Scaling up-Are you really ready? (part 2)


 Dear Farmer,

 

 As always I am happy to answer your questions and offer thoughts on all things Agribusiness and Leadership related. In a Agribusiness Needs Assessment survey I carried out in July 2023, expansion was the highest priority at 61.8%  and I know you are also thinking about it. In the last letter I touched on some key components such as Vision Casting, Personal Leadership and Management skills that you need to think about as you deliberate on whether you are ready to expand/scale your business and  as promised I will finish on the remaining components namely Organisational Culture, Human Capital, Product Demand Financing, Infrastructure and Relationship Management.

 

Organisational Culture

Organisational Culture refers to your team’s attitudes, beliefs and norms of behavior. If this is toxic it will hinder your growth and throwing money at it like I have seen others do will not change much in the long term. World trends indicate that employees are actively considering organisational culture before joining an organisation and this will determine whether you can attract, keep and derive value from top talent. Psssssssst..… top talent aka A Players are what you need for sustainable expansion.

 

How would you describe the culture of your organisation? Its values, beliefs and behavioral norms? Is that the same description your team would come up with? Does this culture support innovation, psychological safety, team work, growth? Are you and your team on the same page on what is expected of them and the intended destination?

 

Human Capital

Do you and your team have the requisite Technical Knowledge, Skills and Abilities to drive this expansion? What plans are in place to develop these areas? Studies show that a deliberate plan for Human Capital Development that involves coaching can boost productivity by 44%

 

 

Product Demand

I know you have had much success in your current market and congratulations for the work done well. Is  the increased demand consistent? Will it remain this way for the foreseeable future or it has been triggered by a specific event? Are there any other ways to generate demand in other markets? Are there any other processes to your product that can add value and generate demand for the ‘new’ product? If you are a farmer do you have an alternative market should things not work out in the new market?

 

 Financing

Agribusiness owners in Zimbabwe of every size list Financing among their top challenges and I bet you are not an exception. What will be the financial requirements for your desired expansion, what are the sources of funding that you can access, do you have the requisite paperwork, systems and relationships? What are the sources of alternative financing, at what cost, what is the fine print that you must understand? When will it be needed and for what? What is the exit strategy if things do not go according to plan?

 

Infrastructure

This refers to equipment, space and systems that you need to activate, upgrade or acquire as part of the expansion program. Do you need to redesign your workspace to cater for more team members or processes? Are there any additional regulatory and statutory requirements that you need to know about?

 

Relationship Management

Who do you need at the table? How do you gain and maintain access to them? As the old African adage goes- ‘If you want to go fast go alone but if you want to go far, go with others’

 

I have seen and heard the stories from many who expanded their operations but couldn’t sustain the success, you know some of them. The money and  the market was  available but they weren’t deliberate about this process. You do not have to be one of them.

 

 

Yours

Rutendo

 

 

Rutendo Yolanda Chibanda is an Agribusiness and Leadership Development Facilitator. Transforming Mindsets, Equipping Leaders, Building Businesses through inspiring conversations and technical Interventions. Get in touch on +263783187243, email rutendochibanda04@gmail.com. Follow her on LinkedIn- rutendoyolandachibanda

 

 

 

 

 

 

 

 

 

 

 

 

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