How to Start a Smallholder Farm

Over 70% of farms in Africa are smallholder farms. They collectively contribute huge amount of agricultural produce. Despite a host of challenges with proper farming techniques and management they can succeed.

Production is only a piece of the puzzle because they need proper marketing. It is important to judiciously manage natural resources. Conserving the soils natural nutrients and waste water is very important.

Challenges of Smallholder Farms

The challenges of smallholder farms are many. They lack proper funding, overused fields, poor seed stock and illiteracy.

Smallholder farms employ labor intensive technique, poor skill acquisition. Another major challenge is lack of innovation. The farmers are generally stuck in their old ways of doing things.

•         Lack proper funding

•         Overused fields

•         Poor seed stock

•         Illiteracy

•         Labor intensive technique

•         Poor skill acquisition

•         Lack of innovation, motivation

•         Stuck in their old ways of doing things

Government Intervention

The majority of smallholder farms are run by very poor individuals. They do not have enough capital to grow or produce large scale. African governments are not doing enough to encourage or boost smallholder farms.

Ways government can improve their lot is through public private partnership. They should also reduce the complexity in the agricultural sector.

Skill Acquisition

Smallholder farmers need to acquire the appropriate skill. To earn considerable income, sustainability they need hands on training. There are many agricultural, research institutions willing to pass-on knowledge.

They also offer improved seeds, organic fertilizer and modern tools. The farmer could seek an established mentor, read books, and attend seminars or workshops.

•         Hands on training

•         Improved seeds

•         Organic fertilizer

•         Modern tools

•         Seek an established mentor

•         Read books

•         Attend seminars

•         Workshops

Farm Management

The farmers need a sound organizational, management and financial skills. The farmer needs to maintain financial records, save judiciously. To succeed they also need entrepreneurial and marketing skill.
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Building Capacity

Experts believe capacity building starts with rural communities working together. This includes joining a group, association or farmers union.

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How to Become a Successful Farmer

Having a fair knowledge of the product is the first step to becoming a successful farmer. A crop farmer has a huge variety of choices. They can grow rice, beans, corn, wheat, cotton, tomatoes and citrus fruits.

Crop farmers should understand weather conditions, soil pH, water level and type of soil. Other knowledge include specie of crop, growth and harvest period. More specialized knowledge includes spraying techniques, pruning, fertilizing and grafting.
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Things to Consider as a Livestock Farmer

Livestock farmers have different options in animal husbandry. The farmers need a deep understanding of feed type, body to fat ratio and medication for the livestock.

Other things to consider are common diseases, habitat and breed. It is important to develop basic business knowledge, accounting and record keeping. The farmer should study market trends, market fluctuations, demand and supply.

•         Deep understanding of feed type

•         Body to fat ratio

•         Medication for the livestock

•         Understand common diseases

•         Habitat

•         Breed

•         Develop basic business knowledge

•         Accounting

•         Record keeping

•         Study market trends

•         Understand market fluctuations

•         Demand and supply

Things to Consider as a Crop Farmer

Things to consider as a crop farmer are crop selection, crop yield, growth-harvest period. You need to know the type of climate, weather conditions, winter, and annual rainfall.

Others are soil type, waterlogged or well-grained soil and nutrient content. More are natural hazards like hailstorms, snow, flood or drought.

Intensive farming requires huge land, mechanized equipment and regular water supply. The farm land should be accessible with good roads, electricity. It is also very important to study the host community before establishing the business.

•         Crop selection

•         Crop yield

•         Growth-harvest period

•         Type of climate

•         Weather conditions

•         Annual rainfall

•         Soil type

•         Waterlogged or well-grained soil

•         Soil nutrient content

•         Natural hazards

•         Size of land

•         Mechanized equipment

•         Regular water supply

•         Accessible roads

•         Electricity

•         Study the host community

Farm Selection

The type of farming will determine the geographical location and type of farm. Things to consider are location, kind of farm, lease or purchase. Crop farmers need highly productive fertile land for the crops to thrive.

While livestock farmers need a secure land with perimeter fence, pens and cages. A farmer could consider renting if the farm already has the required facility. Buying a farm land involves long term investment in the business.

Make sure the region is familiar to avoid unwanted surprises. If there are successful crop farms in your area of selection then you are in good company. This is because the soil type and climates supports that particular crop.

If you are into poultry farming choose an area with successful poultry farms. Such areas have good support system, offers networking.

Gain Experience

It is important to develop the perquisite experience and hire knowledgeable professionals. To gain experience start as a farm hand and slowly learn the business.

