The document outlines the key topics to be covered in an agribusiness entrepreneurship course, including examining if entrepreneurship is suitable, understanding the challenges of entrepreneurship, preparing a business plan, and explaining the major areas of agribusiness management like planning, organizing, characteristics of entrepreneurs, and types of agribusiness ventures. Students will learn how to assess if they have the traits of a successful entrepreneur, identify common reasons for business failure, and create a comprehensive business plan covering aspects like marketing, finances, operations, and management. The business plan is a crucial tool for entrepreneurs to realistically plan their new agribusiness venture and communicate their vision
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
This presentation is based on course content of agricultural economics department of #IAAS . This presentation is the highlight of course content and reason of studying economics in agriculture.
11 standards of agriculture produces dAshish Hande
Agricultural, Allied Products, Agro Processed Products, its
status in Indian Market. Emerging Issues in the business
Agriculture Produces.
Agriculture Marketing: Concept, Definition, Scope and
Objectives, Upcoming Practices in Agriculture Marketing.
Agribusiness-Emerging Branches, Non Conventional Forms
of Agribusiness, Retailing & Merchandising of Agri
Produces, Export Potential for farm products-Supporting
Services.
Role of Agencies for promotion of Exports of Agri Products,
Role of Agencies for marketing of Agri Products, Standards
of Agriculture Produces, Organized Retailing in Agri Inputs
and Outputs.
Marketing Mix of Agriculture Products, Role of Information
and Communication Technology in Agriculture Marketing.
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
Marketing is the fruit of success in any form of business. Agricultural Marketing is the process of supplying farm inputs to the farmers and the movement of agricultural products from the producer to its ultimate consumer which involves various functions such as buying, selling, packaging, transportation, grading and standardization, storage, processing etc. during this process, there is a chance for some risks and uncertainties to take place. Uncertainty is the unknown factor which causes sudden loss that cannot be predicted and managed where risk is the part of uncertainty which is a known factor that means stepping into a process or technique even-though by knowing that there is a probability of loss. Agricultural marketing experiences three types of risks namely the Physical risk, Price risk and the Institutional risk. The physical risk is the loss in the quantity and quality of the product during storage and transport like fire accident; rodents, pest and disease attack and due to improper packing. The price risk includes the fluctuation in the price of the agricultural marketing; changes in the demand and supply of the product. The institutional risk arises due to the change in the government budget policy; due to the change in the import and export policy. The physical risk can be managed by using fire proof materials in the storage structures, by proper packing and by giving pre-storage treatments. The price risk can be minimized by following contract farming, forward and future market, speculation and hedging. The farmer or trader must have thorough knowledge in the management of risk and should adopt the suitable methods in order to get better outcome in the agricultural marketing.
Lecture 01 Introduction to Production EconomicsB SWAMINATHAN
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
The slides describes the basics of agricultural marketing, its importance, scope with some concepts like market, dimensions of market, market structure, market conduct and market performance.
This presentation is based on course content of agricultural economics department of #IAAS . This presentation is the highlight of course content and reason of studying economics in agriculture.
11 standards of agriculture produces dAshish Hande
Agricultural, Allied Products, Agro Processed Products, its
status in Indian Market. Emerging Issues in the business
Agriculture Produces.
Agriculture Marketing: Concept, Definition, Scope and
Objectives, Upcoming Practices in Agriculture Marketing.
Agribusiness-Emerging Branches, Non Conventional Forms
of Agribusiness, Retailing & Merchandising of Agri
Produces, Export Potential for farm products-Supporting
Services.
Role of Agencies for promotion of Exports of Agri Products,
Role of Agencies for marketing of Agri Products, Standards
of Agriculture Produces, Organized Retailing in Agri Inputs
and Outputs.
Marketing Mix of Agriculture Products, Role of Information
and Communication Technology in Agriculture Marketing.
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
Marketing is the fruit of success in any form of business. Agricultural Marketing is the process of supplying farm inputs to the farmers and the movement of agricultural products from the producer to its ultimate consumer which involves various functions such as buying, selling, packaging, transportation, grading and standardization, storage, processing etc. during this process, there is a chance for some risks and uncertainties to take place. Uncertainty is the unknown factor which causes sudden loss that cannot be predicted and managed where risk is the part of uncertainty which is a known factor that means stepping into a process or technique even-though by knowing that there is a probability of loss. Agricultural marketing experiences three types of risks namely the Physical risk, Price risk and the Institutional risk. The physical risk is the loss in the quantity and quality of the product during storage and transport like fire accident; rodents, pest and disease attack and due to improper packing. The price risk includes the fluctuation in the price of the agricultural marketing; changes in the demand and supply of the product. The institutional risk arises due to the change in the government budget policy; due to the change in the import and export policy. The physical risk can be managed by using fire proof materials in the storage structures, by proper packing and by giving pre-storage treatments. The price risk can be minimized by following contract farming, forward and future market, speculation and hedging. The farmer or trader must have thorough knowledge in the management of risk and should adopt the suitable methods in order to get better outcome in the agricultural marketing.
