Business Model Development
The Agricultural Commodity Collective Business Model
While the Agricultural Cooperative (AC) dramatically increase in Cambodia, but they still have many challenges in term of business skills, working capital, the incentive to move forward the business and access to market. Currently, ACTIS is actively in supporting AC to develop a business model in agricultural commodity collective business by stay in touch with them for coaching and mentoring and joint venture.
We have supporting AC to develop the business plan with including the production plan, financial plan, risk analysis and mitigation, management system and incentives policy.
The business model is come up the joint venture of the capital, resource and staffs between our company and agricultural Cooperative. We are together working on improving the agricultural productivity, quality, collective system and market linkage. AC have assigning the board member by invest some capital depending on their policy, the board member who are assign to joint with us will also invest some capital and our company will invest some capital and staff. All the people who are involve in the business will get the incentive by working days fee or salary. Then, the net profits will be shared as follows:
- 20% to Agriculture Cooperative
- 80% to all shareholders including AC, individual AC board members who are assign in the collective business and our company.
Normally, our company will not include the salary of our staffs in the business operation, therefore the net profit of our share will covering on staffs salaries, business relationship and development such as searching for buyers, negotiate and dealing with buyers, looking for loan and interest rate.