Other ways are through tutorials, seminars or trade institutions. To succeed the farmer should have the necessary skills to manage his own farm.

•         Develop the perquisite experience

•         Hire knowledgeable professionals

•         Start as a farm hand

•         Use tutorials

•         Attend seminars or trade institutions

Start Cautiously

As opposed to owning a farm outright you can start by renting a farm. This way you will gain enough experience without tying down huge funds. The experience will also determine your level of interest and commitment to the business.

If you wish to buy focus more on history of the land than brokers looking to close a deal. Leverage on farming communities, groups, organizations and agricultural agents for advice.

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How to Become a Renowned Food Company Distributor

An entrepreneur can leverage on a renowned food company as a distributor and make good living. The food company could be a Public Limited Company, Limited Liability Company or Conglomerate.

It is important to choose a leading player in the FMCG sector in your country. Many leading companies sometimes publicize opening for distributors as part of their growth strategy

Individual Distributor Profile

The individual distributor should be a self-driven entrepreneur with strong passion for growth. The person needs to be target oriented with ability to cover designated territories in a specified geographical location.

They should be willing to invest in sound organizational structure to accommodate growing requirements for distributors in fast moving consumer goods environment.

They must have integrity, commitment and meet conditions prescribed in the company’s distribution agreement.

•         Self-driven entrepreneur

•         Strong passion for growth

•         Target oriented

•         Ability to cover designated territories

•         Willing to invest in sound organizational structure

•         Accommodate growing requirements for distributors

•         Must have integrity, commitment and meet conditions

Financial and Net worth

The distribution company must meet the minimum capital prescribed by the company. This could be high depending on the geographical reach or potential of the territory.

The distributor must provide evidence of financial net worth including a bank guarantee that supports the ability to trade with the food company.

They must have the ability to provide infrastructure and personnel to ensure effective coverage of assigned territory.

•         Must meet the minimum capital prescribed by the company

•         Provide evidence of financial net worth

•         Bank guarantee that supports the ability to trade with the company.

•         Ability to provide infrastructure and personnel
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Personnel and Infrastructure

The personnel and infrastructure are sales personnel, back office staff and distribution manager. Infrastructure are generator, computer system and warehouse. Others are vehicles, office space and sales outlet.

•         Back office staff

•         Distribution manager

•         Sales personnel

Infrastructure

•         Generator

•         Computer system

•         Warehouse

•         Vehicles

•         Office space

•         Sales outlet

Application Requirements

The application requirements for distributorship are track record of distribution business and sales. Others are evidence of distribution infrastructure such as office vehicle and warehouse.

The distributor needs to tender 6 months bank statement, bank reference letter2. More include application letter on letterhead of registered business. Finally a add copy of certificate of incorporation and registration of business name.

•         Track record of distribution business and sales

•         Evidence of distribution infrastructure(Vehicles, Warehouse)

•         Tender 6 months bank statement

•         Bank reference letter 2

•         Application letter on letterhead of registered business

•         Copy of certificate of incorporation and registration of business name

How to Apply

Interested candidates send application via courier to the company address specified or an email address given by the company.

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How to Apply for Unsecured Business Loan

There are three types of loans secured, partial secured and unsecured. Secured loans require collateral, partial some security while unsecured without security.

Unsecured business loans need no collateral such as lines of credit or credit cards. Regular bank loans require extensive documentation while unsecured loans are more flexible.

They are much easier to get because they don’t require company or personal assets. The downside is that interest rates are higher than other forms of credit.

Considerations

The borrow needs to determine the type of loan they want. The loan could be partial, secured or unsecured. Other considerations are collateral, down payment and assets.
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Conventional Mortgage Loan

A conventional mortgage loan attracts higher down payment expected upfront. The loans equity builds rapidly because of higher down payment. Some lenders request down payment of 20 to 25%.

However private mortgage insurance is not mandatory in all cases. In the case of a company or individual not meeting the down payment then mortgage insurance is needed.

The lender will authenticate that the down payment is owned by the borrower. The source of the down payment must be money saved by the borrower.

Creditworthiness

Lenders are willing to negotiate terms and conditions of the loan. However there are standard guidelines to every loan. Some banks require a non-refundable fee and may include stiff penalties if not repaid on time.

The creditworthiness of the borrower is determined by the lender. The qualification, debt to income ratio and amount of money to meet obligation are also considered by the lender.

They also consider the amount of money needed to service the debt, monthly gross income earned by borrower. The downside is bankruptcy or in extreme cases home foreclosure.

