AGRIBUSINESS IDEAS- How to Start Fertilizer Distribution Business
Agriculture and agriculture-related activities contribute to about 75% of the income in rural areas. Fertilizer is a steady business that shows no signs of fading. The growth is mainly driven by the increase in the global population which is increasing the food demand. Fertilizers are extensively being used to improve per hectare production of crops that can be used for food and industrial applications.
If you like the idea of making a profit by helping people work with the soil, you might enjoy being a part of the fertilizer industry by starting fertilizer distribution business. Entrepreneurs can initiate fertilizer distribution business with a proper selection of products from any location.
Here are the 6 Steps to Follow to Start a Fertilizer Distribution Company
1. Research and Plan for Fertilizer Distribution Business
In starting fertilizer distribution business do some research prior. Try to find out the major cash crops of your location. What are the problems farmers are facing? What are the specific products that have already an existing market demand? In addition, what products and services they are lacking from the existing fertilizer distributors. This research will help you to craft a business plan more confidently.
2. Legal Compliance for Fertilizer Distribution Business
As a startup first decide whether you want to run a sole proprietorship . Accordingly, register your firm. In starting fertilizer distribution business apply for a license from the states or local authority in which you plan to do business.
3. Create a Business Plan
Take some time off and write your own business plan for your fertilizer distribution company. Many beginners tend to avoid this step but if you want to really make a successful venture, it is extremely aspect you must go through. A well-written plan will help you to convince investors that your company is worth putting money into. What kind of fertilizer do you want to choose for your distribution business such as chemical or organic fertilizer or both? What will be the geographic region you want to cover? How are you going to compete with established distributors? What will be your promotional strategy?
There are plenty of free business plan templates you can take help from on the internet.
4. Name your Fertilizer Distribution Company
Choose a proper name for your fertilizer distribution business. The name should not be too close ended as it relevancy of the name may find difficulty if you add product ranges in future.
5. Operations of Fertilizer Distribution Business
Find suppliers willing to do business at a suitable price in your area. Obtain quality products at a reasonable price from a reliable source. You can go for import also in the case of bulk purchase. In the fertilizer distribution business, the source you choose will depend on your start-up budget.
Store fertilizers separate from any other component in dry conditions. Extra care needs to be given to keep the floor damp proof. Provide pallets to keep the drums or bags off the floor.
How you distribute your products and deliver your services can affect your cost and your client satisfaction. Arrange appropriate transport facility. Choosing the correct mode of transport means striking a balance between time and budgetary constraints.
6. Promotion of Fertilizer Distribution Business
To make your fertilizer distribution business a profitable venture it requires a strong dealer network. Contact the dealers and retailers in your area and let them know how you will give them a better product at a better price and better schemes than their current distributors.
For more of your agribusiness ideas and solutions ,contact Greenroot ltd . We also have affordable lands at Aburi Amanfo , Asutware Junction and kwaomoso for crop and livestock farming and real estate purposes . Choose any crop or livestock investment options and make over 100% returns on your investment. We give you free site plan and indenture .Agriculture is wealth.