Creating a company in the Agricultural sector. Agricultural Engineering. Colombia
: "How to Create a Business in the Agricultural Sector
At best, these companies emerge after training processes that SENA (National Learning Service) gives to the community in a specific development issue, where UMATA can continue working with the group interest. Unfortunately this does not guarantee an extension of that business over time, at a time when these institutions gradually (by the initial interest by creating high expectations for the same occupation of these entities), will peter out, creating problems community ranging from the lack of credibility in their rulers to economic breakdown and social breakdown within the group.
Experience in creation of businesses has led me to determine that a simple training (whether on important issues that generate development for a region) is not sufficient reason to generate the formation of a business or commercial, let alone agriculture. The latter was affirmed because the agriculture in our country are additional risks to which they may encounter when creating a commercial enterprise in town, as discuss below.
For me, the development of an enterprise is closely linked with human development of each of the individuals participating in it. If a member of a company achieves future 'be better' with himself and his family, to communicate and behave 'better' with the other partners, but this is done apart from a personal growth, maturity to drive incurring and sense of ownership over what you are doing and what will be your company's future. Personally I have seen situations in some towns near Bogotá, where the same political leaders (councilors, mayors and even candidates for ombudsmen) generate expectations of 'train firm' with future voters and organize groups with no other selection process that the geographical and expose people to danger mentioned. I've also seen UMATA Directors who do not know how to motivate people from one company to work in a business in which the same members do not know, but technically, the best.
I have full confidence that some problems would be solved if people who have a project in the 'head' communicate their thoughts. But sometimes there is no time for it or there is nobody who knows how will the company in 3 years. The questions remaining in the air:
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"The council, which makes policy to be elected Mayor in the next period, knows how to handle a company that has been created to vote for him?
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Do the directors and technicians of a UMATA or other support agencies may have the power of management, vision and adequate time to achieve the business development of a group that formed under sometimes intangible parameters?
* How far will the support is intended to give that company?
* Do all the actors involved in the process think in the same way on the development of the company?
* Do people who come together around a certain productive projects are best suited to develop this activity?
* Do these people really want to be that company or is physically inactivity and other opportunities are making there?
* Do members understand each other or permanent generators are conflicts? Indeed there
huge gulf that are not taken into account when forming a company, but no can stop the development of our rural life. What must change, in my opinion, is how these processes are focused and getting out is possible that the peasant self-aware and trained, not only from the technical standpoint to handle your project, but also to manage their 'leaders' and subordinates with personal growth training or development human is also important that people who work together let them be themselves, to render the group is able to meet leadership goals, both personal and collective, that members may take place to talk in front of their neighbors or the President of the Republic.
From a purely technical point of view the constitution of a company requires an extensive process of analysis, reflection and planning, which involves examining all the areas involved and influence the development of the company. This assumption is valid for founding a company in any industry.
So what is the difference between the agricultural sector? In this field should variables considered more difficult to control risk in any kind of gold company and that is where lies much of the success or failure of the activity undertaken, therefore, these variables require special care to study them. Here it is important to distinguish within the sector which means the agricultural development and livestock and agriculture in the case of short-cycle crops or late performance, and that because it was different sub-concepts vary fixed investment, capital labor, inventory, among others.
addition to these considerations, there is another aspect to be defined: If the business you want create is a producer, processors, traders, or performing all three activities. This is certainly a key element when evaluating the factors of production and doing financial assessments.
Along with these issues, it must address the question: What product? Today it says that it is first necessary to look at the client, which requires it first and then solve the problem of how to produce. This indicates that the starting point is the market. To meet the challenge, it is prudent to start with a survey of needs and demands on national or international level, enabling real boost business opportunities.
