Things That are Capable of Making an Organic Food Growing Company to Fail

When setting up an organic food growing company, it is important for you to appreciate that there is a possibility of the company failing. You can, however, reduce the probability of the venture failing if you understand the things that are capable of making it fail.

One thing that is capable of making an organic food growing company to fail is lack of market for the organic food that is produced. Some people make the mistake of first growing organic food, and then looking for a market for it. They fail to appreciate that marketing these sorts of products is just as hard as growing them. Some people see other organic foods in the markets and mistakenly believe that they will be able to put theirs into the market in a similar manner. They fail to appreciate that some of these niche markets have their ‘owners’ and that it is very hard to find openings in them. It can, for instance, be very hard to find the breakthrough necessary to get your organic food products to be displayed and sold in supermarkets. Actually, it is often said that you shouldn’t plant the crops if you don’t know where and how you will get to sell them.

An organic food growing company can also fail due to technical blunders in the process of growing the said organic food. If you make such technical blunders, your crops may fail, or your yields may be so low that you are unable to break even. The technical side of the process of growing organic food is challenging and you simply can’t take it for granted. Sometimes, you make a blunder in something as simple as the timing of your planting, and you soon find that your crops are unable to be ready in time for the market. Or worse still, you can make such a blunder, and end up with your entire crop being ravaged by the winter. Other blunders with respect to things like applications of manures and selection of crop species to grow can also be quite problematic.

At yet another level, an organic food growing company can fail due to climatic factors. If, for instance, you are attempting to grow organic food using rainfall water, and the rains happen to fail, then your venture will have no chance to succeed. There may also be pests to combat, and the problem with organic food growing is in that when you are faced with pests, you won’t have the chance to combat them using pesticides.

Resources You Need to Have When Setting Up an Organic Food Growing Company

As more and more people become awake to the benefits of eating organic food, there is an opportunity to make money in setting up an organic food growing company. Assuming that you are considering setting up such a company, then you need to appreciate that there are certain resources that you need if at all you are to make the project a reality.

When setting up an organic food growing company, you need land. When we talk of land, we don’t just mean the ground to be used for the project, but also the whole range of natural resources (such as irrigation water) for the project. If you can’t buy these things, then you can at least hire or lease them.

When setting up an organic food growing company, you need labor: in the form of people with technical know-how for this sort of venture. Growing organic food is a unique form of agronomy. Things like fertilizers, herbicides and pesticides used in conventional agriculture are done away with, and that brings about new complications. Thus, just because you know what works with respect to conventional agriculture doesn’t mean that you will know what works with respect to organic food growing. There are unique tricks used to make organic agriculture work, and you need to have intimate knowledge of these.

You also need a bit of capital, when setting up an organic food growing company, to keep it going till it starts being productive. You will know that income generating projects that are set up without adequate capital often fail in their infancy. If you don’t have adequate capital, it is often a better idea to bid your time, and try to raise solid capital, rather than rushing headlong and messing the project up. Capital can be mobilized from savings, by way of borrowing or you can bootstrap (though, as we have alluded, bootstrapping can be a tricky affair).

Finally, when setting up an organic food growing company, you need to have good management skills. People often look down upon management as a factor of production. But it is actually very critical. Even with the best type of land for growing organic food, and even with the best labor force and as much capital as you dream of, you still need good management skills if you are to make the venture a success. Of course, if you lack the requisite management skills, but you have adequate capital, then you can use the capital to hire the people with the required management skills.