MANAGING Tough Times

Success Factors for Creating a Successful Value-added

Agricultural Business

MANAGING Tough Times

Success Factors• Leadership

• Committee Members

• Project

• Investment

• Process

MANAGING Tough Times

Leadership

• Find a leader(s) (Champion)

• Your leader should be a farmer

• The leader needs to convey a vision of the project

MANAGING Tough Times

Leadership

• Leaders must be honest, steady and trusted by the committee members

• Leaders should be rewarded for good work.

MANAGING Tough Times

Committee Members• Members must be involved and feel

ownership of the project

• Members must focus on learning

• Member have to discover information – not just be told

MANAGING Tough Times

Committee Members• More than farmers need to be involved

(agribusiness, extension, etc.)

• Members need to think outside of the box.

• Members need to put money on the table.

MANAGING Tough Times

Project• When examining a potential project, focus first

on why it will work, then on why it won’t work.

• Watch out for group-think

• Answer the question, “Why will this project be successful”.

MANAGING Tough Times

Project

• Use advisors and consultants

• Consider partnering with other value-added groups and industry players

• Focus on building a business – not raising commodity prices or creating jobs

MANAGING Tough Times

Project• Understand the industry – do industry

scanning

• Build business in response to market needs

• The feasibility study (should we do it) leads to the business plan (how do we do it)

MANAGING Tough Times

Project

• Legal advise – get it before you need it (prevention vs. treatment)

• You need Directors and Officers Insurance

MANAGING Tough Times

Investment

• Don’t underestimate capital needs

• Don’t short yourself on equity

• Don’t be ashamed to ask for money.

MANAGING Tough Times

Investment

• Be open with the investor/lender

• Farmer investors “where his/her heart is – his/her money will be”

MANAGING Tough Times

Process

• Having a vision is critical – but execution of the vision is also critical

• Make a commitment to get to the finish line

• Make action plans and timelines – try to achieve them

MANAGING Tough Times

Process

• Have regular meeting with prepared agendas and good sets of minutes to record decisions and progress.

• Keep your eye on the prize (don’t let personality conflicts and other distractions get in your way)

MANAGING Tough Times

Process

• The road is long – don’t give up