When it comes to funding options for startups, new ideas seem to come along every season. Some may be old ideas dressed up in a new way, while a few may be something we really haven't seen before. It isn't certain which ones will become the new black of small business and which will disappear with this year’s hemlines. But here are five financing trends for 2011 that could have an impact on your company.
1. Crowdfunding
Kickstarter popularized the idea of crowdfunding, which is when a large group of people help fund a project or business through a cluster of small donations. Kickstarter began as a new way to help artists get projects off the ground. In return for funding, donors receive goods or services, or even just a well-crafted thank-you, in lieu of equity or interest payments. Now the same idea is spreading to business ventures. Diaspora, a tech company that wants to build a social network to rival Facebook got more than $200,000 in seed money from a Kickstarter campaign
Of course, the Securities and Exchange Commission frowns on companies offering equity to the public without filing with the government to do so, so when it comes to crowdfunding backers always get something other than equity. Take Catwalk Genius. Its members fund fledgling fashion designers and in return get a share of the revenue generated by the designer’s clothing lines. Then, there's Indiegogo, which leans toward creative and tech business ventures, and peerbackers.com, a community of people specifically looking to support entrepreneurs, which are similar to Kickstarter in that they encourage preselling products as a way to raise funds. Look for more niche-oriented crowdfunding sites in 2011.
2. Microlending
The idea of offering very small loans, even just $100, has its roots in helping women in underdeveloped countries start small business ventures. But as the recession tightened credit offerings, the popularity of microlending has extended to the U.S. -- especially as aspiring entrepreneurs are starting ventures with far less than the $50,000 business loan threshold common at many banks. Not-for-profit Accion is the largest organization putting that idea into action with loans that start at $500 and average a little more than $5,000. You can also research other microlending programs around the U.S. through the Association for Enterprise Opportunity's searchable database.
3. Credit Unions
These cooperative financial institutions are among the most active in making smaller loans to entrepreneurs and have only gotten busier in recent years, according to the National Credit Union Administration (NCUA). Its figures show credit unions made more than $33 billion worth of business loans in 2009, up from $12 billion in 2004. They have relatively low default rates and terms that are often better than traditional banks, according to the NCUA and Federal Deposit Insurance Corp. (FDIC). Credit unions also can be a resource for aspiring business owners whose credit score might not pass muster with other banks. The catch? You will likely have to become a member of the credit union to borrow from it.
4. Bootstrapping
If you’ve trimmed your start-up costs down to a few hundred or a couple thousand dollars, why not skip the loan altogether and bootstrap your business? When you tap personal savings, get vendors to front start-up supplies for delayed payment terms, hit up friends and relatives, or use one money-making venture to fund another, then you’re bootstrapping. It’s a good way to test an idea and make sure it has legs before investing heavily in a new venture. Think of it as the business equivalent of going retro. It’s an idea that has been around forever, but is making a big comeback as people who have lost their jobs in the recession increasingly look to start a small business as an alternative to traditional employment.
5. The Slow Money Movement
Woody Tasch, longtime chairman of Investors' Circle, a hugely successful angel network for socially responsible companies, is spearheading this fledgling movement. Its ambitious aim is “a million Americans investing 1% of their assets in local food systems within a decade."
The idea is to help entrepreneurs who buy, use and sell local food or who engage in sustainable agriculture get seed funding from people they know in their communities. The terms are set on a deal-by-deal basis, which can range from a loan to equity to a credit extension. Backers are encouraged to invest in ventures that won’t just turn quick profits but will benefit their communities over the long term by creating jobs, supporting other local businesses and the fostering local food chain.
It’s ambitious and will likely evolve as it goes. But in its early days so was Investors' Circle, which has facilitated over $134 million in investments in more than 200 companies since 1992. We’re interested to see how Tasch will sustain this movement.
Thursday, January 6, 2011
Well fed chicken bring you good income
Indigenous chickens are in high demand. Farmers should rear them on commercial basis.
