes can be a big turn off to major investors.
 |
| Agri-processing |
7. Systemisation
This is about building your agribusiness so that can run on its own. Having an Agribusiness that revolves around you alone can be a source of concern to investors that want to invest substantially in your business.
So at some point in time when your Agribusiness venture begins to to blossom, it is advisable to start engaging and training staffs
8. Innovation
Innovation is simply looking for ways or means of serving your customers better and remaining relevant in the market. Competition is what keeps the creativity in the business world at its best.
As another Agribusiness owner, you must constantly innovate and think of new ways of remaining ahead of competition. Potential agribusiness investors also watches for businesses that can outlive competition.
9. Networking
Social capital is the new gold. As an agribusiness owner who wants to take his business to the next level,you need to network other people in your industry both offline and online.
Your potential investors can just be one more person away from your formal network.So you have to keep showing up related important events. And remember
to keep giving value so that you can actually connect which people beyond the complementary cards.
10. Business mindset
Having a business mindset will enable you help your potential investors see what they stand to benefit by investing in your business.
Even if they are your relatives, they should still be able to benefit from their investment. Remember that nobody owes you anything. So discard any entitlement mindset that can hinder your agribusiness growth.
Have a business proposal that clearly states the ROI (return on investment ). Let everything be clearly spelt out in numbers as investors think and speak in numbers.
11. Value mindset.
In attracting investors and negotiating the terms and conditions of the investment, you should act from a mindset that you are bringing value to the table. So that at the end of the day, the negotiation process will be a win/win situation.
11. God Factor
The God factor in business can never be overestimated since it is God that makes things possible. This is why you must never neglect the spiritual aspect in business. You have to keep praying to be at the right place at the right time.
Please feel free to share other points not covered here thatcan help attract investors in the comment section.
Success!
Jumoke Ayeni
Agricultural Economist |Blogger
Comments
Post a Comment