After learning to save money, there can be a great leap in the profit margin of every business. This is a super power every agribusiness owner must possess and harness since every business is started with the aim of growth and making profit.

Even those started as hobbies; for the fun of it end up needing capitalization and monetization. Saving money is one of the most important metrics for business growth without which impending failure is guaranteed.

Unfortunately the ever-fluctuating economies and unseen circumstances cause business ups and downs.  Without precaution, a new business, or a very up performing agribusiness can fail even before you know it. Besides capital is hard to come by nowadays even from family members and friends.

Banks also have very exorbitant loan interests which make payments hard and upon absolute default, one can lose their assets in case of unlimited liability.

The business owner therefore has to effectively maximize the capital and scale the economies well to ensure that the business stays afloat with precedent steady growth.

Advantages of saving money in agribusiness

 Saving money greatly assures agribusiness growth. Enterprises should therefore employ strategies that minimize expenses and keep the money within. The saved money can be used;

1. As capital to boast agribusiness growth by purchasing more merchandise for sale.
2.  To expand business space; land, buildings, renovations.
3. To upgrade business systems like purchase software and latest technology.
4. To increase staff and boast business operations to a wider scope for example region wide or country wide.
5.  To buy business operation equipment like machines, vehicles
6. To employ specialists and consultants for specific business needs.
7. To prevent bankruptcy and keep business going during unseen circumstances and rainy days like economic disruptions or business hazards.

It’s therefore very imperative to save money from day one to prepare for the worst and to use the savings to grow the business.

15 easy ways to save money for quick profit maximization in your agribusiness

Here is the list of the best and easy ways to save money fast and maximize great profits in your agribusiness.

1.Buy in bulk.

For perishable goods, this isn’t advisable, buy only that which can sell out depending on the needs of the market as not to make losses but for other goods, this is very advisable especially when prices are very low and the goods can be sold at a later profit.

Bulk purchases also come with discounts and even free transport costs at times which helps reduce on the operational costs which helps to save money.

2.Preserve goods to stay longer

Preserve goods to make sure they stay long through value addition, packaging, freezing, vacuum sealing and simple processing. The goods should also be stashed and orderly arranged in clean storage facilities.

Proper storage management practices should also be employed like; control of pests and vermin, record keeping, contamination control, weather proofing and dryness. Urban farming businesses like farm fresh stores and vertical farms which sell fresh produce should take this seriously.

Keeping goods in good condition helps prevent loses that result from wastage and selling goods cheaply after they’ve gone bad.

3.Use the FIFO principle.

The first in first out (FIFO) principle is where earlier purchased goods are sold before the newly purchased ones. This   helps to ensure that goods are sold before they expire by making sure that earlier purchased goods are out of the store before the recently bought ones.

The store manager should also ensure this in goods arrangement by stacking the new goods at the back and bringing the old ones at the front depending on the purchase cycle.

This helps to save money by ensuring that goods are sold before they expire thus preventing loses. It also eases accountability and management by selling merchandise and inventory depending on purchase cycles.

4.Cut back on bad suppliers

The goods once sold are not returnable comes in as a disaster after purchasing poor quality goods from bad suppliers. Some suppliers may want to do away with damaged goods and transfer the loss to the buyers by selling it to them. 

They may even employ cunning or offer attractive rates to entice people into taking the goods. This is a total loss as they will go a begging and seller will have to do much convincing to customers so that they can buy them.

On the other hand a business may lose on good customers if these goods are sold to them. Always check on the quality of the produce before purchase or even paying half on purchase and give full payment after the goods are entirely sold.

5.Do away with bad employees.

If someone doesn’t add value to the business then they become a liability. Money that runs the business doesn’t rain from heaven. It’s worked for and grown daily through operations and sales.

It’s always imperative to employ hardworking efficient people who will bring good returns to the business and actually do their work instead of desultering around and chewing money.

6. Do book keeping

Knowing the inputs, expenditures, liabilities of the business can help keep it afloat especially when everything is documented. This helps determine the setbacks of the business, improve strengths and set strategies that promote growth.

