Success Factors for Creating a Successful Value-added Agricultural Business

1
Success Factors for Creating a Successful
Value-added Agricultural Business
2
Success Factors

• Leadership
• Committee Members
• Project
• Investment
• Process

3
Leadership

• Find a leader(s) (Champion)
• Your leader should be a farmer
• The leader needs to convey a vision of the project

4
Leadership

• Leaders must be honest, steady and trusted by the
  committee members
• Leaders should be rewarded for good work.

5
Committee Members

• Members must be involved and feel ownership of
  the project
• Members must focus on learning
• Member have to discover information not just be
  told

6
Committee Members

• More than farmers need to be involved
  (agribusiness, extension, etc.)
• Members need to think outside of the box.
• Members need to put money on the table.

7
Project

• When examining a potential project, focus first
  on why it will work, then on why it wont work.
• Watch out for group-think
• Answer the question, Why will this project be
  successful.

8
Project

• Use advisors and consultants
• Consider partnering with other value-added groups
  and industry players
• Focus on building a business not raising
  commodity prices or creating jobs

9
Project

• Understand the industry do industry scanning
• Build business in response to market needs
• The feasibility study (should we do it) leads to
  the business plan (how do we do it)

10
Project

• Legal advise get it before you need it
  (prevention vs. treatment)
• You need Directors and Officers Insurance

11
Investment

• Dont underestimate capital needs
• Dont short yourself on equity
• Dont be ashamed to ask for money.

12
Investment

• Be open with the investor/lender
• Farmer investors where his/her heart is
  his/her money will be

13
Process

• Having a vision is critical but execution of
  the vision is also critical
• Make a commitment to get to the finish line
• Make action plans and timelines try to achieve
  them

14
Process

• Have regular meeting with prepared agendas and
  good sets of minutes to record decisions and
  progress.
• Keep your eye on the prize (dont let personality
  conflicts and other distractions get in your way)

15
Process

• The road is long dont give up