Farm Management Companies. Investors worry about costs, exits, and interference. A good manager balances emotions with clarity and assurance in all its communications.
Step 1 of 4
Q1: Clarity on Cost Components and Real Returns (input vs net vs labor); When investors ask “Mujhe asal mein kitna milega?” do you break costs and returns clearly, or give a lump figure?👉 Example 1: Hotel bill—do you show room rent, GST, service charge separately, or just say ₹5000 total?
👉 Example 2: Farming—do you explain input cost vs labor vs net returns, or keep it vague?
No break-up, only overall numbers. Like hotel bill saying “₹5000” with no details.
Rough split given verbally. Like saying “room rent ₹4000 + GST ₹1000” without invoice.
Written cost-sheet with all components (inputs, labor, overheads) and net returns. Like hotel invoice showing tariff, taxes, service charges line by line.
Detailed cost-return model, compared with benchmarks and shared monthly. Like hotel sending advance email with tariff, taxes, discounts, and loyalty points clearly stated.
Q2: Assurance Mechanisms (fixed vs profit-share returns); How do you assure investors about their earnings—fixed returns, profit share, or both?👉 Example 1: Bank FD—fixed assured return.
👉 Example 2: Stock market—profit share with risk.
👉 Example 3: Some hybrid models mix both.
Only vague verbal promises, no written assurance. Like a friend saying “paise wapas kar dunga” without date or proof.
Fixed return or profit-share offered, but not documented clearly. Like a chit fund—works until it doesn’t.
Clear contract with option: either fixed OR profit-share. Like choosing between FD and mutual fund.
Flexible dual-option (fixed + profit-share combo), with transparency in reporting. Like having FD for stability and mutual fund for growth.
Q3: Exit and Residual Value Clarity (after 7 years, premature withdrawal); If investor wants to exit, do you have a plan—or do you panic?👉 Example 1: Buying a car—after 5 years, what’s resale value?
👉 Example 2: FD—if broken early, what penalty applies?
No clarity; exit handled case-to-case. Like selling second-hand car without knowing resale value.
Some verbal understanding on exit value, no written terms. Like saying “car will fetch about ₹2 lakh” without buyer proof.
Written clause: residual value at end of contract, clear premature withdrawal rules. Like FD with clear penalty for early break.
Exit roadmap with options: resale, transfer, salvage value, or new investor buyout. Like car lease plans where you can return, buy, or exchange after 5 years.
Q4: Who Makes Day-to-Day Decisions, and How Investor Interference is Handled; When crops need spraying or harvesting, who decides—investor or manager?👉 Example 1: Cricket team—captain decides field placement, not owner.
👉 Example 2: Restaurant—chef decides spices, not customer in dining hall.
No clarity; investor interferes daily, manager feels suffocated. Like team owner telling captain which ball to bowl.
Verbal understanding, often breached. Like customer entering kitchen to argue about salt.
Written scope of roles: manager handles daily ops, investor sees reports. Like cricket coach setting boundaries between owner and captain.
Formal governance: SOPs + dashboards for transparency, investor intervenes only in policy-level matters. Like restaurant where chef runs kitchen, but menu/strategy approved by owner.
Q5: Transparency in Loan Repayment Responsibility; If loan was taken, who pays it back—the farm manager, investor, or both?👉 Example 1: Joint flat loan—both spouses contribute.
👉 Example 2: Business loan—owner vs managing partner clarity.
No clarity; blame game when repayment time comes. Like flat EMI where husband thought wife was paying, wife thought husband.
Some verbal understanding, no documentation. Like saying “we’ll split” without written terms.
Clear agreement on repayment party (investor/manager) with timelines. Like EMI mandate signed with bank.
Full clarity + backup: repayment roles documented, plus contingency if one party defaults. Like joint EMI insurance that pays if one partner loses job.