Most agribusinesses don’t do that especially sole proprietorships and family owned businesses.

There are a number of tools and software platforms like QuickBooks, and slick pie which actually help to simplify the process by automating business transactions. With these one can keep track of their business inventory on the go with their mobile devices.

 It is also advisable to employ the services of an experienced professional auditor to help give a current standing of the business and project future business growth. Auditors also advise on taxes to prevent paying high rates even when business is slow.

7. Do partnerships, vertical and horizontal integration

These help to ease marketing ensuring that goods are consumed as soon as they get in. On a vertical basis, a business like a wholesale grocery store can partner with farmers who bring goods to his store and who in turn sells the goods to food processing factories he’d partnered with.

On a horizontal basis, he can partner with fellow grocery stores to help them form a union thus helping them market their goods and put their interests forward. Integrations also help to keep market prices uniform as people in the chain can unanimously agree to sell their goods at a certain price and maximize profits depending on the seasons, economic fluctuations and the forces of demand and supply.

8. Save part of your monthly profits in a bank or Sacco

Having a fixed deposit savings account may not be a bad idea as these come with good interest per annum. Agribusinesses with good savings goals and dreams can take advantage of this to save money fast and grow their businesses.

 Saccos also offer loans to members at very low interest rates and these can be used to boast the business.

9.Make use of government and other NGO bodies offers

Tax holidays, inputs and interest free loans are sometimes offered by these bodies and they are something you don’t want to miss out on especially for the youth.

Though in most cases they require valid partnerships or registered businesses but these can save your established business big time especially if it is crumbling already.

Grants are also offered by these bodies for startups and businesses that are in line with their goals especially those that promote sustainable and economic development.

10. Make use of seasonal goods

It’s too bad if one deals in a particular type of merchandise and they are too rigid as not to veer into other things for a while. The advantage of seasonal goods is that they are on high demand during that time and there is ready market since everyone wants to get their hands on them.

This means that there are quick returns on whatever you put in. For example: Christmas trees, turkeys during Thanks giving, beer during the Oktoberfest, Eggs during Easter, Sheep and cattle during Eid and chicken all year round lol.

11.Add value by doing simple processing

This helps to avoid loses by preventing products from going bad especially perishables. Whereas selling raw unprocessed goods is a total loss, having a big batch of them go rancid is a big disaster.

 Processing maize into flour, smoking fish, making juice out of those soon to go bad fruits, making animal feed from the waste restaurant food, packaging those nuts can curb losses greatly while maximizing profits as value added goods are very appealing and always go for higher prices.

12.Improve your marketing, sales and negotiation skills

To market is to buy a big fat pig. Improved marketing and sales results in flowing business since the products are delivered to target customers who actually need them, people buy more, profits rise and the business booms.

 Having a good marketing and sales team or employing the services the services of a consultant is a short cut that can save money and time wasted in beating about the bush instead of delivering products and services to the right people.

13.Make a strict budget and follow it.

Prior planning for future expenses can come in handy when it comes to saving money on a tight budget.

 Knowing where the money is going and sticking to that plan can help eliminate unnecessary spending.

The budget can also help one to foresee and do risk analysis. This can be done by anyone be it a small businesses but for large firms, one may need to hire an accountant. Accounting software like QuickBooks also help with budgeting

14. Recycle, Reuse, Reduce

Recycle and reuse some of the would be waste in agribusiness for example paper can be made into packaging bags to help reduce costs. you can also do value addition to make the would be wastes into new marketable products.

15. Automate some of the business activities

It’s no joke that technology has made most of the work easier nowadays. Tasks that required much labor and time can be done by machines efficiently and effectively in no time. so having a good machine around is advantageous after all.

Some may be costly but the returns are worth it. The cost usually depends on the task and how much work is to be done.

There are so many reasons for businesses to save money and strategies that can be employed to do so. Please let me know what you think in the comments.