BUSINESS PARTNERSHIP IN AGRICULTURE – A USEFUL TOOL IN AGRO INVESTMENT
In agriculture, enthusiasm and capital will not fetch you all you need for a successful agribusiness.
So many people are fooled by the statistics of possible returns from agro investments without remembering that it takes efforts and knowledge to achieve such feats.
I’ve heard how people ventured into agro-business just to lose all their hard earned capital.
They focused on the wrong thing and probably didn’t have the necessary support they needed.
Human life is interdependent. Have you ever come across people with excellent agriculture ideas and expertise but no capital to put those ideas to work?
Ever wondered why some people have capital but no business idea?
Another group own lands that are lying fallow –possibly they have no use for the land in mind. Well, no man has it all.
A business partnership is one tool that is indispensable in agro-enterprises.
Table of Contents
- Business Partnership in Agriculture is Different From a Consultation.
- How to Get Your Agro Business Partner
Business Partnership in Agriculture is Different From a Consultation.
You consult experts before venturing into any enterprise and as you progress; but partnership involves pooling resources and strength together for maximum productivity.
Agro-business partnership like every other partnership is not all about competition, rather it involves complementing each other.
That is why you have to look out for someone that is ready to do business when choosing a partner.
Let me share wisdom from Dr. Strive Masiyiwa “many people think that succeeding in business is about having a good idea, and then raising capital. If you do not know how to forge meaningful, long-term partnerships, based on mutual trust, you will not make it.”
How to Get Your Agro Business Partner
Having understood the importance of partnership to agro-business, let’s see some useful tips in getting a partner:
1. Get a partner based on mutual interest:
Don’t just choose anyone to become your partner. Your partner should share the same goals and aspiration as you.
Choose a partner who is passionate about agriculture and not someone who would join you just for the sake of profit sharing.
Being passionate about agriculture alone is not even enough. Your partner must share the same interest in the exact agribusiness you are about to venture into. Whether it is snail farming, piggery, maize farming, poultry farming, plantain plantation, cassava farming or whatever, your partner must be interested in it.
When you have a partner that shares your passion or have a similar vision with you, it will be a great motivation towards success.
2. Have a form of a written agreement signed by both parties and witnesses
I hope you don’t start a partnership with the intention that your agribusiness partnership will be a joyful ride all through.
Even though I wish you well in your business, it’s too risky to take chances.
Carefully spell out the terms and conditions of this partnership in a memorandum of understanding. Make sure each party understands their role in achieving the goal of the partnership before signing.
If your business is such that requires a large amount of money as an initial contribution from both parties, I advise you look for an attorney and sign a funding agreement.
3. Get a partner you can trust
You may say, how possible can this be? Well, getting a partner you can trust is one of the major agribusiness decision you can make.
Get recommendations for your partner.
You should look out for someone that will respect your agreement. Otherwise, you will have a lot of quarrels to settle
4. Each partner must be responsible for something
Each partner in the agribusiness partnership must be responsible for a particular task or group of tasks.
A partnership is not all about pooling resources together – all fingers are not equal – but each person should according to his ability contribute meaningfully to the success of the enterprise.
The individual task for each partner must be discussed and stated in the partnership to prevent resentment.
5. Do not have a stranger as a partner
Don’t jump into a business partnership with someone you have little or no information about his background.
Gather as much information as possible about your partner before venturing into partnership with the person.
This will save you a whole lot of surprises that may arise in the long run.
This agro investment series has been really enlightening
Please stay tuned as we round up on the Agro Investment Series.
If you have any questions or contributions, please post them in the comment.
Please know that I appreciate your comments a lot, so keep them coming.
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Written by: Mgbeonyere Blessing