Disadvantage of Conventional Mortgage

Low credit score borrowers face loan term fees and higher interest rates. The interest rate increases if closing cost of loan is included.

Conventional loans sometimes come with adjustable rate loans. This invariable cause’s fluctuation in monthly payments.

•         Loan term fees

•         Higher interest rates

•         Adjustable rate loans

•         Fluctuation in monthly payments

Unsecured Business Loans

Unsecured business loans does not require collateral. However the borrow must meet certain conditions such as income and credit rating.

How to Obtain Unsecured Business Loan

To obtain an unsecured loan the applicant needs to meet the banks representatives. They will determine your eligibility, creditworthiness. The main advantage of unsecured loans is the lack of collateral.

To apply put together bank account information and complete an application form. Provide contact information, social security number and bank information.

•         Meet the banks representatives

•         Put together bank account information

•         Complete an application form

•         Provide contact information

•         Social security number

•         Bank information

Disadvantages of Unsecured Business Loans

The main disadvantage is the high interest rate. This is because of the higher risk factor for lenders. Businesses tend to pay more over a period than secured loans.

The high interest also causes higher individual loan payments. It is harder to qualify for an unsecured loan than a secured one.

Like regular loans any default will affect your business credit rating. Although the loan is unsecured a lender might go to court for redress.

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Things to Know Before Starting a Logistic Company.

There are a few things to know before starting a logistics company. The core business is storage and delivery of products. The company may specialize in ground transportation, import/export.

It is important to put in place a good freight transportation system. The transportation could include road, air, train or bike. This is to conduct and articulate air freight, shipping or other means of delivery.

Logistic business requires proper planning, patience and persistence. This specialized field include huge inventory shipment, security, planning and time management.

They coordinate warehousing, shipping and delivery of customer’s merchandise. Here are important steps to starting a logistic company.

Funding

The service you wish to render will determine the type of investment in the business. A 3PL service requires more funds than a basic freight management or brokerage firm.

It is important to prepare an investment plan and identify the services you wish to offer. Ways to attract funds are through partnership or bank loans. The type of licensing and permit depends on the countries laws that guide the business.
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Licensing

The type of licensing to run a logistic service vary by country or state. General licensing includes filling a tax form, business permit.

You need a business name, operational location and tax identification number. Register the business as a limited liability company. It is important to get a good insurance cover for the business.

Study the Competition

The logistic business is very competitive and there are many players. You need to study the competition and develops an effective business structure.

Develop a Business Plan

It is beneficial to develop a business plan. The plan is ideal for proper analysis of present and future goals of the company. The plan could be used to secure loans and open a line of credit to pay partners.

Open an Office

It is important to have a brick and mortar office. The office will coordinate the movement of packages. Other benefits include customer confidence, an address, warehousing for short time storage.

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Facts on Duck Farming

Ducks are a delicacy in many countries while others consume them in moderate quantity. The bird’s meat is not as popular as turkey, chicken or beef. In a country like Nigeria turkey meat is popular while unpopular in Ghana.

In Nigeria there is no empirical data on number of ducks farmed annually, marketing or consumption. This offers a challenge for entrepreneurs looking to invest in the industry. However the focus on organic, chemical free meat has increased the demand.

Modern living focuses on health consciousness and food safety. For centuries wild-ducks are game birds in aristocratic settings. But are now domesticated and farmed.

Although the interest in duck consumption has raising top poultry meat are chicken and turkey. Poultry meat now extends to quail, duck, ostrich and guinea fowl. Other types of poultry are waterfowl, geese and peafowl.

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Why Farm Duck

The meat is a delicacy and a good source of protein. The birds are hardy and not easily susceptible to diseases. It requires small investment, low feeding cost to run a farm. Infrastructure is basic, easy to establish and low cost.

•         Good source of protein

•         The birds are hardy

•         Diseases resistant

•         Requires small investment

•         Low feeding cost

•         Basic Infrastructure

•         Easy to establish

Types of Ducks

There are many species of ducks both wild and domesticated. Popular ones are Blue Swedish, Aylesbury. Others include Buff, Muscovy, and White Pekins.

•         Blue Swedish

•         Aylesbury

•         Buff

•         Muscovy

•         White Pekins

Uses

A farmer can introduce ducks to their free-range poultry farm. This is because they are good companions and natural pest control. They add manure to soil, good source of meat and feathers. The birds also attract premium price in the market.

•         Good companions

•         Natural pest control

•         Add manure to soil

•         Good source of meat and feathers

•         Attract premium price in the market

How to Start Duck Farming

In developing countries duck farming is almost nonexistence. This is because the meat was regarded as poor man’s food. Poultry farms focus primarily on chicken and turkey production.

