How to Make Money From Agro-Business: Practical Tips On Buying and Selling Agricultural Produce in Nigeria
Agriculture is a profitable venture. This has been proven beyond every reasonable doubt over time. In fact, you can easily make money from agro-business within a short period of time and with a short capital.
I have come across questions on certain issues relating to agro-business and this is because people want to know. Some of the issues are; the most profitable agricultural businesses, the list of agro-allied business ideas, how to start agriculture business, business opportunities in agriculture, most lucrative agricultural business in Nigeria, how to invest in agriculture, money-making agricultural business ideas, how to make money through agriculture etc.
These issues gave birth to this article which will focus on how to make money from agro-business.
Related: How to start a profitable fruit business in Nigeria
For emphasis, agro-businesses simply refer to all the businesses that are connected to agriculture. It could be on crop production or animal production. It could also be on services for agricultural business owners or selling of certain supplements for the well being of livestock and plants.
The bottom line is that agro-businesses are very many and you can start some of them and become very rich.
When you go through the list of businesses in Nigeria or best businesses in Nigeria or even business ideas in Nigeria with low capital, you will find agricultural-related businesses in the top ten of the business with great potentials.
It will be erroneous to say that there are best agricultural businesses but some do have better potentials than others. There is indeed no doubt that you make money from agro-business because it is quite profitable.
Related: Best business ideas for animal lovers in Nigeria
The focus, however, is on buying and selling agricultural produce. You won’t need to go into production here to make money. All you need to do is to set up machinery that makes you the connecting wire between the producers and retailers or even consumers.
It sounds pretty easy, right? It is pretty easy. Why do you think agriculture is one of the fastest growing businesses in Nigeria? Just check the business opportunities in Nigeria and you will definitely see agro-businesses there.
Three approaches you can adapt to make money from agro-business
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Buy/sell small quantities
As the bible says, despise not the days of your little beginnings. Most profitable business opportunities would sometimes require you to start small. The same is applicable to agro-businesses.
One of the approaches you can adapt to make money from agro-business is to start small. Here you can buy and sell small quantities. You will most likely operate within the same state and this will require little capital.
All you will need to do is to buy the products you want to trade from farmers and sell to the market within the same vicinity.
There is likely going to be little returns on investment (ROI) with this approach. It is only ideal in situations where there is little capital to invest.
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Medium/Large scale
You can also consider the approach of medium and large-scale sales. This approach is one of the lucrative businesses in Nigeria. It involves buying of goods from one state and selling in another state or country.
This works by getting goods from one state where they are cheap and easy to get and selling them in another state where they are scarce. You will then pick another product that is cheap there and sell in your state A.
You can shuttle between the north and east to make this business work. It does need a high capital base to pull off.
This shouldn’t be a problem because the business attracts high returns on investment.
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You can store now and sell later
You can make money from agro-business by following this approach. It is called store now and sell later approach. It involves buying agricultural produce during their on-season periods when they are very cheap and storing them.
To avoid spoilage during storage, you are advised to use the necessary preservatives to keep them fresh and safe. The idea is to sell them at higher prices during the offseason. The profit could be outrageous.
This particular approach is best for people who are doing other businesses or engaged in other jobs and are looking for places to invest their money. The reason is that the returns on investment could take months before they materialize.
Do You Want To Make Money From Agro-business? Here are things you must do:
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Research the business
Agro-business is actually a large business and it requires that you specialize in some aspects. You don’t really have to be a jack of all trade while mastering none. Specialization comes from understanding what the business is all about.
Therefore, take your time to go through the business and understand the intricacies involved so as to be better prepared when you start.
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Write an agro-business plan
The next logical thing to do is to write a business plan. Your ability to plan prevents you from failing. So, write a good business plan detailing the requirements for starting and sustaining the business. You will find out that everything will seem easy and achievable once a business plan is in place.
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Register the business
You may need to register the business with the appropriate authorities. In Nigeria’s situation, you will need to see those guys at Corporate Affairs Commission. Notice that I said ‘may’. It is indeed for a reason.
Registration won’t be necessary if you are operating at the unorganized level. If you just buy and sell without necessary using a company, you don’t need to worry about registration. However, you can start the process of registration when you have built a brand around the agro-business and you want to make money from agro-business using the brand.
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Decide what to sell
As earlier stated, you can’t sell everything and you cannot really operate at all levels. If you want to make money from agro-business, you will need to make a choice on what products you want to be selling and at what level you want to be operating at.
You can become a retailer, a wholesaler or a distributor. You have to make that choice.
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Advertise your business and hire staff
When your business is set and you are good to go, you will need to advertise your business through all the means available to you. You can check out the social media platforms available to you and you can also do offline advertising.
More so, you will need to have people at some point that can help you run the business. The number of personnel needed will depend on your level of operation.
