How do you know if an agribusiness idea has potential? Agribusiness myths abound, from the idea that it takes millions of dollars to start a business in this industry to the belief that you need years of experience to succeed in agribusiness.
These myths may have once been true, but with the Internet at your fingertips and new opportunities around every corner, they’re not true anymore. Here are five of the most common myths about agribusiness and why they’re not true anymore.
1) I’m not an expert
While it’s often said that experience is a great teacher, experience doesn’t always equate with expertise. Many experienced business owners are quick to offer advice, but as is often said: Novice mistakes are easy to fix; it’s the expert mistakes that kill you.
For example, if you’re getting ready to start a business venture, someone who has been there may have plenty of good advice and know-how to share. That being said, don’t just take their word for it—ask questions and do your homework on your own. If they have a solid track record or high credibility you can trust them more than people with little or no experience.
2) An idea won’t make me rich
While it’s not a simple formula, having a solid idea is important for launching a successful agribusiness. Ideas can be your route to profitability and success, but you need more than just a good idea. First and foremost, you need customers that are willing to pay for your product or service before you invest any time, money or energy into getting started.
If customers don’t have cash in hand ready to spend on your idea—or they aren’t willing to buy it at all—it doesn’t matter how great of an entrepreneur you are, there won’t be any profit at the end of your journey.
3) Nothing good comes from Africa
This old wives’ tale is dangerous for two reasons. First, as Nigerian and African markets grow, American businesspeople should be prepared to invest there. Second, many African countries are experiencing rapid economic growth—and that doesn’t happen without new entrepreneurs and companies trying their hands at building innovative companies from scratch.
There are certain risk factors involved with investing in Africa; however, there are also opportunities for savvy investors. Plus, if you decide not to invest in a country because of one particular myth, you could be missing out on good investments elsewhere around the world.
4) All agribusinesses are about growing crops
A large number of agribusinesses, especially those focused on technology, have nothing to do with growing crops. But because we’re living on a planet full of 7 billion people and counting, many agribusinesses are indeed working on food production and distribution—but it doesn’t always involve planting seeds.
What’s more, any company that works with food, whether it grows or processes it (or both), is considered an agribusiness. For example, Nestle is one of the world’s biggest producers of processed foods and beverages—and therefore considered part of agribusiness—while farms like Whole Foods are part growers and part processors.
5) I don’t have enough money
If you’re a micro-entrepreneur with just a little bit of capital, don’t let finances stop you from starting your own business. There are many microfinance institutions that will provide low-interest loans to entrepreneurs with limited financial resources, so you can build your business and grow over time.
The goal here is to start now, make progress on ideas, and build your skills. We call it micro because even tiny steps can add up big when they keep going—just like interest accrues on a loan—and someday soon (if not today) you’ll be ready for greater challenges. Remember: growth comes from challenging yourself.
Conclusion
It’s true that many people fear taking a leap of faith when it comes to investing. That’s why you should do your homework before putting money into something that can affect your life for years to come. These five myths are a great place to start if you’re looking for a way to jumpstart a conversation about how important it is—and how feasible it can be—to invest in yourself and your ideas.
