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Have you ever failed flat in business?
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Chaka
#101 Posted : Tuesday, October 11, 2016 1:47:10 PM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
@Bigchick

I am wondering about the following:
1.Did she borrow 800k and this has now balloned to 859k?
2.Was she a first timer?If so it would have been advisable to engage an agronomist to see her through to harvest.
3.What acreage has she planted the melons?
If it is large and the harvest was successful,then it would be better for her to get buyers(by the truckload) to come to the farm and then she sells at farmgate price.thus she would not need to have a sales outlet.
4.Has the irrigation been done on the entire 10 acres?If so,she can sub-lease some of it and use the proceeds to offset some of the loan?She can join a number of FB groups which can help in this regard.
5.In any business,it is always wise to start small..
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  | | Edit by user: Tuesday, October 11, 2016 3:06 PM | Reason: Not specified
shadowinvestor
#102 Posted : Tuesday, October 11, 2016 2:27:56 PM
Rank: Member

Joined: 1/13/2012
Posts: 139
@Big Chick, this is a dicy one, there is no crop i think the only offer here is sub lease the land to cover the extra 59k and let the FD be liquidated, thus no loan and from there she can think clearly on way forward. Is she a good farmer- has she farmed before?
If she set up the infrastructure properly she should leverage this to a Big farmer, a few months ago this would have been an fantastic opportunity but now I have already set up farming.


sparkly wrote:
Bigchick wrote:
sparkly wrote:
Bigchick wrote:
watesh wrote:
Bigchick wrote:
Looking for help/advice for a friend.

Her story.

She is came back from Europe and deposited 800k in the brown bank and borrowed against it and went in agriculture(growing melons)The agri loan was to be paid in one bullet payment upon sale of the melons.It did not work as planned.Melons she grew as planned and sales have been there but her costs seem high too.So the loan has not been paid and time is up.

She is now at ground zero.How can she pick up?
Her passion is agriculture and she has a 10 acre leased land.

What are the components of the high costs? Once we know that we get to know if they are fixed costs or variable costs



They are abit of both

Fixed costs include Wages at the farm,Irrigation of the plants,Rent for her sales store and other maintainance costs of the crop.

Variable ones include transport to clients,brokers fees to mention but afew.

My key concern right now is that she is flat on the ground.No money to go on and the bank will liquidate her FD. The land is there but seeds and other inputs for the next crop hakuna.What next.....


Deposited 800k and borrowed against ... Investing the 800k would have been a better idea to start with then borrow to grow.

Nevertheless all is not lost. try:

1. Restructure/ extend loan repayment period. the loan. Interest will be lower than previous due to rate cap.
2. Get someone to inject equity investment, use proceeds to pay loan and for working capital.
3. If all fails, liquidate the FD, pay loan and put balance on the working capital.



Option 1 failed.The bank said no to extention.That the terms are very clear on agri loans

Option 2 is sounds good.Where can such a person be found.She is willing to discuss.The land is not hers but she has a 10 year lease and she develpoed the infrastructure.....water system for irrigation etc.

Option 3 is inevitable as that is what will happen come 30th October and she has not paid up the loan.Unfotunately she will have no balance as the same is outstanding at 859K while her FD is 800k

So if you know of any interested investor send me their contacts.


I have a friend who has always wanted to to invest in agriculture. Where is your friend's farm?
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FRM2011
#103 Posted : Tuesday, October 11, 2016 2:31:07 PM
Rank: Elder

Joined: 11/5/2010
Posts: 2,459
@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.

Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.

She has learnt her lessons and she will make a killing in the second attempt.

My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered.
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Mike Ock
#104 Posted : Tuesday, October 11, 2016 3:12:58 PM
Rank: Member

Joined: 1/22/2015
Posts: 682
See how people are being helpful after fellow wazuans have confessed to failure. The badness is for people to confess to failure in real life is too hard. Everyone claims to be doing booming business for the sake of impressing friends. That's the attitude that ends up sinking you eventually when in reality some helpful friend could have intervened if you were man enough to say the truth
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hamburglar
#105 Posted : Tuesday, October 11, 2016 4:50:07 PM
Rank: Member

Joined: 12/17/2011
Posts: 887
Mike Ock wrote:
See how people are being helpful after fellow wazuans have confessed to failure. The badness is for people to confess to failure in real life is too hard. Everyone claims to be doing booming business for the sake of impressing friends. That's the attitude that ends up sinking you eventually when in reality some helpful friend could have intervened if you were man enough to say the truth


Word.
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alma1
#106 Posted : Tuesday, October 11, 2016 4:57:32 PM
Rank: Elder

Joined: 9/19/2015
Posts: 2,871
Location: hapo
Happening right now to a friend.


