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I have gotten a lot of questions from people who want to go into agriculture about which is better to start with, investing in agritech companies or starting an agriculture business? And I ask them, what do you WANT?
They keep stammering and I could see they don’t have a plan and don’t know what they want to get themselves into.
Are you in this situation? Don’t worry, I got you. In this article, I will help you make a better decision about which you should venture into especially as a beginner.
You want to have a piece of the agriculture cake but maybe you’re scared, or you just want to manage your risk, at the end of this article you will find a position where you belong.
What is An Agritech Company?
An agritech company is a company that leverages technology to bring agricultural opportunities to people in the comfort of their homes.
Just like the name, it is “Agriculture and Technology”. I have an article on agritech companies and how you can start, you can read it HERE, so I won’t go deep into it in this article.
Starting An Agriculture Business
Starting an agriculture business is trying to venture into your own business, that is, buying land, setting up a farm, and doing the necessary that it takes to start a farm. This type of agriculture could be livestock or crop farming. In simple words, it is you getting actively involved in the agriculture business yourself.
Now you know the definition of agritech company and starting your own agriculture business, you want to make a decision, what should you out for before making a decision.
Investing in Agritech companies or Starting an Agriculture business
The first factor you need to consider when making a decision is the capital involved.
Is it cheaper investing in agritech companies or expensive to run your own business? Well, it is left to you.
But when you consider investing in agritech companies, you look at different options that you have, do your research, look at opportunities available on these different platforms, and put your money.
The amount you invest on these platforms is a personal choice that you have to make.
If you are to start your agriculture business, no matter how small it is, it is not cheap.
For example, imagine you want to start a catfish farm, there are things you will buy which don’t come easy. You will buy land, fish, pond, etc, depending on the aspect of the catfish business you want to venture into.
So, putting all these costs together, it might not be easy to get this money if you’re prepared for it.
So, if you are a beginner that wants to make money from agriculture but doesn’t have much money on you to invest, I will personally say invest in an agritech company.
The next factor to consider when making a decision whether to invest in agritech companies or start an agriculture business is the risks involved.
There is no business under the earth that doesn’t have its own risks. Depending on your risk appetite, your interest in the agriculture business, in general, will make you decide what you want for yourself.
Investing in agritech companies is less risky than starting your own agricultural business. Not only that, if you’re to invest in any agritech companies (after doing your research of course), your risk is being managed and your investment is insured by companies in Nigeria.
To some certain point, your money is safe no matter the amount you put into it (this doesn’t mean you cannot lose your investment).
If you decide to start your own agriculture business, the risks involved are very high, although this depends on which type of agricultural business you want to start.
There are different challenges you will face when running your own business in agriculture but if it is something you are not scared of, then you can jump into it.
If you’re someone that can’t take risks, I will simply advise you just invest in agritech companies that will manage your risk and also insure your investments for as long as you want to keep going.
Control And Management
The third but not final factor to consider when making a decision in either investing or starting an agriculture business is control and management.
Are you someone that likes to be in control of things or do you just want to sit back and watch things unfold?
If you are someone that wants to be in control of things, then investing in agritech companies is not for you. WHY? They are in absolute control and management of your money, you don’t have a say on things at all, even if you are sure they are cheating you or they are ripping you off by giving you a small percentage in returns.
I have seen and heard people complain about the percentage of returns on investment they are being disbursed at the end of an investment cycle, and I tell them, there is little you can do because they put everything on the line to bring you an investment option and if everything goes sour, they will be the one to pay for it without your knowledge.
So give them some slack and enjoy whatever percentage they give you.
Starting an agricultural business by yourself gives you total control and management over everything you have.
Whatever you do with the profit you make from your business at the end of your production cycle is all yours.
You can decide you spend it all (I won’t advise that) or reinvest it back into the business. You have 100% right to your decisions (except you have a partner or run a family business), no one will question you.
Whatever you decide to venture into at the end of the day is on you. But as the professional that I am, I will say you should go through this article several times, write down your goals, why you want to do whatever it is, and make your decisions.
If you want to just be on a low key, make money every now and then without panic or going through the books, I will say you just invest in any agritech platforms around and make cool cash no matter how small it is.
But if you want to be the big boy in the agriculture sector and get your hands dirty, then pick one from the different agricultural opportunities and start. Make mistakes, learn from them and continue making money.
No matter your decision, it will still be a win-win situation, the goal will be met which is making money.