There is a high potential for indigenous chicken production in Kenya. But the main problem is that majority of farmers do not consider rearing indigenous chickens as a serious occupation. They do it to meet their home consumption needs and rarely on commercial basis. This is a missed chance. Looking at the current market prices for indigenous chicken and even eggs, there is a good reason why farmers should rear them in high numbers for the market.
To start with, indigenous chicken and eggs fetch a higher price in the market than hybrid ones. For example, an indigenous chicken egg goes for a retail price of KSh 15 while a hen or cock can fetch as much as KSh 500 especially during the festive season in December, when they are in short supply due to increased demand from consumers. Therefore, a farmer who wants to get a good return must do correct timing to ensure the chicken are ready at around the Christmas period.
Indeed, indigenous chicken are always in demand across the country. It is therefore easy for farmers to identify a market near them to which they can supply on a regular basis when they start production.
Planning is important
To produce chicken in big volumes and with incubators, a farmer must have adequate knowledge of breeding. Without breeding experience and management, it is very difficult to go into commercial production. If the farmer has identified the right breed of chicken to start with, the next stage is to count the number of eggs the chicken can lay, say in one week. With a rough estimate of eggs, a farmer can be able to know the size of incubator to buy.
Feeding indigenous chicken is a challenge
To be successful, farmers have to identify the source of feeds for their chicken. The feed should be the right quantity and quality for breeders, laying hens and even chicks. With some training, farmers can be able to make their own feeds at home without having to buy from the shops. Although production potential of indigenous chicken is lower than that one of hybrid chickens, they are very good in converting feed into meat and eggs – even in areas with very little feed. It is very easy to increase their egg, meat production and growth through proper feeding.
Feed for all stages of growth
The cheapest way to reduce the cost of feeding is to allow the chicken to go on free range, at the same time providing supplementary feeds that will keep them healthy and productive. Like other animals, poultry requires feeds that give them energy, protein as well as vitamins, minerals and water.
Good poultry production involves proper selection of feed for each of breeds we have mentioned above. For instance, feed for chicken meant for egg production is different in composition from feed for chicken used for meat production. In the same way, feed for chicken meant for breeding purposes is quite different from that meant for both egg and meat production. If farmers want to rear improved breeds of indigenous chicken, then they have to provide adequate feed that is suitable at each growing stage.
These are divided into three categories:
A starter diet or chick mash: This is a high protein feed that is given to chicks, from day old up to 8 weeks. Each chick should eat 2 kg in the 8 weeks.
Growers mash: This contains medium protein. It is offered from 9 weeks up to 18 weeks. Each grower consumes about 18 kg during this period.
Layers mash: This is lower in proteins. It is offered to hens from 19 to 75 weeks. Allow 120 g of feed per bird per day. An egg-laying hen consumes about 45 kg of layers’ mash in a year.
Examples of home-made rations;
Ingredients (%) Chicks Growers Layers
Maize 30 25 35
Wheat 20 25
Wheat bran 10 15
Rice bran 10 10 35
Sunflower cake 10 5
Cotton seed cake 5 10
Soya cake 10
Fish meal 2 2 15
Beans 10 5
Bone meal 1 1
Limestone 0.5 0.5 2
Salt 0.5 0.5 0.5
Mineral premix 1 1 1
Ground dried legume leaves 0.5
100 100 100
Rations for supplementing local chicks;
Ingredient Quantity
1) Crushed maize/sorghum or
millet
1 kg tin
2) Wheat/sorghum or millet bran 1 kg tin
3) Sunflower/ sesame /groundnut
cake
2 match boxes
4) Bonemeal / Salt mix 1 matchbox
5) Fishmeal (omena) 2 matchboxes
6) Sesbania/ leucaena leaves 2 matchboxes
Feed at different ages;
Age Intake (g)
1 week 12-15
2 weeks 15-21
3 weeks 21- 35
4-6 weeks 35-50
7-8 weeks 55-60
16-27 weeks 68-80
28 weeks 100
There is a high potential for indigenous chicken production in Kenya. But the main problem is that majority of farmers do not consider rearing indigenous chickens as a serious occupation. They do it to meet their home consumption needs and rarely on commercial basis. This is a missed chance. Looking at the current market prices for indigenous chicken and even eggs, there is a good reason why farmers should rear them in high numbers for the market.
