Agribusiness is much more than just farming the land or rearing animals. Many agribusinesses buy or sell their products directly to farmers, but other types of agribusinesses provide services that keep farmers in business.
The agricultural business section in Nigeria is relatively untapped, with lots of vacuum being filled by importation. However, it is estimated to be worth $85 billion. Therefore, if you can meet local demand for these goods, then you would earn a lot in the sector.
You can delve into any type of agribusiness, and research your market so you can have a profitable agribusiness start-up.
The Different Types Of Agricultural Businesses
Farming – Growing crops, and raising livestock for profit, such as cattle, goats, pigs, and other produce on a large commercial scale.
Horticulture – Growing fruits or vegetables.
Agricultural Services – These include crop consulting, agricultural research, livestock breeding, and agricultural extension services.
Seed Production – Growing plants for seed or for use in food products.
Pest Management Control – Controlling pests that damage crops or livestock.
Agroforestry – Growing trees or bushes as a part of a farm or ranch.
Crop Drying – Drying harvested crops in preparation for storage or marketing.
Starting an Agricultural Business from Scratch
Depending on the type of agricultural business you want to start, the first thing you need to do is to decide on a business model.
This will help you determine the type of business you want to start, the products or services you will provide, where you’re going to offer them, and how you’re going to be different from the competition.
There are many ways to start an agricultural business, but here are a few suggestions you can follow to get started:
Determine what products or services you are going to sell. Create a business plan that allows you to project the profits you intend to make over a number of years. Include in this plan any expenses from supplies, licenses, insurance and other operating costs. Figure in the costs of purchasing or leasing land for your agribusiness start-up as well as any buildings you need. Also include the costs of any equipment necessary in the operation of your farm business. From these expenses, determine how much money you might need to borrow to get your business started.
Seek financing from a bank or other lending institution that offers agribusiness loans. Use the information from your business plan to help you get the loan. If you have the capital to start the business without a bank loan, omit this step.
Acquire any business licenses you need to operate in your state from the Secretary of State’s office. Register the name of your business and apply for a tax number from the same office. If you plan to operate the business as a limited liability company or corporation, fill out the paperwork at the Secretary of State’s office as well. Fill out applications to operate your business inside city limits with the city clerk’s office.
Apply for any special licenses you may need at the state and federal level. For example, you may need a chemical applicator’s license if your business sprays weeds with herbicides. You might need special permits for disposing of farm wastes from the state’s department of natural resources.
Set up your business on the land you purchased or leased. Build or adapt existing buildings to suit the purposes of your business. Purchase the materials you plan to sell to your customers and stock shelves. Buy enough property and liability insurance to cover your assets.
Develop a marketing plan for your agribusiness start-up that clearly identifies you and your business with a brand or logo. Identify your market and ways you can reach your customers. Think long term as well as short term as you plan marketing strategies. Look for ways to advertise your brand that bring you the biggest return on your marketing dollar. Place ads in newspapers, radio and television, but also hang flyers on bulletin boards in places where potential customers do business. Hire someone to create a website for your agribusiness.
Hire employees. While no special training is necessary for most agribusiness employees, exceptions may exist. Hire people capable of carrying heavy loads if you are selling products sold in 50-lb. bags. Choose employees capable of passing tests necessary to obtain any special operator licensing, such as to operate a field sprayer.
Find a problem in the agriculture sector you can solve. This can be related to anything from government regulations to lack of access to certain equipment or supplies.
Join an agricultural organization in your community. Joining your local agricultural association can help you find partners and mentors in your area who can guide you through the process.
Start a side hustle while you get your business off the ground. This can help you make money while you’re still trying to figure out your business plan and start your company.
