In the coming post covid-19 days, there is going be an increase in the need for raising capital as most reserved funds are already depleting very fast. However, one of the easiest way and organic means to access funds will be to through agro-partnership
Now, most times when we hear of the word partnership or collaborations, we think of big brands, cooperate bodies, international organisations, countries coming together with billions of dollars to do big things. Yes, that's correct but that's just an angle to it.
Today, we will look at collaboration from another angle, the micro angle. For instance, Mr Tunji, who happens to be a friend of mine, is a small poultry farmer who previously had about 50 birds(broilers and layers) wanted to scale up to a thousand birds. Having pulled all his resources together, he discovered that he could only afford to buy and maintain 250 birds.
So, he decided to speak to his friends and family in the 9am to 5pm world to join him in purchase and growing of the birds in their 100s, 50s, 30s, 20s and even 10s so that they will have a total of thousand birds. With the mindset of targeting December sales.
Most of them responded positively having seen his past level of success and the projecteReturn Of. Today, he has a "bigger" and more vibrant poultry farm by leveraging on other people's money (OPM)💰. This is an example of partnership/ collaboration in agriculture ( agropartnership).
Although, he has to share the profit with his partners, he also gets to share the costs with them.
But most importantly, he gets to gain more experience being the man on ground thereby increasing his technical capacity in handling higher number of birds. And since he has to carry his partners along, it increases his accountability as the financial records must be intact with everything spelt out. If he is able to pull this through, he will definitely attract bigger capital.
Then, he can deceide to put his books together and approach a microfinance bank or commercial bank for credit if he chooses to. Truth is that he stands a better chance than another farmer with fewer birds and no previous history of leveraging and maximising other people's money (OPM) .
This can be replicated in any business.
Steps to creating Partnership opportunities in your business.
1. Start small first on your own, be diligent and make it work. Remember people are watching.
2. Ensure that you have figured out the marketing aspect to a reasonable point so that you will not be under a lot of stress accommodate
3. Keep your financial books intact. Track your cost and expenses, income and profit.
4. Leverage on the first two above to pull resources together from your circle of friends in order to scale up. At this stage, you must make them see their money as investment and not a gift or aid to your business as nobody owes you anything.
5.Put in your best to make the venture profitability.
6. Be honest and transparent with your partners and do nothing to fear 3 be out to extort them. Remember that word of mouth is the best form of advert. It can make or mar your business.
7. You can then use the success of the partnership to seek bigger sponsorships, partnership or formal credit.
I wish you SUCCESS!!