To start with, indigenous chicken and eggs fetch a higher price in the market than hybrid ones. For example, an indigenous chicken egg goes for a retail price of KSh 15 while a hen or cock can fetch as much as KSh 500 especially during the festive season in December, when they are in short supply due to increased demand from consumers. Therefore, a farmer who wants to get a good return must do correct timing to ensure the chicken are ready at around the Christmas period.
Indeed, indigenous chicken are always in demand across the country. It is therefore easy for farmers to identify a market near them to which they can supply on a regular basis when they start production.
Planning is important
To produce chicken in big volumes and with incubators, a farmer must have adequate knowledge of breeding. Without breeding experience and management, it is very difficult to go into commercial production. If the farmer has identified the right breed of chicken to start with, the next stage is to count the number of eggs the chicken can lay, say in one week. With a rough estimate of eggs, a farmer can be able to know the size of incubator to buy.
Feeding indigenous chicken is a challenge
To be successful, farmers have to identify the source of feeds for their chicken. The feed should be the right quantity and quality for breeders, laying hens and even chicks. With some training, farmers can be able to make their own feeds at home without having to buy from the shops. Although production potential of indigenous chicken is lower than that one of hybrid chickens, they are very good in converting feed into meat and eggs – even in areas with very little feed. It is very easy to increase their egg, meat production and growth through proper feeding.
Feed for all stages of growth
The cheapest way to reduce the cost of feeding is to allow the chicken to go on free range, at the same time providing supplementary feeds that will keep them healthy and productive. Like other animals, poultry requires feeds that give them energy, protein as well as vitamins, minerals and water.
Good poultry production involves proper selection of feed for each of breeds we have mentioned above. For instance, feed for chicken meant for egg production is different in composition from feed for chicken used for meat production. In the same way, feed for chicken meant for breeding purposes is quite different from that meant for both egg and meat production. If farmers want to rear improved breeds of indigenous chicken, then they have to provide adequate feed that is suitable at each growing stage.
These are divided into three categories:
A starter diet or chick mash: This is a high protein feed that is given to chicks, from day old up to 8 weeks. Each chick should eat 2 kg in the 8 weeks.
Growers mash: This contains medium protein. It is offered from 9 weeks up to 18 weeks. Each grower consumes about 18 kg during this period.
Layers mash: This is lower in proteins. It is offered to hens from 19 to 75 weeks. Allow 120 g of feed per bird per day. An egg-laying hen consumes about 45 kg of layers’ mash in a year.
Examples of home-made rations;
Ingredients (%) Chicks Growers Layers
Maize 30 25 35
Wheat 20 25
Wheat bran 10 15
Rice bran 10 10 35
Sunflower cake 10 5
Cotton seed cake 5 10
Soya cake 10
Fish meal 2 2 15
Beans 10 5
Bone meal 1 1
Limestone 0.5 0.5 2
Salt 0.5 0.5 0.5
Mineral premix 1 1 1
Ground dried legume leaves 0.5
100 100 100
Rations for supplementing local chicks;
Ingredient Quantity
1) Crushed maize/sorghum or
millet
1 kg tin
2) Wheat/sorghum or millet bran 1 kg tin
3) Sunflower/ sesame /groundnut
cake
2 match boxes
4) Bonemeal / Salt mix 1 matchbox
5) Fishmeal (omena) 2 matchboxes
6) Sesbania/ leucaena leaves 2 matchboxes
Feed at different ages;
Age Intake (g)
1 week 12-15
2 weeks 15-21
3 weeks 21- 35
4-6 weeks 35-50
7-8 weeks 55-60
16-27 weeks 68-80
28 weeks 100
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