Why most agribusiness personnel usually end up messing investors fund.
We all go online to read…
“Make 10 million from an acre of cucumber”
“How cassava fetch me 50 million on 5 hectares”
“40 tonnes of tomatoes from an acre”
Then we start working out calculations, expenses and returns based on the figures we got online.
What most people did not realise is that the people that wrote those topic are bloggers who has never stepped on the farm before.
99% of agriculture write ups online are written by bloggers to attract traffic to their site.
And then the agripreneurs ran to the farm with the bloggers returns on investments calculation.
The agripreneurs will now call upon investors with the promise of giving them some ridiculous interest from the farm.
Most agripreneurs will always promise 40-100% returns on invested money.
There are several type of agripreneurs.
1. Those that have never farmed before but read data’s from bloggers timeline with which they are running to farm.
This set of people have no intention of scamming the clients from the beginning but the stupidity is that they are venturing on a risky journey based on speculations.
During production they start realising that the paper work is quite different from the real farm work.
But then they have collected peoples money which they can not retrieve back from the farm not to talk of recouping the return on investment.
Recovering back from the project is always zero due to lack of practical experience before venturing.
For them to recover the first investors fund mean they need some other new investors fund to start the process of farming again.
Which if they are lucky (farm is not run on luck) they could recoup back. But in most cases there is no such thing as luck but hard work on the farm.
2. Second set of agripreneurs are those that have passed through the first stage of investing peoples fund to discover they make a big loss.
But then they could not back out because they are heavily indebted.
Investors are waiting for their fund and ROI.
At this stage they start soliciting for more investors base on the suppose name they have made from the initial failed project.
They keep up the image of bigmanism showing off training, conferences at hotels and with projectors.
What they now survive on is the training fees, the consultation fees, the lectures etc.
3. Another set of agripreneurs are those that set out to defraud people of their hard earned money from onset.
“If 100 people collates 100,000, that will be 10,000,000. I will only invest N1,000,000. Then I can use the rest to sort myself.
These are the real smooth talkers. The intention was never to produce anything from the farm but to collate fund from people.
First thing they do when they get the investors fund is to put up nice packaging starting from farm house, signpost, designs and all.
Nice office space, utility vehicle, website and presentable farm building is what they use to attract people to put down funds.
They come up with nice figures and interest for prospective investors.
Who doesn’t want to double money?
By the time people get to realize the scam, they must have collate several millions.
Eventually they start hiding, blame game, excuses for people to eventually forget the funds.
Did I say farming is not profitable? Capital No.
Farming is profitable when you go through the right process to achieve result.
Most of us are doing short cut to farming.
When the story are too smooth, it’s reek of scam.
We skipped a lot of good agricultural practice requirements that are necessary to succeed in farming.
And then, majority that would have followed the best agricultural processes do not even know what the processes entail.
There are also some agribusiness people that will fight you tooth and nails when you point out that the method they are about to use is not the best.
Many agripreneurs that call for investors fund has no idea of what it entails to manage a farm.
They’ve only manage a farm online and on papers.
It took me several years of trial and error to understand the techniques of farming profitably.
At this stage of my farming experience, I now preferred to train or teach people how to do it by themselves rather than collecting peoples fund considering all the unforeseen challenges involved.
I am forced to put this down due to another case of investors dragging for their fund from a suppose agripreneurs.
Farming for someone or bring money I can farm for you is not a good venture.
Please keep your fund pending when you can farm for yourself.