Posted by Hansie Britz on 29 April 2018

HOW TO START YOUR OWN GARLIC BUSINESS

                                           

Garlic (Allium sativum) is a hardy crop that can survive low winter temperatures. While temperature and day length influence bulb formation, this is to a lesser extent than demonstrated by onions. Most conditions suitable for onion production also apply to garlic cultivation, with the ideal growth temperatures between 13oC and 24oC.

THE MARKET

The market is not just South Africa. Exporters can handle everything produced here for export to Germany, Australia etc, especially large cloves which travel well and have long shelf- lives. Locally, it can be sold to traders either whole, chopped, minced or flaked. Great strides have been made in the field of medicine and garlic is featuring in antiseptics and pain killing drugs. Normal garlic consumption has increased tremendously over the last few years.

PLANTING

Space the divided cloves 8cm to 15cm apart in rows 30cm to 40cm apart. Plant the cloves approximately 50mm deep in raised beds or on level ground, by hand or mechanically. While the ideal planting date varies from one area to another, the general recommendation in South Africa is from February to May.

IRRIGATION

Garlic is successful under furrow, sprinkler, or drip irrigation. Its relatively shallow root system makes it sensitive to moisture stress throughout the growing season. While soil type determines the frequency of irrigation, it does not affect the total amount of water needed, and by using mulch will reduce moisture less from the soil surface.

LAND REQUIREMENTS

Initially, in order to plant 10 000 cloves, approximately 600m2 is required. The yield from this land should be approximately 15tons/hectare, depending on the soil type, local conditions etc. Sandy soil makes for easier weeding, growth and harvesting, but any type will produce a good crop should the right additives, fertilizer etc be employed.

WATER REQUIREMENTS

This will vary according to the soil type. A reasonable borehole will suffice.

DO YOU WANT TO KNOW MORE OR NEED HELP WITH A PROFESSIONAL FARMING PLAN THAT MEET INVESTORS CRITERIA CONTACT US NOW AT: 084 583 3143 or money@global.co.za

Posted by Hansie Britz on 29 April 2018

ORGANIC FARMING

                             

 

WHAT IS ORGANIC FARMING?

Organic agriculture is a production system that sustains the health of soils, ecosystems and people. Organic agriculture combines tradition, innovation and science to benefit the shared environment and promote fair relationships and a good quality of life for all involved.

Examples of organic farming methods include:

* Rotating crops between fields. This helps keep pests from building up and improves soil fertility.

* Planting selected herbs and flowers to attract beneficial insects which ward off unwanted pests.

* Using biological insecticides and make use of pests natural predators to control pest populations.

Organic farming produces nutrient rich, fertile soil which nourishes the plants. Keeping chemicals off the land protects water quality and wild life.

ORGANIC MEAT

Organic animal suppliers have strict protocols that include treating their cattle humanely and allowing them to mature naturally. They are grazed naturally in a free – range environment minimizing stress and producing high quality meat that is free from contaminants. It costs more to produce as animals grow more slowly on natural grazing., hence more land is needed and higher interest costs are incurred. The certified farm has to produce 90% of the feed on the farm. “Certified Organic Meat” is a guarantee that meat has been produced free from any additions such as chemicals, antibiotics and hormones, and kept separate in the supply chain to the consumer. As only natural, biodegradable products are used, water and the environment become cleaner. Farmers and their workers enjoy healthier working conditions.

HEALTH BENEFITS

The hazards for human health of consuming products contaminated by harmful pesticides include increased risks of cancer, reproductive problems and neurological damage. Organically grown produce on the other hand is free of chemical residues, has a much higher vitamin and mineral content and is usually more flavorsome (which is why many top restaurants prefer to use organic ingredients.

CERTIFICATION

A certified organic product means that the produce and the farming process has been inspected over a period by an independent specialist certification agency to verify organic authenticity to the consumer. This process normally takes place over a time frame of about 3 years.

Look for the certification seal or name of the certification agency label. When you see this claim, it means:-

  • No harmful chemicals have been applied for at least 3 years.

  • The farmer and processor have annual certification inspections.

  • They have kept detailed records of their practices and have a recorded audit trail.

  • They use ecologically-friendly methods and substances to improve the soil and control pests. 

