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One of the most common challenge for any start-up, if not an established
Agribusiness, is finance.
Finance enables one to acquire business assets and expand production scale. A
farmer can simply source for funds to buy more livestock or tools.There are many vast financial options available especially now where there is increasing globalization .They include:
Friends and family - This is one of the most traditional methods of raising funds. This is because this are people you know and can give you cash without much fuss.
Personal savings - If you have good money spending habits it is one option to look into. It is said one plus one equals two. You have control over what you set aside each month. One thing though is that it takes time and much discipline.
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Bank loans. - You may opt to take a bank loan from either a bank, Sacco or a micro-finance. There are many bank products specially tailored for
Agribusinesses to meet specific needs as Agriculture is characterized by unique features. You can visit your local financial institution and discuss the various options you have in terms of how much money they can lend you, loan guarantee and interest rates.
Crowd funding- This a relatively new way of sourcing money in Kenya. There are various crowd funding agencies worldwide such as
Kickstarter which can be accessed online . In Kenya you can access this option through
M-Changa. It is a easy method to get funds from a large crowd of people( basically strangers) all around the world hence the name crowd funding.That's so cool, right? That's the power of globalization, money changes hands among different cultures across the seas .
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Proposal writing. If you have a pretty good business plan or idea at hand this may be your thing. You just jot down the idea in a business proposal then present it to prospective business partners.
Angel investors or venture capitalists. Investors are ready to invest in a good business idea. This can be through a competition such as Kenya's big ideas where the winners get cash for investment. Also approaching the investors and pitching your idea can also work. Confidence is key here.
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Youth groups / conglomerate. You may decide to join forces with people who have the same passion as you. A pool of resources is formed from which joint ventures are pursued.
“DON’T THINK WHAT’S THE CHEAPEST WAY TO DO IT OR WHAT’S THE FASTEST WAY TO DO IT. THINK WHAT’S THE MOST AMAZING WAY TO DO IT”.- Richard Branson
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