Lecture 01 Introduction to Production EconomicsB SWAMINATHAN
For undergraduate agricultural students of the course ‘Ag. Econ. 6.4 Farm Management, Production, and Resource Economics (2+1)’ of Junagadh Agricultural University, Gujarat and other State Agricultural Universities in India.
The slides describes the basics of agricultural marketing, its importance, scope with some concepts like market, dimensions of market, market structure, market conduct and market performance.
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2. After completing this lecture, the student
should be able to:
Examine whether entrepreneurship is for you.
Describe the challenges of entrepreneurship.
Prepare a business plan
Explain the five major areas of agribusiness
management
5. Entrepreneur” is a person who accepts all the risks
pertaining to forming and operating a small
business.
“Entrepreneurship” is the process through which
entrepreneurs create and grow enterprises.
Reasons people choose it:
Work for themselves
Set their own hours
Test their own theories
Set prices, determine production levels, control inventory
Solve problems
Set company policy
6. An entrepreneur should first have
knowledge or skill in the area he/she
wants to start a business, but he/she
must also be the following:
Independent, self-confident, energetic,
organized, visionary, persistent, optimistic,
committed, problem solver, self-nurturing,
risk taker, action oriented, flexible,
emotionally stable, and have a sense of
urgency
7. Total Responsibility:
Must manage workers, manufacturing, and shipping
Must find customers, sell the product, and be certain
orders are met
Long, Irregular Hours
Longer hours than working for someone else
Often over 60 hours/week
Financial Risks
Take money to start a business, run a business, and grow
a business
Only half of all small businesses reach a fourth year
8. Failure is usually the result of four factors:
Management (a mismanagement of resources,
people, or products, by failure to fully plan)
Labor (unqualified and/or undependable workers
can cause failure of any business)
Finances (inability to allocate resources, debt,
and taxes can all cause an agribusiness to fail)
Undercapitalization (do not have adequate
startup capital to survive one-to two-year)
9. Prior to starting a business, one must first
recognize a need (type, product, service),
then take into account several factors:
Agribusiness startup factors to consider
What financial resources are needed?
what labor will be required?
what management requirements exist?
does a market exist for this service or product?
where should the business be located?
should an agribusiness be started or purchased?
Applying business fundamentals
Conducting a business survey (market
potential)
10. Size consistent with capital
Devote adequate time
Keep employees fully employed
Maintain an inventory level
Set price – reasonable profit
Buy good-quantity materials at the lowest
price possible
Treat customers and employees fairly
etc
11. Businessman Entrepreneur
Low Risk Taker Moderate Risk Taker
Engages in Business activities for
the purpose of profit to support
his living and his family
Starts venture, assumes leadership
and expands the venture to fulfill
personal goals and attains self
accomplishment
Follow others and invests only in
tested and proven market
Takes circulated Risk
12. Conventional Manager Entrepreneur
Very Conscious of Rules Views rule as guidelines
Sensitive to the future and willing
to postpone reward
Concepts of the future based on
personnel goals.
Low threshold of Frustration
Has a power need for acceptance Ambivalent toward control,
success and responsibility. Can be
manipulative and exploitative
others
Able to identify problems in any
course of action. Makes detailed
plan
Impatient with discussion and
theories. Is prone to action and
seems impulsive
13. Want to start a business?
If so, you have to plan your
business
How to plan?
Write a Business Plan
How to write?
14. Prior to the actual agribusiness, an entrepreneur
must create a business plan.
Def: A written description of a new business that
describes all aspects of the proposed agribusiness.
This plan allows the entrepreneur to be realistic,
honest, detailed, and objective
15. Feasibility
Marketing – Is there a market? How much can you sell?
Management – Does the management team have the skill?
Financial – Can the business make a profit?
Operating plan
Identify opportunities and avoid mistakes
Develop production, administrative, and marketing plans
Create budgets and projections to show financial outcomes
Communicates your idea
Determine the amount and type of financing needed
Forecast profitability and investor return on investment
Forecast cash flow, show liquidity and ability to repay debt
17. Cover Sheet (Business Name, Address, Phone
Number, Principals, Plan Date)
Executive Summary or Statement of Purpose
Table of Contents
◦ Section 1: The Business
◦ Section 2: Financial Data
◦ Section 3: Supporting Documents
18. A. Description of Business
B. Products/Services
C. Market Analysis
D. Marketing Plan
E. Location
F. Competition
G. Management and Operations
H. Personnel
I. Application and Effect of Loan or
Investment
19. A. Projected Financial Statements
Income Statements
Cash Flow Statements
Balance Sheets
Assumptions to Projected Financial Statements
B. Break Even Analysis
C. Sources and Uses of Funds
21. 1. What general type of business is this?