To start duck farming you need land space and source of water supply. You can create an artificial pond and demarcate the land with fencing.

The amount of startup capital is small as opposed to chicken farming. Start with a foundation stock of 1 male and 3 females.

Habitat

Ducks are regarded as waterfowls and the best habitat are regions with high rainfall. They grow well in the tropics, cool and riverine areas.

Pen or Cage

Most farms operate the free range system. This system allows the birds to wander about the farmland. They grow well alongside domesticated chickens.

In many parts of Africa the birds are raised in traditional subsistence rearing system. Free-range birds are varsities, prolific and are capable of raising themselves with very little assistance.

Some farmers raise them in chicken cages or pens. However they need to provide adequate water for the bird.

•         Free-range

•         Traditional subsistence rearing system

•         Pen/cage system

Food

The birds can digest a variety of protein rich food, fiber and non-conventional feed-stuff. They are prolific scavengers, eat insects, worms, grains and seeds. The type of food they eat is low cost and easy to source in the local market.

•         Protein rich food

•         Fiber

•         Non-conventional feed-stuff

•         Prolific scavengers

•         They eat insects

•         Worms

•         Grains

•         Seeds

•         Grass

Eggs

The waterfowls lay about ninety to hundred eggs per year depending on species. They start laying at eighteen weeks. The reproductive cycle is in three phases, laying (fifteen days). They incubate for twenty eight to thirty days and brooding phase is sixty to sixty three days.

Marketing

Sell your produce to supermarkets, grocery stores, restaurants. Others are hotels, food outlets, frozen and live food vendors.

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How to Hire the Right Team Member

Hiring the right team member will improve profitability and growth of a company. Growth is linked to effective productivity and proper time management.

There are critical elements to look out for without compromising cooperate policy and growth. Concise decisions are central to properly analyzing the team member to get the best person for the position.

The Hiring Manger and Management Team

The company looking to hire needs impute of top managerial staff and a hiring manger in the employment process. A general rule is to hire highly qualified personnel that fit into the required job.

The hiring manager should have certain traits to spot talent and follow the company’s guidelines. The hiring manager should exhibit confidence, good risk assessment and fast decision making.

The company should have a well-structured recruitment process and the team can be involved in the interview.
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Traits of a Hire Manage

•         Ability to spot talent

•         Follow guidelines

•         Conduct background checks

•         Exhibit confidence

•         Good risk assessment skills

•         Fast decision maker

•         Follow well-structured recruitment process

Company Structure

Every company needs a structured recruitment process in place. The process should be flexible enough to accommodate current trends.

A typical structure includes interview process, post-interview and other criteria. There should be team flexibility and accelerated process to complete an interview loop in record time.

Making Quick Decisions

It is important for companies to make quick decisions based on candidates they see. Speed is of the essence to avoid losing a potential team player to the competition. Most candidates attend different interviews within a certain time period.

For effective management of speed the company needs a centralized process. This will enable faster decision making and putting offer letter in qualified candidates hand in a matter of a week.

The company can prepare an offer letter and rescind pending background checks. This condition should be stated clearly for the candidate to know the situation.

Quick decisions and speed are essential if the company wants to hire qualified candidates.
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Making the Offer

The goal of recruitment is to achieve customer success. The team member should be hired on their ability to achieve customer success. This involves serving the customer better for growth of the company.

The hire manger should be empower to hire a person on the spot. However the proper procedure follow the C-suite process that takes longer. It is important to finish the interview loop and present an offer letter within one week. This is pending background checks on the candidate.

Recruit Regularly

Companies that go to long before hiring new staff are missing out on new trends. Hiring is very important if you want to discover new talent. It is imperative to never stop searching for team players with talent to inject new strategies into the company.

Bad Hire

Despite checks and balances a company might make a bad hire. This is inevitable however instituting processes to resolve the situation quickly is the way to go.

A bad hire might be unprofessional, arrogant and interested only in money. To resolve the situation the company should make quick decisions concerning the individual.

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How Does Fixed Deposits Work

Fixed deposits are considered one of the safest investment portfolios offered by banks. They pay higher than money market or savings account without the attendant risks. To invest in such a secure portfolio the company or individual will have to deposit the money for an agreed duration.

The banks are able to pay high premium because they have time specific access to the funds and are able to use them unhindered. It is possible to get the funds un-locked early however this will attract sever penalties and charges.

