BUSINESS Management, FINANCE
How to become partners with Accesserator
If you are a Malawian, enthusiastic entrepreneur and you have a great business idea, then we want to work with you!
Accesserator works with Malawian entrepreneurs in partnerships. A partnership means we will own the business together. As a partner Accesserator can provide knowledge, capital and network (assets). For one or more of these assets we provide we want shares in the business in return.
We normally ask for 40% of the shares, meaning yourself will always have the majority of shares. This co-ownership from our side is temporarily, we wil withdraw fully in a 5 years period of time, by selling back our shares to you. We think working in a partnership like this is the best way of starting a business and make it sustainable. And to be clear, we are not a bank, we don't provide loans.
Accesserator is interested in viable and profitable business cases. A business case can be about any subject. Two things are important: a business case must be about adding value and a business case must be able to grow (scale up).
Adding value can be done in many ways. You can buy day old chicks, feed them and sell broilers (or other livestock off course). You can produce vegetables from seeds/seedlings. Make ketchup from tomatoes, or peanut butter from ground nuts. And even produce electricity from the sun. But mostly we are curious about your ideas!
In a business case we will always look for the right way to start. For us a business should start as small as possible to minimize financial risks, but big enough to be able to grow fast and be profitable. We know this requires some good thinking, together we will make it work.
If you want to share your business ideas with us, we are happy to discuss those with you. Before we get into discussion we would like to read your business plan first. That way we can have a good discussion and you will be able to answer questions we will ask. For us, a good business plan explains the subjects in the infographic below. We do have a Business plan format you can use, but feel free to present your case the way you think it's best.
We need a clear insight what your business will be about. What is your dream you want to achieve? How will you start? And what steps will you take next to accomplish your dream?
One method to explain your idea is that of the Value Proposition. So it's not just about the needed infrastructure, it's about explaining what value you can have for whom. And how it's all operated logically. How are all assets contributing to the revenue?
Special interest we have in your market analysis: what are you able to sell? And how will you sell your products? What quantities? Is it on wholesale, retail or even otherwise? For us it's not about what a business can produce, it's about what a business can sell.
We like to know who you are and what you and your staff will be capable of. Introduce yourself and the people that will work in the business, or at least what type of staff you need.
We also like to know the impact of your activities on the surrounding community and environment. Both positive and negative and how you will deal with them.
The businesses in partnerships we have are limited companies. That means the business needs a board of directors. A board of directors will work under mandate of the partners and we want you to be the managing director of this board.
This Organisation model of SME business explains more.
For a good financial planning you need to make a break down of costs and revenues of the determinative items. Costs should be at least distinguished in one time expenditures (at start) and monthly expenditures. Revenues to be presented on monthly basis as well.
One time expenditures are mostly about infrastructure like an animal house or machine. Monthly expenditures are about staff payments, water, electricty and items specifically needed for the business. Like for a piggery: how much does a piglet cost? How much does it eat? How much does feed cost? How much for selling a pig? How many piglets from one sow? Etc.
And all assumptions made to calculate costs and revenues have to be substantiated. Only that way you can tell how profitable a business will be. If you work like this, it's also easier to make a cash flow and have insight in your cash position on monthly basis.
This is what a Financial Planning looks like.
How to make a good livestock case?
How about bringing in collateral?
As a partner we become co-owner of the business, bringing in assets. Accesserator is not a bank. We don't ask for collateral. However we do ask you to bring in assets in the business yourself. For instance the land the business will be located, some already exisiting infrastructure or a vehicle or even cash. Keep in mind that all assets provided to the business will become company property, and don't belong to you personally anymore.
Can I still keep my job next to the business?
No, you can't. We believe that starting a serious business requires full time attention from the entrepreneur starting it. You will be the managing director of the company yourself, dedicating your time. We see your full time effort as an asset you at least have to bring in the business.