Thieves are not good people. Tumeelewana?
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enyands
#107 Posted : Tuesday, October 11, 2016 7:13:44 PM
Rank: Elder

Joined: 12/25/2014
Posts: 2,301
Location: kenya
alma1 wrote:
Happening right now to a friend.





tell him to create tweeter post,attach the video and post it here,kenyatlk.com . The masses will be marshaled and news stations roped in ,It works as magic.Also let aspiring mca of that region roped in too...
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Bigchick
#108 Posted : Wednesday, October 12, 2016 8:13:54 AM
Rank: Elder

Joined: 2/8/2013
Posts: 4,068
Location: At Large.
FRM2011 wrote:
@bigchick, ur friend's predicament isn't that bad actually. Her facility is cash covered and the approval authority rests with her branch manager.

Tell her to engage them. At the very worst, she will "clear" the loan by depositing the outstanding balance and within minutes a new loan will be disbursed with the same security.

She has learnt her lessons and she will make a killing in the second attempt.

My branch manager can authorise a loan of up yo 10m within minutes if it's cash covered.


This is the 1st thing we did. Unfortunatly I think her Branch Manager does not feel her or there os more that I don't know.They were categorical that come end month the loan has to be paid.

The mess is they liquidate her FD clear their loan and she still has a balance of about 59K. She has zero cash right now to proceed with the farming.

Asanteni wote for your ideas.Will share with her and above all link her to that number given up there.
Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
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Bigchick
#109 Posted : Wednesday, October 12, 2016 8:26:02 AM
Rank: Elder

Joined: 2/8/2013
Posts: 4,068
Location: At Large.
Chaka wrote:
@Bigchick

I am wondering about the following:

1.Did she borrow 800k and this has now balloned to 859k?
SHE BORROWED 720K WHICH IS 90% 0F THE FD.AFTER 6 MONTHS SOME KIHIBIRANIA SEEMS TO HAVE HAPPENNED SHE WAS GIVEN ANOTHER 170K WHICH SHE DID NOT ACCESS BUT WAS FEATURED IN HER STATEMENT.SHE HAS BEEN PAYING 17K PM HENCE HER BALANCE OF 859K

2.Was she a first timer?If so it would have been advisable to engage an agronomist to see her through to harvest
YES SHE IS A FIRST TIMER BUT VERY KNOWLEDGEABLE HAVING LEARNT MAJUU.

3.What acreage has she planted the melons?
5ACRES

If it is large and the harvest was successful,then it would be better for her to get buyers(by the truckload) to come to the farm and then she sells at farmgate price.thus she would not need to have a sales outlet.

SHE HAS ORDERS FROM SUPERMARKETS BUT THE SMALL ONES SHE SELLS FROM THE KIBANDA.

4.Has the irrigation been done on the entire 10 acres?If so,she can sub-lease some of it and use the proceeds to offset some of the loan?She can join a number of FB groups which can help in this regard.

NOT SURE ABOUT THE AREA UNDER IRRIGATION.WILL UPDATE HER ON FB ISSUE

5.In any business,it is always wise to start small.



See response in CAPS.ASANTE
Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
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  | | Edit by user: Wednesday, October 12, 2016 8:29 AM | Reason: Not specified
the deal
#110 Posted : Wednesday, October 12, 2016 11:53:15 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
No failure in business...just lessons...I always tell myself...for a business to survive it needs to survive the "learning curve" because no business plan survives the first day. If by the 3rd month you can generate enough revenues to cover 60-70% of your costs then you are good...I have failed several times..factors that can cause a business to fail are too many...from governments, partners, suppliers, hakuna customers, competition...bad products etc....just last month I took a hit of Ksh240,000 because one stupid manufacturer sold me hot air but instead of crying we switched to that manufacturers rival...better pricing, good products..happy customers..keep trying ....my new start up is hot...after several failures I can now say I'm KILLING IT...smile smile smile
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