How Does Fixed Deposits Work

Fixed deposit are time based deposits that attract higher interest than regular saving deposits. In return for higher interests the depositor locks the funds in the bank for a specified period agreed by both parties. The party promises to keep the funds in the bank for a specified period. Fixed deposit tenors usually run from six months, eighteen months, one year, two years or five years. The longer the duration the higher the interest rate it attracts.

•         Time based

•         Attract higher interest

•         Funds are locked

Why Consider Fixed Deposit

The main reason to consider fixed deposits is higher rates. The bank agrees to pay higher rates due to the company or individuals promise to keep the funds for a specified period.

As stated earlier the interest is higher than regular saving deposit accounts. Another advantage is higher annual percentage yield on the funds deposited. Banks can offer this higher rates because they use the funds long term in other investments or long term loans.

•         Higher interest rates

•         Higher annual percentage yield
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Term Option

Fixed deposits attract term options on how long the funds are kept. The depositor cannot withdraw the funds on short notice and is encourage to run the full term.

The time period the funds are kept is referred to as term. Common term are six months, twelve months, eighteen months and sixty months.

Long Term

The longer the term the better prospects for interest. Longer terms generally attract higher interest than shorter term. Although longer term are not entirely better the terms and conditions should be properly understood.

Maturity Date

All fixed deposits have a maturity date when the investment is credited to the investor. At the end of the fixed deposit term the deposit is said to mature. The bank notifies the depositor as the fixed deposit term is about to expire.

The bank provides several options for the depositor. The depositor could consider the options or opt out of the fixed deposit. If the investor decides to do nothing the bank will automatically re-invest the said amount in another term similar to initial term.

If the fixed deposit was for one year the bank will re-activate another one year term on the deposit. The problem with this is the amount of interest may vary from previous agreement.

The interest could mark-up or down based on the banks portfolio. There is no guarantee that the same rate offered by the bank stands. It is important to let your bank know your intentions before the term ends.
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Things to Consider at End of Fixed Deposit

The fixed deposit owner has a few options at end of term. The company or individual could re-invest in another fixed deposit or withdraw the money into a savings account. They can consider a shorter or longer term or re-invest.

•         Re-invest funds

•         Withdraw

•         Consider shorter deposits

How to use Fixed Deposit

To use a fixed deposit the person needs to first contact the bank. There are two options online banks or brick and mortar banks.

You need to call their customer service or visit the bank branch. Make sure you conduct due diligence and investigate the bank before depositing your money.

Things to Ask

Ask the bank about different types of fixed deposit. Find out about early withdrawals, penalties and alternative fixed deposit products. Find the one that fits your needs with more features and flexibility.

•         Different types of fixed deposits

•         Penalty on early withdrawal

•         Alternative fixed deposits

•         flexibility

Strategies of using Fixed Deposits

Long term fixed deposits seem more attractive because of high interest rate. However they attract huge penalties if the deposit does not run the full term. Make sure you determine the right fixed deposit before investing.

Long term fixed deposit locks your funds for extended periods without access to the depositor. If you are ready to lock your funds for such extended period then long term is your best bet.

Sometimes an individual could buy a fixed deposit when the interest are low and is stock with low paying fixed deposit. A good strategy is to use short term deposits and re-invest when interest rates increase. It is important to use fixed deposits that offer flexibility.

Another technique is the ladder system to increase and optimize fixed deposit. An investor could take different fixed deposits with different terms to guarantee regular money at internals.

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How State Spend on Investment Promotion

The governor of a state should disclose plans by his administration to invest a specified amount in investment promotion. This is done as a way to encourage foreign investors to the state or county.
The head of government such as a governor could present a budget proposal to the house of assembly for consideration. The main aim of the investment proposal is to enhance efforts to boost the economy of the state.
This should be in line with the sates effort at expanding the economic base, based on the proposed amount they intend spending on investment promotion. The hope is to drive positive investment initiatives to the state.
The state should provide guarantee from investment in the private sector willing to do business in the state. The state should match funding for projects and provide a conducive environment for investors.
The state can focus on big ticket projects such as modular refinery, parks and economic enhancement projects. This will guarantee foreign companies investing in the state.
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State Investment Promotion Initiatives

• State should disclose plans by his administration to invest a specified amount in investment promotion
• A way to encourage foreign investors to the state or county.
• Present a budget proposal to the house of assembly for consideration
• Investment proposal is to boost the economy of the state.
• States effort at expanding the economic base
• Drive positive investment initiatives to the state.
• The state should provide guarantee from investment in the private sector
• The state should match funding for projects
• Provide a conducive environment for investors
• The state can focus on big ticket projects
• Guarantee foreign companies investing in the state

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