The difficult aspect of start an agrovet business in Tanzania is planning. Planning commences by addressing the first economic problem which is what to produce.
This entails that it is in the planning that you address the issue of the type of business to engage in. There are uncountable challenges militating against agrovet operators in Tanzania which makes it difficult for them to meet their targets in the business.
Nevertheless, this does not mean that all agrovet business in Tanzania encounter difficult challenges in transacting their business. If some agrovet businesss owners in Tanzania are successful amidst others, it means there is something extra ordinary they did which the unsuccessful agrovet business owners in Tanzania failed to address.
With the growth of agricultural farming in Tanzania, an agrovet business is a great concept. Due to a shortage of white-collar professions, many people have begun livestock farming, generating a need for animal goods.
11 Tips to Start a Profitable Agrovet Business in Tanzania
1. Research new business names
Coming up with a name for your agrovet business in Tanzania is an important step as it shows the personality of your brand and helps you stand out. Your name should be unique and appeal to your target audience – and it’s your chance to be creative.
It’s also worth understanding:
how to define your brand so you can stand out from your competitors
what you need to do to protect your intellectual property, including any patents and trademarks
If you’re looking for some light-hearted inspiration, try our Business Name Generator to get you started.
2. Consider a suitable location
The location of an agrovet business determines how successful it becomes. Locating your business in the areas that are close to your target customers and locating your business close to people who have made money and name will certainly affect your business negatively.
A wise businessman who wants to be successful will source for an agrovet business close to potential customers that is a little far from the rich men in the business.
An excellent business location for an agrovet should be:
- Accessible by on foot customers
- Secure with adequate storage space for agrovet products
- Near agricultural farms
- Well ventilated and with adequate water supply
3. Choose a legal structure
Next, you’ll need to choose a legal structure for your agrovet business:
sole trader – the simplest business structure, but with no legal distinction between you and your business
partnership – if you’re starting a business with a business partner or partners
limited company – a complex structure with plenty of admin, but your business is legally distinct from you as an individual
If you’re not sure, this guide explains the difference between a sole trader and a limited company.
4. Write your new business plan
A business plan is an important document for a business of any size. It helps you to get an idea of your strategic goals, financials, market research, and potential obstacles.
And as part of any new business strategy, you’ll need to create a budget. The cost to start a agrovet business can vary widely – it depends on things like whether you need to buy specialist equipment, rent a business premises, or if you’re running your business from home.
Have a look at our budget calculator and cash flow forecast guides for help with planning your budget.
Our guide on how to write a business plan has a more complete overview of writing your plan – plus you can download a free business plan template there too.
5. Secure funding and finance
How much money do you need to start an agrovet business in Tanzania? It’ll vary depending on your product or service. But, as mentioned above, you’ll need to think about this question before getting your new venture started.
You might not need much initial investment if you’re starting small.
But if you’ve identified a number of costs in your budget, you should know how you’re going to fund your project. Will you use savings? Or will you ask for help with starting up a new business (for example, loans from friends, family, or a bank)?
Keep in mind you might be able to find grants for new businesses to help lighten the financial burden. The benefit of a small business grant rather than a loan is that you don’t usually have to pay the money back.
Crowdfunding is another innovative source of finance. Plus, if you’re a young person looking to start a business.
6. Agrovet Business Permits and Licenses
To run a legal and profitable agrovet business in Tanzania, you must guarantee that your company adheres to all of the established requirements. To operate a business in Tanzania, you would require the necessary licenses.
- Certificate from the Pest Control and Products Board: Because you will be working with pest control goods, you must get a pest control and products board certificate.
- Tanzania Medicines & Medical Devices Authority: The TMDA certificate is required to ensure that your items are trusted by your consumers. The certificate is only given to firms who offer TMDA -approved items.
- The government is not very interested in checking for the certificate, but it is necessary since certain of your clients may want proof that you are offering permitted items. Display the certificate in a visible location for consumers to view.
- Business license from local government to Conduct Business: The local government requires you to get a single business permit. It is necessary for any firm, and the costs vary from one authority to the next.
- Business name registration with Brela Tanzania
7. Plan your advertising strategy
Now you’ve sorted your finance, it’s time to think about how you’re going to attract customers and grow your agrovet business in Tanzania.
When it comes to advertising agrovet business in Tanzania, you’ll need to consider marketing, branding, and how you’ll balance online and offline promotion.