DO YOU NEED MORE INFORMATION OR HELP WITH A PROFESSIONAL ORGANIC FARMING BUSINESS PLAN – CONTACT US NOW AT: 084 583 3143 or money@global.co.za

Posted by Hansie Britz on 30 March 2018

REASONS WHY YOU NEED A PROFESSIONAL BUSINESS OR FARMING PLAN

                             

Why do you need a business or farming plan? You already know the obvious reasons, but there are many other good reasons to create a business/farming plan that many business owners don’t know about. A good business plan is never done. If your business/farming plan is finished, then your business is also finished. As your company gets used to the planning process, the business/farming plan is and should always be a work in progress. It gets a big refreshment every year, and a review and course correction every month.

Important reasons why you should need a business or farming plan:

1. Start a new business or farming operation.

You will use a business/farming plan to establish the right steps to start a new business or farming operation, including what you need to do, what resources will be required, and what you expect to happen.

2. Growing your existing business.

Establish strategy and allocate resources according to strategic priority.

3. Deal with professionals.

Share selected highlights of your plans with your attorneys,accountants and consultants.

4. Develop your business alliances.

Use your plan to set targets for new alliances, and use selected portions of your plan to communicate with business partners.

5. Back up a business or farming plan loan application.

Like Investors, lenders want to see the plan and will expect the plan to cover all main points.

6. Seek investment for a business.

Investors need to see a business or farming plan before they decide whether or not to invest in any business.

7. Share and explain business objectives.

You will be able to share and explain the business objectives to your management team, employees and any new personnel. You can also use selected portions of your business/farming plan to form part of your new employee training.

8. Sell your business.

Usually the business or farming plan is a very important tool of selling your business. Help buyers understand what you have, what it is worth and why they should want it.

9. Decide whether you need new assets.

Decide on how many assets you will need and whether to buy or lease them. Use your business or farming plan to help decide what’s going to happen in the long term. How long will this important purchase last in your plan?

10. Decide whether or not to rent new space.

Rent is another new obligation, usually a fixed cost. Do your growth prospects and plans justify taking on this increased fixed cost.

SAMPLE OR GENERIC BUSINESS/ FARMING PLANS SUCK!!

Business/Farming plans are made not found. Sample plans can help in certain areas but this is not a good idea to use them as they will not meet the criteria of most investors/lenders. It is far better to start at zero, and write your own business/farming plan or make use of a experienced/professional business plan and farming plan writer. You make your own plan; you don’t find one. Every business is unique and every business/farming plan is also unique. Even if you manage to find a business/farming plan for a business very much like yours, it would never have the same owners, the same management team, the same strategy and probably not the same market or location either.

WARNING – BE VERY CAREFUL OF CHEAP, LOW COST OR GENERIC TYPE OF BUSINESS OR FARMING PLANS ADVERTISED ON THE INTERNET. HIRING A CONSULTANT AT A CHEAP PRICE WILL BE DISASTROUS AND CHEAP QUALITY AND WILL NOT MEET INVERSTORS CRITERIA – JUST A WASTE OF YOUR MONEY – SOME CLIENTS DISCOVERED THIS TOO LATE AND ONLY REALIZED THAT THEY WERE TAKEN FOR A RIDE WHEN THEY PRESENT THEIR PLAN TO AN INVESTOR.

Posted by Hansie Britz on 25 January 2018

TEN RULES TO WRITE A KILLER BUSINESS OR FARMING PLAN

                                     

A Business Plan or Farming Plan is a selling document; a succinct breakdown of how, where, and why your business will generate a profit. Your business plan must convince potential investors – be they bankers, venture capitalists or private investors – to throw money your way. If you can convince them via your business plan or farming plan that they will realize a profit over time, you’re well on your way.

If you are setting up a farming business then it is prudent for you to put pen to paper in a farming business plan. If you want money for your farming operation this will help you with it and even if you are fortunate to have sufficient capital to start-up your own farming operation then a farming business plan will support you in your farming business strategy. This will increase the chances of your business being a triumph, which cannot be a bad thing.

Here are ten rules to write a killer business plan or farming business plan:

Know your reader. Always remember who you’re addressing. Financiers are hard-nosed capitalists, so they want firm facts and figures and sold details as how your idea will generate profit.

Research your potential market. The more you know about competitors and your customer base, the more you will be able to impress your potential backer. Your business plan or farming business plan must provide credible data about the size of your potential customer base, its needs, and trends affecting it. You must also show the respective strengths and weaknesses of your competitors, their market share and how your product or service matches up to theirs.

Follow the format. Business plans and Farming Business Plans are about facts and figures, not creative genius. There are definite rules for compiling one. A professional business plan or farming plan should have (but not limited to):

  • An Executive Summary;
  • An explanation of the business idea;
  • A Management review;
  • A Marketing strategy;
  • Operations Plan;
  • A Risk Assessment;
  • Financial projections covering cash flow, balance sheet and profit.

