Access to capital, land, water and inputs remains difficult for new and developing farmers and in this edition, we’re joined by Sulaiman Patel, social entrepreneur and grant-making officer. Patel shares his expertise regarding the specifics funders are looking for when farmers are applying for funding. He also sheds light on important things to avoid when applying for start-up funding.
“One of the main reasons why start-ups don’t get the financing that they need is because they don’t have their financial projections and financial plans in order,” Patel says.
According to Patel, it’s important to have realistic projections for 12 months. “Funders would like you to create a comprehensive business plan, and in this plan, you need to clearly articulate your goals.”
Calculating the start-up costs is another point in determining the initial expenses to launch a business. If you don’t have the land, what are the expected costs of acquiring the land, equipment, and just general start-up costs?
“Essentially this will help yourself and the funders have a clear understanding of what your financial needs are and how to officially allocate the resources that you currently have at your disposal,” Patel says.
Keep detailed financial records
There is nothing more attractive than a business that has its money in order. Patel says having a professional person working on your business account from the get-go will give the company a great boost.
“Farmers need to establish a robust accounting system to track their cash flow because it is key, and having the accurate understanding of your cash flow is very important.”
In this episode, Patel also discusses:
- Advice to farmers;
- Mistakes that could cost you; and
- Relying on the end result.
Want to know more? Listen to the full episode of Farmer’s Inside Track.
Option 1: Click here to listen on Spotify (all mobile and other devices).
Option 2: Click here to listen on any Apple device.
Option 3: Click here to listen on Google Podcast.
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