Starting a Food SME Business.
Undoubtedly, Food is and will always be a crucial thing that all humans need no matter the social or the economic status. From the time past when humans were still primitive foragers and gatherers to the future mode of agriculture (precision agriculture?), food will always be essential. However, food is not readily available for all peoples, just like in everything, some lack while others have more and the history we have of the past and the news all around us that we listen to or read up in the present is a proof of that. The world’s population is expected to increase by 2 billion persons in the next 30 years, from 7.7 billion currently to 9.7 billion in 2050. This shows that there would be more mouths to feed and therefore there would be a higher demand for goods, and in this case food.
You might have access or power to feel all the mouths in the world but starting a business a food SME is a way in which you can be of good value to the society yet at the same time make some money to sustain yourself. Many people have no ready access to food supply as most do not have direct access to farmers or farms which are usually and ideally situated very far from the concentrated human settlement, it is necessary that there are source points that an average person can go to get the needed supplies. This is why Food SMEs are needed. They serve as the grassroots’ sources of supply of food and other crucial consumables to the ordinary people. They are the easy access for the ordinary or average citizen.
Why should you
You might want to ask for a reason you should think of starting a food SME, or why should you care about it at all. Well, I will try to give a few advantages can be gotten from taking on such an endeavor:
Source of income: The United States’ Department of Agriculture, the Economic Research Service gave highlights from the September 2022 Farm Income Forecast in which the Net farm income, a broad measure of profits, is forecast at $147.7 billion in calendar year 2022, an increase of $7.3 billion (5.2 percent) in 2022 relative to 2021. The 2021 value is an increase of $45.9 billion (48.5 percent) relative to 2020. When prior years are adjusted for inflation, net farm income in 2021 was at its highest level since 2013. Net cash farm income is forecast at $168.5 billion in 2022, an increase of $22.1 billion (15.1 percent) relative to 2021. The 2021 value was $29.6 billion (25.4 percent) above 2020. When adjusted for inflation, 2022 net cash farm income is forecast to increase by $13.5 billion (8.7 percent) from 2021 and be at its highest level since 2012. Net cash farm income in 2022 would be 34.5 percent above its 2002–21 average of $125.3 billion. Net cash farm income encompasses cash receipts from farming as well as farm-related income.
Not to just go on boring you with all the data. It shows that there has been a constant increase in the net income on agriculture for about a decade, and that also kept account of the inflation that has been going up throughout the years. So, with all the economic issues, the net income gotten on agricultural business has always been increasing steadily.
Therefore it really won’t be far reached or an exaggeration to say that starting a Food SME today, a means of getting consumable agricultural products to the end consumer will give you a fair market share of the estimated income enough to cater for your living expenses, and for you to live a comfortable life.
Social and Community Building: A little bit of story for you to see why this point is just as important. Over the evolutionary history when humans were still gatherers and hunters they could not stay together in large groups because there would be no adequate supply of food to maintain such numbers. Yet, humans are social animals, but due to their foraging habits they could only stay in very small groups.
However, throughout the scattered human population, and especially in the near east, places like Mesopotamia, when the means of agriculture such selectively planting crops and raising animals were employed, it led to a major factor that made it possible for humans to live together in large populations. As a result of people coming together, it made specialization possible with people delving into different occupations to improve community growth, while some farmed, another made implements for the farming, and trading was made possible, and that’s a link between trading/economics and agriculture right there.
Therefore, in our years of living together, one of the ways people have come to stand out among others is how much they have contributed to the state of the society or community. Even if it is not explicitly stated in the community, starting a Food SME business provide a local hub of food for people which can also enhance societal growth and social cooperation between people living around. Not to mention that the money you earn will also be spent on buying other needed things will in turn enhance the free flow of market and consequentially community building and economic growth.
Job Security: Different jobs has been over history, more will go off, and new ones will be, but businesses based on agriculture has become established over the years more and more so much that economical models are made after it. So, it is not farfetched to say that agribusiness is a stable business as regards its lifespan. Perhaps you are yet to be convinced, so, let’s try this exercise: Think about a single day in your calendar, the activities you carry out within that day. Now, think of each requirement to carry out those activities or perhaps the gears needed. Let me help a bit, is there a single day you do not put on clothes or is it possible you never eat at all? While agriculture generally provides raw materials for a large percentage of what we use, we are currently focused on the Food aspect which is even more important. Food, Shelter, Clothing, Energy, and Education might be important to our daily living, but of them all is it arguable that food is the most pressing need? So, think about it, how can it ever loose relevance?
Health and Environmental Building: In an ever increasing awareness about the situation our home planet and our health as humans, almost no one can claim to not have at least heard of the prospective hazard we can face if we are negligent about the effect of things we do have on our environment. And why do we care so much about our environment? Oh, is it because oxygen smell so nice and we wouldn’t want to lose such fragrance? Of course not! By the way, oxygen is a colourless, odourless gas but a very important one for our health and survival. The environment have a huge effect on our health, as well as the food we eat. [link: Agriculture and climate]
Organically farmed produce tend to have better nutritional value for human health. And this is gotten from farms, which you can in turn supply locally to people around you. Aside from the people living better, and being less prone to diseases, such farming practices enhances the natural states of the environment.
How to Start
Generally, to start a business of any kind you need to make an adequate research into so you don’t end up with a business no one wants to engage with. In this case, the research you need to undertake should at least take into careful account this two categories:
> What type of food do most people around you consume or buy? What is their source of income? Are there any major establishments like industrial or educational complexes around where you are? What is a major interest of people around you?
Then, who are you target customers? What do they do? In short you need a data on the demographics of the people around and especially your target customers. This will help you to come up with a good Business plan for your Food SME business.
>You need a constant source of getting the produce so as not to disappoint your customers. You must note that the trust the customer has in you is one of most important assets, it is simply your brand, because your brand is the gut feeling that the customer/consumer has towards you and/or your business. Therefore, if you have a constant supply, the customers will sub-consciously, and even consciously come to recognize and understand that you will not fail them, and this will help build your brand image.
DayDone is a supplier for Food SMEs and Agricultural SMEs generally. We serve as the middleman between the farmers and the SMEs who are also closer to the average end consumer.
Sourcing for Capital: Capital in this case simply mean the money and other resource you need to launch your business. To start a business, you need some money to finance the process of providing the goods or services you will be selling to your customers. These can come from various sources, your savings over time, money from family and friends (perhaps loan). However, it is really not advisable to start a business with a loan from a bank for example.
You might be able to get some investment and/or grants from various organizations: governmental or non-governmental willing to invest into agricultural growth.