2. What is the status of the business? Start-up,
expansion or take-over?
Start-up: Why will you be successful in this business?, What
is your experience with this type of business?, What will be
special or unique about this business?, Why will your
business be successful?
Take-over: When and by whom was the business founded?,
Why is the owner selling?, How was the purchase price
determined?, What are the current financial conditions and
trends?, How will your management make the business more
profitable?
3. What is the business form? Sole Proprietorship,
Partnership, Corporation or Limited Liability Company?
4. What are your products?
5. Who are (will be) your customers?
22. Age
Sex
Income Level
Education Level
Geographic Location
Occupational Area
Leisure Interests
Buying Habits
Goals and Aspirations
23. 1. What products/services are you (will you be)
selling?
2. What are the features and benefits of what you
sell?
3. What Position do you have (or want to have) in the
market?
4. How do your products/services differ from the
competition?
5. What makes your products unique and desirable?
6. Why do (will) customers buy from you?
24. Questions for Existing Businesses:
1. Who are your current customers? (List largest customers or
categories.)
2. What do they buy from you?
3. Why do they buy from you? (Quality, Price, Reputation, etc.?)
Basic Questions:
1. Who are the purchasers of your products or type
of products?
2. What is the size of the market? Is it growing?
3. What is (will be) your share? How will your share
change over time?
25. Product Strategies
1. How will products be packaged?
2. How broad will your product line be?
3. What new products will you introduce?
4. What Position or Image will you try to develop or reinforce?
Pricing Strategies
1. What will be your pricing strategies? (For example: Premium, Every Day Low Price,
Frequent Sale Prices, Meet Competitor Price, etc.)
2. How will you compare with competition and how will they respond?
3. Why will customers pay your price?
4. What will be your credit policies?
5. Is there anything about your business which insulates you from price
competition?
6. Can you add value and compete on issues other than price?
Promotional Strategies
1. Who are your Target Markets?
2. How will you reach your Target Markets? (What Media will you use?)
3. How will you motivate them to buy? (What Message will you stress?)
4. What is the cost and timetable for implementation of the marketing plan?
26. 1. What is the business address?
2. Is it owned or leased? If leased, what are
the terms?
3. Are renovations or modifications needed,
and what are the costs?
4. Describe the property and the surrounding
area.
5. Why is this a good location for your
business?
27. 1. Who are (will be) your largest competitors?
List them.
2. How will your operation be better (and
worse) than your competitors?
3. How are competitors doing? What are their
sales and profits?
4. (If Start-Up) How will competition respond
to your market entry?
28. 1. What is the business management experience of
the management team?
2. What are the functional areas of the business?
3. Who will be responsible for each functional area?
4. Who reports to whom?
5. What will salaries be?
6. What management resources outside the company
are available?
7. How will your products/services be produced?
(Describe manufacturing processes, proprietary
technology and key supplier relationships.)
29. 1. What are the personnel needs now? In the
future?
2. What skills must they have? What training
will you provide?
3. Are the people you need available?
4. What is their compensation? What fringe
benefits will be provided?
30. 1. What is the total investment required?
2. How will the loan or investment be used?
3. How will the loan or investment make the
business more profitable?
4. When will the loan be repaid?
5. If you are seeking equity (selling part of the business to an
investor):
◦ What percent of the company are you willing to give up?
◦ What rate of return is possible for the investor?
31. 1. Submitting a “rough copy”
2. Outdated historical financial information
3. Unsubstantiated assumptions (be prepared to explain the “why” of every point)
4. Too much “blue sky”
5. A lack of understanding of financial information
6. Lack of specific, detailed strategies
7. No indication that the owner has anything at stake
equity capital invested in the business
8. Unwillingness to personally guarantee any loans
9. Starting the plan with unrealistic loan amounts or terms
10. Too much focus on collateral
7-10: Especially important if the business plan is prepared for a lender
32. The ability to manage is probably the single most
important quality for the entrepreneur.
Management must take place in several areas:
◦ Planning (what, when, where, how)
◦ Organizing (grouping together activities, people, and resources)
◦ Directing (leading by instruction and guidance to employee)
◦ Staffing (recruitment, selection, training, and retention)
◦ Controlling (setting standards, solving problems, monitoring,
communicating)
33. Goals should be set prior to and during
business operations.
These goals can take three forms:
Immediate goals are accomplished daily, weekly, or
monthly.
Short-term goals are set for accomplishment in a year
or two and often lead toward long-term goals.
Long-term goals are set with the future of the
business in mind.