‘Start small and alone’ – Agribusiness expert warns young people against business partnerships with friends

Starting a career in agribusiness requires careful consideration, particularly when it comes to forming partnerships with friends. An expert in the field, Engr. Mahmud Mohammed-Nurudeen, advises young people to avoid immediate partnerships and instead focus on starting their businesses independently on a small scale.

According to Mohammed-Nurudeen, partnerships can introduce strains on friendships if partners do not have transparent arrangements for sharing responsibilities, managing losses, and accounting for investments. He emphasizes that when partners lack equal access to information about their business operations and financial performance, it can lead to mistrust and disagreements.

During an agribusiness incubation workshop at Valley View University, Mohammed-Nurudeen highlighted the challenges of partnerships, particularly the potential for one person to carry the majority of the responsibility while others remain disconnected from the daily operations. This arrangement can create suspicion, especially when the business manager starts reporting losses, unexpected expenses, or operational difficulties that the other partners haven't witnessed firsthand.

The expert also pointed out that agribusinesses, especially poultry farms, are vulnerable to various uncertainties such as disease outbreaks, fluctuating production costs, market conditions, and unfavorable weather. He stressed that partners must be actively involved and regularly informed about the business's developments, including profits, losses, operational challenges, and the effects of adverse weather.

Drawing from his experience working with young entrepreneurs, Mohammed-Nurudeen shared instances where partnerships dissolved due to mistrust and disagreements over money. He recounted cases involving trained graduates who started poultry production together but eventually fell out and abandoned their businesses because of suspicions that each partner had of the others cheating.

Financial disagreements between friends can extend beyond the business and damage long-standing relationships, leading to public accusations on social media. Considering these potential consequences, Mohammed-Nurudeen emphasizes the importance of carefully weighing the implications of mixing friendship with financial commitments before entering into any agribusiness partnership with friends.