Photo credit: Tawatchai07/Freepik
I published an article on how you could start a poultry farm with very little or sometimes no money. However, you are not running your farm as a hobby – you intend to make thousands, if not millions of Ghana cedis annually. To establish a poultry farm that can provide you with an exceptional standard of living, you need to invest a substantial amount of money. Unfortunately, the amount of money usually required to start such a poultry farm is unattainable by most people. Hence it would make a lot of sense to find investors.
Even though beginners or inexperienced farmers are the ones who need the money most to set up their businesses, it is usually those who have built a profitable business or have demonstrated some form of traction that attract most of the investors. It sounds like a paradox, right? I will soon explain why this is the case.
Supposing you owned a taxi, who would you hand over your car to, a driver who has five years experience or someone who doesn’t know how to drive but has promised that he will learn how to drive a car as soon as possible? Obviously, you would hand over your car to someone who actually has experience. The same goes with investors: they would prefer to invest in a company that is showing some potential or already gained traction. Therefore, instead of worrying too much about getting investors in the initial stages, try and start something small. After you have demonstrated impressive growth or have made some profit, usually after two years, you can confidently begin searching for investors.
Now that your farm has demonstrated some growth, what you would want to do is to approach some high-net-worth individuals (so-called “angel investors”) in your vicinity. These individuals can provide you with the capital to purchase more day-old chicks, expand your structure, hire more farmhands, etc. Before looking for investors, you must ensure that your farm is registered as a Limited Liability Company because angel investors typically provide capital in exchange for equity. Also, it may be more advantageous to start looking for wealthy individuals within your family and then maybe your friends.
You should know that investors aren’t going to dish out money to you without any reason. Therefore, it is imperative that you keep accurate financial records from day one. This way, you can easily prove the viability and long term prospect of your business. Also, potential investors may demand a business plan before they invest. A business plan is a written document that defines the objectives of a business and describes the strategies which would be employed to achieve those objectives. Therefore, if you need a professionally drafted business plan for your poultry idea but don’t know how to start, you can contact us today.
Now, remember that getting funding for your poultry farm isn’t very easy. You may approach 100 potential investors and get rejected by all of them. Therefore, you shouldn’t give up. Keep talking to more people so that you can increase the chances of your farm getting funded.
Pkom 