Food is the lifeblood of any human civilization. If there was no electricity, road or internet we would still survive. What we cannot survive without is food. So, food always sells and will always sell.
Vegetables are an essential in every kitchen and would be categorized as a fast-moving farm produce, because it sells fast, all day, every day. In major cities like Lagos the demand is always high.
So, if you are in a big city like Lagos or Abuja, this is a business for you.
One of the reasons why people run away from farming is the risks involved. The fear of losing everything to a pest invasion or a disease. That risk is very valid but the likelihood can easily be reduced.
How do you start?
Market research
Who is your main market? Food might be an essential product for everyone but you must have a target market because the competition is still very high and the product is quite generic. Here is a list of customer groups you could target:
- Market women: these are the least profitable as they have to buy the product cheap in order to resell but they are quite reliable in for quick sales.
- Restaurants: Direct supply to restaurants can be quite profitable as you can sell to them at the market rate thereby cutting off the middle man, but you will have to have a vehicle for making deliveries.
- Direct-to-customer: You can sell directly to the end user via social media website or you open a store.
Production
Land: for proximity to the city, it would be ideal to get a land within or close to the city to reduce the cost of transportation and ease of access to customer.
You may purchase a land or rent one. Renting would be preferable since the cost of land in or around the city is quite high. Vegetables are short term crops so owning the land is unnecessary. 1 acre of Land would be a good starting point.
Labour: To eliminate the risk for failure due to disease and pest, invest in hiring a farming consultant or an agronomist. The specialist should be able to guide you through the process and provide you with a budget for the project.
They would also help with the sourcing of farm hands. He would also advise on what kind of vegetable would grow well in you selected area. It is important to hire the agronomist before you get started.
Knowledge: YouTube is your friend! Take out the time and learn all you can about farming and growing vegetables. Read books, take courses. You might be hiring an agronomist but you have to know what you are getting into.
Marketing
This can be a tricky aspect of farming because of the product’s short shelf life. Your market has to be ready to receive the goods before you harvest. Make sure you have a ready market.
If you are adverting on social media start preparing your customers for harvest before the day. If you will take your goods to the farmers market then ensure you have a spot in the market and you understand their terms for sale.
Some farmer’s market would fix the prices of the goods sold there so you have to be ready to accept whatever price they dictate.
Finance
For any business it is essential that you keep track and record of the money coming in and going out. You need to know when you are making a profit or a loss.
In the farming business, for the first few months you will be incurring a lot of costs for laborer’s fee, fertilizers, admin, equipment etc.
We have an easy-to-use accounting journal to help you keep track of your business activities. All you have to do is download and print and you are ready to start recording all the cash movement in your business. Click here to purchase for just N1,000.
it is important to know how much you are investing and also to control the spending. The two most important accounting document you need is a budget before you get started and an accounting record.
If you are looking for a great accounting software for your business check out ZOHO books (click here). I personally use Zoho books for my business and for my clients. They have an amazing free package that you can get started with.
You could also check out our article on the list of the top accounting software for small businesses ( click here)
