How to Finance Your Poultry Farming Business in Kenya

Over the years of running my Agribusiness and interacting with other business owners / aspiring entrepreneurs, I have come to understand the fact that raising capital will remain the most challenging task for an entrepreneur.

You may have the most brilliant idea in the world, or you have mapped out a formidable expansion plan for your existing business; however, if you cannot raise the needed funds to pursue these ideas or plans, nothing will ever get done.

There are three components to starting an agribusiness. One is the right plan; two is the right team and three is the money. Rarely do these three components come together when starting a business. It’s the duty of an entrepreneur to grab one piece and start the business, the remaining two pieces will be found along the way. Finding the remaining two components may take a year or more than a year; the point is, start with what you have.

Getting funds to start a new business (or expand an existing one) is one of the most difficult challenges you can ever face as an entrepreneur. This is because most of the widely known sources of funding (such as bank loans and venture capital) are highly competitive; running after them is like racing with many other cars on an extremely crowded highway. That is, many businesses, both small and big are fighting hard to get funds from these same sources.

Now, I am not saying you cannot get bank loans or venture capital. But the bitter truth is, you will most likely have to fight through all the clutter for several weeks to months just to get your voice heard. Moreover, your poultry business may not be ripe for these funds, as they are usually reserved for companies that have already reached certain milestones. Yet, only with the needed funds can your business reach those milestones.

Preparing Yourself for the Challenges of Raising Capital

Raising capital for your startup or funds for your small business expansion plans is no doubt one of the most challenging aspects of starting or growing a business. This is why you must be adequately prepared for the task.

Seriously, raising money for your poultry business is not a piece of cake; as you almost have to practically beg and convince potential investors or lenders to trust you with their hard earned money. There are more-than-countable stories of entrepreneurs and small business owners becoming discouraged and frustrated by the harsh challenges they are faced with while trying to raise funds for their businesses.

These challenges include the amount of time it takes to secure the required funds, the crippling terms and conditions, the paper work involved, the rejections, and the lack of linearity and progress checkpoints over the course of the fund raising process. Now, let us go into more detail on some of the commonest challenges entrepreneurs face during the fund raising process.

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