Keep the type size and line spacing generous and the margins wide so that the document is easy to read. Keep your language simple with minimal technical jargon. Don’t waffle. Get straight to the point.

Drive home the USP. The essence of your business idea is its “unique selling proposition” or USP. Your USP must separate your product or service from the competition; make it unique, something the public will buy because it meets a definite need. Use your USP as a point of reference throughout your plan and make all your research and financial  data support this selling proposition.

Make your executive summary sing. The first thing a financier will read in your business plan or farming business plan is the “executive summary”. It must, in a couple of pages, describe the entire business plan or farming business plan in a zippy, exciting way. You have to capture and retain the reader’s interest. Imagine you are making a thirty- second commercial of your entire plan; that limits you to mentioning only the really important elements from each section. Write it with the USP in mind and distil all the important information to highlight your competitive edge.

Punt your expertise. Let the reader know your history and skills relevant to the business idea. Describe the expertise of your associates too, even if they are outsourced strategic partners. It is common these days for small companies to use established businesses to handle certain areas of the business, like accounting and distribution.

Show marketing savvy. Venture capitalists will look very closely at how you intend to bring your product or service to the market. Innovative marketing ideas go a long way swaying financiers. Describe in detail how you intend to gain market share, how much, and in what time period. Explain how your competitors reach their market and describe how you intend to outflank them.

Be realistic in your financials and roll-out schedule. There’s always a temptation to paint a rosy picture for your potential backer i.e. juicy returns in double- quick time. Be conservative in your predictions of how much and how quickly you will sell. Remember, your backer will hold you to your promises.

Know your numbers. Crucial to getting the capital you need is knowing how much to ask for and what kind of financing you need. Your financial projections and roll out schedule will illustrate your financing requirements, but, you must state what kind of arrangement you want to enter into with your potential backer, be it a loan (carrying repayable interest) or equity (offering a slice of future profits). Declaring exactly what kind of financial assistance you need will inspire confidence in your potential backer.

Seek advice. There are several organizations in South Africa willing to offer advice and information on critical areas around the plan. A great business idea and a tight business plan or farming business plan will get you a hearing with potential backers.

IF YOU NEED ANY HELP IN THIS AREA OR A FARMING PLAN CONTACT US NOW AT: money@global.co.za or 0845833143

BEWARE OF CHEAP LOW COST OR GENERIC TYPE OF BUSINESS OR FARMING BUSINESS PLANS. THEY WILL NOT FLY WITH ANY INVESTOR.

                                  

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Posted by Hansie Britz on 17 January 2018

FUNDING REQUIREMENTS

                                   

Capital is vital for you to grow your business and take advantage of opportunities when they occur. One way to get this capital is to allow others to invest in your enterprise. Such an investment involves exchanging funds for equity in your business. The difference between equity and debt is that debt involves borrowing money which you will have to pay back with interest. Equity funding, on the other hand, involves selling part of the ownership of your business. the purchasers (share holders) assume that, with the use of their funds, the enterprise will be profitable enough over time to justify their investment. 

Don’t equate shareholder ownership with control of your business. You can still retain day-to-day control of your business without having 100% ownership. If you’re unwilling to share ownership, then you will not receive any investment capital.

Investment is often provided in stages by the capital investors against agreed milestones. In other words, you will receive some of the funding which you must use to meet agreed objectives. Then you may receive additional funding, again against agreed objectives, until all objectives are achieved.

You should select investors based on their total contribution to your business, not just how much money they will give you. It is possibly more important to get an investor that will help you grow your business rather than one who simply provides a sum of money.

As your enterprise grows, you may seek multiple investments. This will often involve different investors. Select those investors that best suit your company’s current need. For example, your first investment may require capital for development. For this you might need an investor with technical expertise.

Following a successful development program the next investment might be for production and marketing. Here you might need an investor with marketing expertise. With a successful market entry you may need additional capital to address the international market where an investor with international contacts would be beneficial.

You’ll probably find it easier to acquire the third investment than the first, because by then you’ll have proven you can meet given objectives and milestones. Remember to take advantage of all the assistance and help that’s out there in the marketplace when you’re seeking investment capital.

IF YOU WANT TO DISCUSS THIS FURTHER OR NEED ANY HELP/ASSISTANCE CONTACT US NOW: Email – money@global.co.za or 084 583 3143

             

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