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A Most Challenging Job

Agriculture Field

Mount Panderman at Batu City with lot of agricultural product
 As a small business entrepreneur, how do we make consideration and thought before taking the right decision? To prevent a loss in trade, if possible great benefit because of our decision. It was not easy. That's why I share my knowledge of this, for those of you who want to start or already were involved in small business. This is knowledge from my experience as someone who works directly in the field of agriculture. What do I have to actually apply generally to all businesses, especially those of you who are in a position of analyst and provide appropriate input to the right decision anyway?

  • - General rule in trading is always done the work plan. It's very important not to do business without planning in advance, because it can jeopardize the entire business activities. Plan carefully and cautiously, if necessary, do in-depth research, so that we know and watch over all possibilities.
  • - Knowing our strengths and capabilities, to which the limit. The main strength is the passion to work, without this spirit you are not going anywhere, maybe even more degenerate. Furthermore financial capital; very difficult to start a business without enough money. It might be , but we will grow very slowly. We're not going to immediately get a credit from the other party before proving our ability.
  • -The third equity is the honesty are indeed, this honesty will open a lot of good relationships with other entrepreneurs. Even be much help in financial matters. Last capital, full calculation courage, to try a new business with an innovative way.

For entrepreneurs who like a challenge will select business fields including high-risk, like stocks, foreign exchange and other investment. But there are other business challenges, although the risk is not as high as those mentioned above. What was that?

Most challenging job is to become entrepreneur in agriculture field and business. I have worked in many areas and type of business, but have never found that difficult as in the agriculture sector. Expertise and certificate we got from college or business course contributed little benefit. The best thing is to cultivate direct and absorb the experience to sharpen our business instincts; this experience is our main weapon to be successful entrepreneur. In order not to wonder why, I will explain the best as I can.
Perhaps you are thinking, can we get rich in agricultural business? The answer is: maybe, and yes, depend on hard work and the ability to analyze each of us. I've witnessed, someone with capital of approximately $ 2 million, get profit more than 30% of its capital with at least 2 months of hard work in the agricultural business.

In the trade generally is how you buy or produce goods or services then sold it for profit. Of course we also consider the matter of supply and demand, where that can be absolutely determine the price.

An example case: you are a manufacturer of cement that produce goods according to orders or contracts with a construction corporate, but of course you're also producing cement for inventory purposes. You have a salesperson who negotiates contracts with clients, do research and study of the price you ask. It may even lurk competitors offer price, after the contract is approved you will be producing orders under it. The first consideration is how you produce cement so that the price is favorable. This may be that you will adjust production costs, materials and other expenses. If you feel the value of the contract is less favorable, quality of the material can be lowered, while not violating the specification of goods and contractual agreements.

Back to the main topic of agriculture businesses; is that so simple? of course not. The first thing is about the prices, very easy to know the prices of an agricultural product, opened to everyone. What we required is a trusty trader who sells with competitive and reasonable prices, according to the quality of goods.
Price alone is not enough to become your benchmark for the purchase, there are other considerations.
In agriculture, the weather was a major factor in the supply and demand, for stock and sales. Why is the weather? Because agriculture has always been associated with the weather, isn't it?
For instance, your company will purchase 1000 metric tons of peanuts, which are known prices are currently about 1370 dollar /MT (example only). You feel the price is already matched according to the current market price it would want to buy it for 1385 dollar /MT, you feel that you must direct the transaction. But no, before you consider more important matters.

Think about it:

  • How long it takes the goods shipment until your hands?
  • Is the price was the lowest rates, not decrease anymore?,
  • Is this the beginning middle or end of the harvest?,
  • How about the demand of buyers?,
  • How long can you sell the goods, if long time how much added cost and depreciation?

That are all big question mark that you should think about before making a transaction or purchase plans. I do not mean to scare you. To be a savvy entrepreneur in agriculture, was much needed experience of how to process data from information, parameters related to agriculture (like weather, harvest,etc), to make a decision. Within ten times your transactions at least you "should" win 8 or 9 time. Because in the world of agricultural trade, the profit is only about approximate 1 or below 5 percent.

If you want a big advantage, you have to be smart to do the calculations with all possibilities. There are times when you have to wait and see till the prices to be the lowest prices before you decide to buy. You also have to quickly make a decision when a trader makes an offer suddenly. Never push your luck, this is not a gambling, although business is not much different from gambling. Error in making decisions without proper thought, can create huge losses. You may not be able to pay the bank interest rate, could go even eroded the initial capital, how dangerous it is. We also need to ask business associates about the latest news, such as harvest time, prices and so on. Make an open mind to trending information, about what customers want. They are believe in your service, to give the best goods at best prices. Extensive relationships with suppliers around the globe to find goods with high quality and price. It should be noted that the harvest of each country in hemisphere is different, it gives you a chance to get a continuous supply. You even have to meet them in person to negotiate a contract, in addition to ensuring the existence and availability of their goods, are also of course to control the quality of the commodities to be delivered to you.
I hope this experience beneficial for you, good luck.

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