This approach can be done by review of secondary information, the statistical analysis of national and international. However, it should be noted that the Colombian agricultural sector is just beginning the process of training, integration and consolidation of information sources that can serve as a starting point for making investment decisions. Corporación Colombia Internacional, with the operation of Sipsa and SIESA assembly and Marketing Information System is contributing to the formation of that culture. Once identified
products with market potential, the next step is to initiate a feasibility study to determine if viability to advance economic and technical projects. This means deepening the market assessment, define the technical and production aspects, consider the problem of sizing and location of the 'production unit' and make the financial assessment.
* Market Research: An assessment on the most accurate market which is meant to guide the project. It is also crucial to know the product, features and more relevant categories, different varieties or types, to establish the demand and supply in different markets under the same conditions, calculate the apparent consumption of a market and its fluctuations and define the seasonality and harvest times and also watch the price behavior and their association with different distribution channels.
competition deserves special consideration. It is helpful to determine what are the strengths and weaknesses that the company will face, where does the competition. It is also important to take into account issues such as tariffs, quality standards and plant factors.
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Technical Aspects and Production: At this point we must consider the factors which affect agricultural and livestock development, characteristics and constraints of the activities to be undertaken, technology and production processes that are expected to use in the field and / or processing, according to the product being marketed. It must describe and define how it will effect the development in time (activity schedule), what procedures, what yields to be obtained and what are the input requirements, personnel, infrastructure, machinery and equipment to be used.
Also relevant is the logistics process design must meet the product to the consumer, the concept of just in time, with quality equal or superior jurisdiction, within a framework of profitability for the producer. Should however be on infrastructure, transport equipment, costs, distances and transit times, load driving conditions, perishability, volume, frequency of office equipment needs in both origin and destination and availability of staff. It should be noted, as a strategic issue in the present, everything related to the environment. The type of activity, the processes used in production, the location of the company, etc. Must comply with existing legal regulations for areas and products. Similarly, investments should not be neglected for proper environmental management.
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Sizing and Location: To define the size of the company must be based on market potential and technical feasibility, taking into account that for certain processes there is a minimum package installed capacity, in many cases decisive aspect of the project's profitability. It is important to assess whether there are significant advantages of economies of scale and dimension combine with available resources. For the location should consider the existence of agricultural land and economically appropriate, its location opposite the target market and the provision of inputs and services. It is wise to compare between areas having agronomic conditions, which has better infrastructure facilities and access to places where they are expected to market the product.
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Financial Study: With the knowledge gained in the previous sections we proceed to make the financial assessment, from the identification of the required investment, revenue projection, cost structure and financing plan. A sensitivity analysis of the project to changes in their main variables producing valuable information for decision making. It is common then make the projection of the Project Financial Statements (Profit and Loss, Cash Flow and Balance Sheet), which include the variables of production, sales and cost of sales, fixed investment and working capital needs in projection horizon that depend on the activity of the company to undertake development of the economic and other components. Also deserve attention
tax issues, current regulations, funding sources and eligibility requirements for financial credits. A subject of care is dealing with security. The sector's risk conditions are that they are valued to a lesser extent by financial institutions and, in some cases are not accepted as collateral.
One factor that has been controversial is whether the accounts are in constant or current dollars. Why and how often should one or other basis of projection? How an investment initiative is affected by macroeconomic variables that are beyond the control of the company, impacting the financial plans, dividend policy and value for investors? What is the impact on the competitiveness of export-oriented projects, address the conditions of firms from other countries?
Even if you have completed the previous stages, no guarantee that the company is successful, but key aspects have been covered to eliminate uncertainty, to make the risk that is inherent in every business and thus seeks compensation for investment, probably more than that produced by 'investing' their money in a security of a financial institution.
Finally, it should be noted that starting a business requires a serious process, technical and thorough, which implies a prior investment in resources and time, whose fruit is expected to be a profitable business. You can not ignore the commitment and responsibility that come with shareholders, who finance institutions, suppliers, with employees and the region in which it is established. More so in the Colombian agricultural sector for their current situation, in which negative experiences produce an unfavorable climate for new investment proposals. "
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