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5 Costly Mistakes You Should Avoid When Going Into Agribusiness

Sunday, 4 November 2018
5 Costly Mistakes You Should Avoid When Going Into Agribusiness
Agribusiness is now a goldmine as more investors and non-governmental are becoming interested in it. It has the capability of saving a nation's economy from crashing when other sources of revenue fail.
There are so many agribusinesses that are capable of making you a millionaire with little risks of failure unlike other types of businesses. Irrespective of the fact that agribusinesses involve lesser risks, anyone that wants to embark on it also needs to be cautious of some mistakes to avoid.
In this article we'll be sharing 5 mistakes any potential agribusiness man or lady should avoid.

5 Mistake You Should Avoid When Going Into Agribusiness In Nigeria

Just like every business, in agribusiness, some certain mistakes should be avoided by any business person that wants to enjoy the maximum profits from his investments.
No matter how awesome your agribusiness idea is there are still potentials of it failing if the right steps are not taken and mistakes avoided.
See these 5 mistakes to avoid as a potential agribusiness person:

- Avoid seeing yourself as a mere farmer

There is a wide difference between the word 'farmer' and 'agribusiness' and the later is the greater. The world has graduated from the stage of 'mere farming' to an advanced and mechanised farming stage or better still, agribusiness.
As someone interested in agribusiness,you should take the job as a business and not as a mere cultivation of plants or rearing of animals and you'll see the biz soaring high. A mere cassava farmer won't think of better ways to package his garri before pushing it into the market for sales. This also applies to other crops and even the livestock.
In business, any and every interested fellow can produce a particular product but it takes wisdom to push the product to the consumers.

- Producing without having buyers

Many people just hear of an interesting business idea and rush into it without thinking of their target audience or customers. Avoid venturing into a business unless you're sure of the target market and how profitable it'll be.
Also, be conscious of the factor that business success varies with location and what favours in the Northern Nigeria might be a different story in the Eastern. If you'd be venturing into cassava farming, please check out these 7 top cassava buying companies in Nigeria.

- Not doing large scale and mechanised farming

Upgrading from the status of a mere farmer to an agribusiness man or woman also involves changing the farming tools. Our fore fathers used hoes, cutlasses and other crude materials and the results were not impressive. Most of them cultivated just enough food to feed their families but agribusiness involves cultivating more than enough.
You should be focused on cultivating crops that would yield you impressive profits at the end of every farming cycle.

- Not doing enough market research or avoiding it entirely

This is one of the problems of agricultural marketing in Nigeria and care should be taken against it. To many farmers, agriculture only involves buying a land and cultivating the crop. Well, that's agriculture but when you talk about agribusiness, that case is much more different. Before planting a crop, conduct proper market research and determine the internal and external factors that can potentially affect your business.
This will include both the negative and positive factors that have the potential of impacting your business in the future. It also includes seeking for possible customers, identifying competitors and ways of beating them.

- Thinking agribusiness is a get rich quick scheme

Agribusiness is not like lottery or betting games that can turn someone into a millionaire overnight. Agribusiness will eventually turn you into a millionaire but not magically, you'll need to be committed in the business for some years. Every legitimate business requires patience and consistency.
It might also involve trial and error and mistakes, all these are there to teach you. Also, businesses loses are not inevitable and can happen to anyone at anytime.