Here are a few of our top tips:
do competitor research – this helps you understand the market, set your prices, and find a way to stand out
build a social media presence – social media is a great way to showcase your brand’s personality, connect with customers, and even sell your products with tools like Facebook Shops and Instagram
create a website with SEO – optimise your website for search engines so people can find your business and understand the products or service you offer
send emails and newsletters – a simple and cost-effective way to keep in touch with your customers and boost sales
use flyers and print marketing – a tangible way to reach potential customers
network at industry events – get to know your industry and make connections at virtual or in-person events
8. Buy your new business insurance
The type of business insurance you’ll need depends on your agrovet business size. You can tailor your cover and protect yourself from the costs of everyday risks like accidents, damage and legal fees. You can also add specific covers if you need to protect stock or tools.
You can select from a range of covers:
public liability insurance – this is important if customers visit your premises or you carry out work on client sites
professional indemnity insurance – covers you if a client loses money because you provide negligent advice, services or designs
employers liability insurance – this is a legal requirement if you have employees
self-employed health insurance – affordable insurance which can give you quicker access to health professionals
small business health insurance – affordable healthcare cover for you and your employees
9. Work out what you need to do for tax
starting an agrovet business in Tanzania comes with legal and accounting responsibilities, so it’s important you’re clear on what’s involved. There’s tax free allowance, but after that you’re legally required to register with TRA Tanzania
One of the benefits of registering as self-employed is you can claim back some of your expenses and reduce your tax bill. Our guide on self-employed tax deductible expenses goes into more detail on the expenses you can subtract from your business turnover when working out how much tax you need to pay.
10. Create a system for keeping business records
After you’ve worked out what you need to do for tax, it’s important to stay organized so you can meet your tax obligations at various points throughout the tax year.
If you don’t have a record-keeping system, you’ll spend a lot of time sorting paperwork when you have to do your Self Assessment – valuable time that could be spent running your business, or on relaxing and recharging.
Firstly, it’s a good idea to keep your business and personal finances separate. That’s because allowances like tax-deductible expenses can only be for business purposes – it’s much harder to separate money coming in and out when you’re using one account.
What’s more, there’s lots of software available that can make record-keeping much easier. Software can do tasks like create and send invoices automatically, and monitor your income and outgoings:
best CRM Software for small business
Finally, you’re required to keep business records for a number of years. If TRA asks for them, accurate and organized business records can help keep you out of trouble in the event of a tax investigation.
11. Maintain your business with support guides and templates
For more resources on running your business, from conducting a business health check to hiring employees, explore the support guides and templates below.
get a strategic understanding of your business in terms of strengths, weaknesses, opportunities and threats with our free SWOT analysis template
selling goods or services means you’ll need to send clients an invoice so you can be paid
how to calculate turnover for your business
Self Assessment and tax resources
when you’re ready to hire your first employee, download our free contract of employment template
Pro Tips to get the best out of Agrovet Business in Tanzania
Deal on quality products
As a beginner in agrovet business in Tanzania, you need to ensure that all your products or services are of high quality. This will attract customers to come and patronize you whenever they need what you have as they are sure that what you will give them is original.
Reduce your price
Consider selling at a reduced price. This is the most effective form of advertising. Once people are sure you have quality products and sell at a reduced price, they will not only continue to patronize you but will inform their friends and closed once about your agrovet business and price tag.
This does not mean you have to sell below your cost price in order to attract customers but to sell a little lower than others in the same business.
Don’t sell your goods on credit
Most businesses have liquidated because of selling on credit. It is better you have your goods in your agrovet business than to sell on credit and create enmity with your customer while trying to recover your debt. Customers are in the habit of not patronizing you once you offer them credit.
Knowing the right thing to do before establishing an agrovet business is the first step towards succeeding in the business. Tanzanians planning to invest in this type of business are advised to borrow a leaf from the directives above in order to be successful.
Consider opening an online agrovet Shop
Opening or creating a website to sell goods or services online is the norm these days since more and more people are buying online. Setting up an e-commerce clothing store can be a good idea since it can open more ways to sell your products in local directories, search engines and social media platforms were buyers can be easily reached.
Any method you choose to market your agrovet business bet it online or offline, added with goals and good aspirations will surely make it a successful venture.
Starting an agrovet business in Tanzania isn’t for the faint hearted. Although, we seem to have given you a step by step guide but it’s not really as smooth sailing as shown in this article. There are some frustrations along the way.
But the difference between the successful business person and the unsuccessful one is simply – persistence. Don’t give up in the face of adversity, keep at it. Seek advice when you’re stuck in a rut and again – don’t give up.
Now, it’s time to take the first step and execute that great business idea of yours -– Get Started!
Are you starting your own start an agrovet business in Tanzania? Let us know how you get on in the comments.