Corporate Farming: Investment Opportunities
About 10,000 years ago, historians say, man began to domesticate grain yielding plants and settled down. Thus, agriculture is considered as the oldest of enterprises. It has undergone very many changes particularly in the last 100 years. Over the last century, technology has played the key role in restructuring agriculture and elevating it to the status of a modern, corporate business entity from what it was since the time of the earliest cultivation – the primary industry. Modern agricultural technology encouraged the participation of corporations in agriculture by bringing in investments, scale of economy and efficiency in resource use. Many believe that corporate farming destroys family farms because of the perceived effects on the rural agrarian economy. On the contrary, the proponents of corporate farming argue that corporatized agriculture leads to more efficient production and more social benefits. The numbers however speak for themselves. Since 1920s the number of farms in the U.S. has steadily dropped from around 6.5 million to 2 million. Similarly the proportion of population that lived on farms came down from 30 per cent to under 2 per cent.
Corporate farming: Towards efficient agricultural production
Historically, agriculture has been a family firm structure. This is due to interdependence of certain operations of farming with others and their interplay and seasonality. This, to a great extent, limited its ability to specialize and promote efficiency. In the past three decades or so, there is a surge of corporate influence on farming. The family farms mostly carried out their businesses locally- procuring inputs and selling their produce from the local markets. Corporate farms procure their inputs and source their working capital from large suppliers at huge discounts. Corporate farms can also access most modern technology and vertically integrate the entire process of production, value addition and marketing. When economies move from businesses that are dependent on natural cycles to those that are independent on such cycles, factory-style corporate industry will take hold of most businesses. Agriculture is not an exception to this. For instance, livestock farmers have been able to earn steady returns as the production technology improved and drastically reduced dependence of livestock production on nature. This makes livestock farming a perfect investment option for corporations. The ability of corporate sector to extract the benefits of economies of scale by way of minimizing input costs and maximizing output while leveraging technology to keep the risks under check, makes corporate farming a good business sense.
Corporate farming: Road ahead
In the globalized economy corporate farming is better equipped to bring out the farm products at the right time, place, quality and price to meet the consumer demand. Traditional family farms would certainly have difficulty in responding to the global market. Keeping in view the role of nature in the current state of grain farming technologies, there are still many negative externalities for corporations to enter this sector unlike livestock sector. Once the technologies enable corporate farms to ensure gains outweighing externalities, which is very likely in the near future, corporate farming will offer huge investment opportunities.
Franchising Explained
One of three business strategies that businesses can use to get a market share is called franchising. This is a specific business strategy to get and keep your customers. It is a way to market your products and services so that your customers can visualize how they will benefit from purchasing from you. Franchising involves a network of business relationships which are interdependent, allowing a number of people to share in things such as brand identification, a proven marketing and distribution system and a successful method of running a business.
Franchising means that groups of people with the same goals and responsibilities in relation to dominating the markets form an alliance. The relationship of a franchise is a business relationship which is a joint commitment by all of the members, or franchisees. Their main goal is to get more customers than anyone else in the same type of business.
Many people don’t truly understand what a franchise is. The biggest misconception is that when you are a franchisee you are buying a franchise. Actually, it is an investment you are making into a system to use the operating system, brand name and ongoing support. Everyone involved in the same system are licensed to use it and the brand name.
If you want to be successful in your franchise, you must understand all aspects of the business itself and also the legal aspects of your relationship with the other franchisees and the franchise owner. You must be focused on working with the franchisees and company managers so you can successfully market your brand. If you acquire an ownership mentality, it will ruin your success. Working together with the other people in your business circle is where your success lies. They can help you with your shared responsibilities of operating the business and experienced franchisees can give you advice you need when you are just starting out.
Other reasons to avoid the ownership mentality are because if you think you bought the franchise, and begin thinking like an owner instead of a franchisee, you’ll start to act that way as well. You’ll want to change the system according to your needs and wonder what you are paying royalties for. Plus, you will see the other franchisees as your competitors instead of your team mates.
You own the assets of your company when you are a franchisee, but remember, you are still licensed to run another person’s proven business system.
Funding your Business with Help from the U.S.A Government
Give Your Business a Kick Start – Funding your Business with Help from the U.S.A Government
Where to Start?
Finding the sources to give a kick start to an established venture, start-up or idea can seem challenging. The U.S government is a great place to get your plans moving. Sources that are available include grants, solicitations, challenges, training, international trade loans and SBA loans. After a good business plan has been established, obtaining seed money for your venture can become a smoother and easier process.
SBA Loans
Traditional loan sources may be a choice that many ventures seek to obtain but many experience unapproved or less than desirable results from this path. The SBA is a great place to start to get everything moving into the right direction financially. To obtain a loan from this source the first step should be to visit their website or visit a local center. There are several loans and opportunities the SBA can help you become qualified for and obtain.
Grants
Grants can be obtained also. Put your writing skills into action or hire a professional to apply. There are numerous opportunities for those seeking seed money for their new or existing ventures. Obtaining grants can be a challenging process but with proper preparation or seeking help from SCORE to mentor you through the process, gaining the funding need can be easier and more successful.
Training
Training can help to elevate your efforts to obtain the financial means to get your business moving in the right direction. Knowing what to do and how to obtain seed money, can arm you with the expertise to make your efforts soar to the top. Many government training program are available to help you gain the knowledge needed to be successful financially. To obtain funds for your business, having a trained arsenal of information that works will help you excel.