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Business (and investment) opportunities arise when technology meets and improves on an old business practice

Posted By fathersez On January 29, 2008 @ 6:38 pm In Investing

I have written about [1] our goat farm. The land is being developed now and our target date for “opening” the farm is 5th April 08. 

In some lesser developed countries like India, people with extra funds would buy goats and hand them to goatherds to tend. The goatherd would take care of the herd, feed them, give them medicine if needed etc. The offspring were shared 50:50. 

It was a win-win situation for both the investor and the goatherd. The difficulty was in matching goatherds with investors. This was done by word of mouth as trust was a very important factor in this equation. 

In Malaysia, a group of people have brought technology to this age old practice. 

They have set up a website, [2] offering matchmaking services for the investors and the goat farms. (The website is in Bahasa Malaysia.) They have prepared a “prospectus” showing the indicated rate of returns on investment, risks involved, minimum investment required etc. 

This is a great idea, as it takes away the nitty gritties of running the farm for the investors interested in goat rearing and provides capital for others who are keen to physically embark on goat rearing. 

As in any other investment, there are risks. The returns quoted  of almost 1300% per annum over 6.75 years appears to place the risk level at a high level. 

This is a great example of creating a business opportunity. Using technology to improve or facilitate an age old business practice.  

My wife and I will be registering our farm with e-pawah.com.my and offer to act the role of the traditional goatherd for the investor. Let’s see how this works out.

It would be interesting to hear the views of readers on this investment.

  

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URL to article: http://www.fathersez.com/business-and-investment-opportunities-arise-when-technology-meets-and-improves-on-an-old-business-practice/

URLs in this post:
[1] our goat farm: http://fathersez.wordpress.com/2008/01/17/2008-%e2%80%93-the-year-for-earning-more/
[2] offering matchmaking services for the investors and the goat farms: http://www.e-pawah.com/pawah1/Default.asp
[3] Image: http://www.addthis.com/bookmark.php?v=20

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