FIT Uganda Ltd- Promoting innovativeness in business

FITUGANDALIMITED

BUSINESSSKILLSTRAINING FACILITATORsGUIDE
StaffGuide20092010
. Written by Rachael Nsubuga Compiled by: FIT UGANDA LIMITED

2009

Prepared by FIT Uganda Limited, P.0. Box 24060 Kampala. . Tel 0414 593293 Mobile 0752 460354 Email. robert@fituganda.com, rachael@fituganda.com, fituganda@gmail.com info@fituganda.com , www.fituganda.com

FIT Uganda Ltd- Promoting innovativeness in business

Contents Introduction.......................................................................................................................................................3 Chapter1Theconceptofbusiness....................................................................................................................4 Chapter2Thebusinessenvironment................................................................................................................7 Chapter3Makinganinvestmentdecision......................................................................................................10 Chapter4Businessplanning............................................................................................................................11 Chapter5Communication/thebusinesslanguage ........................................................................................14 . Chapter6Recordsmanagement.....................................................................................................................15 Chapter7Choosingtherightmarketingmodel..............................................................................................16 Chapter8Monitoringandevaluation.............................................................................................................18 Annexes............................................................................................................................................................20 Annex1Adultlearningprinciplesandmethods........................................................................................20 Annex2Participatorytoolsforgroupexercises........................................................................................23 Annex3Therivercodestory......................................................................................................................23 2

FIT Uganda Ltd- Promoting innovativeness in business

Introduction This training guide has been developed by FIT Uganda Ltd at the written request of Soroti Catholic Diocesan Development Organization (SOCADIDO) for staff who will be involved in conductingbusinesstrainingsfor120farmergroupsthataretargetedbytheinterventionsof theBusinessDevelopmentSupportplan. Toavoidduplication,thismanualhasborrowedheavilyfromothermanualsthathavealready been developed by FIT Uganda like the FAAB and records training manual where the same contentsapplyforspecificchaptersaboutrecords,andmonitoringandevaluation.Theauthor thereforerecommendsthatitshouldbe usedalongsidetheseothermanuals.Otherchapters covered in this guide include; the business environment, making an investment decision, choosingtherightmarketingmodel,andhowtocommunicateinbusiness. FIT Uganda appreciatesthatadult trainees learnmore throughparticipationanddiscoveryas well as sharing their experiences1. Facilitators are encouraged to choose an ageappropriate, gender, and social appropriate training method for information not to be lost. Some of the methods include; brain storming especially when you need the group to share as much informationaspossible,roleplaystocommunicatetherealproblemandenabletraineestoget moreinsightintothesubjectmatterandachievenewskills.Casestudiesespeciallyshouldbe usedwhenparticipantsarenotveryconversantwiththesubjectasguidanceintotheprocess forwhichknowledgeissought.Focusedgroupdiscussionsmaybeused.Howevertheobjective of using a particular method should be clear, otherwise unguided discussions waste time. A number of participatory tools2 can be used alongside the selected method to gather information,acttogether,sensitizecommunities,etc. Itishighlyrecommendablethatsessionsdonotlastmorethanonehourtoavoidboredom.The facilitator should invest a lot of time in preparing for the sessions not to lose time. He/she shouldworkoutwiththegroupsinadvancetohavetherequiredmaterialsforthetraining. Lastly,goodluckwithyourbusinesstrainings,thereturnsareworthit!

1 2

See annex for adult learning methods See annex for participatory tools attached

FIT Uganda Ltd- Promoting innovativeness in business

Chapter1Theconceptofbusiness Trainingobjective: Traineesshouldappreciatethebusinessconcepts,anddifferentiatebetweenbusinesses Whatisabusiness? Abusinessisanactivityoperatedforthepurposeofearningaprofitbyprovidingaserviceora product. Entrepreneurs put their money at risk. The risk is worthwhile for its thepurpose of earningaprofit.Youmustspendmoneytoearnmoney.Thereisneedtoconsiderthecostof productionandsubsequentmarketing.Askyourselfiftheserviceorproductyouintendtooffer isreallyneededwhereyouareofferingit.Thispartlyexplainswhysomebusinesseslose. Keyterminologiesinbusiness To assess the participants level of understanding of the business terms, let it be a free discussionofthefollowingterminologies; Terminology Whatdoesitmean? Examples Profit Loss GrossIncome ProductionCosts Laborcosts YieldorOutput Saving OperationalCosts Credit NetProfit. ProducerPrice Note:RefertotheFAABmanualdevelopedbyFITUgandafortheseconcepts Groupwork Listallbusinessesyouknow;someexamplesarealreadygiveninthetablebelow Category Services Industry Technology Agriculture - Metalworks Example - Salon - Producing machines - Growing produce e.g. computers, - Restaurant - Food/milk bikes,software,etc processingplant - Rearing - Garage - Any other animals innovation poultry - Internetcafe (Thelistofbusinesscategoriesisnotexhaustive;emphasishasbeenputontheabovesince mostSMEsdwellthere)

or

FIT Uganda Ltd- Promoting innovativeness in business

How do these businesses differ from each other? In terms of setting; e.g. location, resources needed,labor,etc Themotivefordoingbusiness Whyareyouinbusiness? Participantsshouldbeaskedtodiscussthisingroups. Traditionalview - Tomakemoney - Theydonthaveotherthingstodo;businessisawaytopasstime. - Iamnotwelleducatedtoaffordadecentjob.Eventhoseinjobsretireinbusinesses - Wellwishers/parentsstarteditforme.Ihavetohelpthemrunit.. Modernthinking - Tobuildabusinesssystem - Toearnaliving:youtakecareofabusinesstotakecareofyou. - Tobecomeprominententrepreneurs - Topassonalegacytothenextgeneration Itshouldbenotedthatsomebusinessesoutlastothersbecauseoftheownersmentality.Ifitis a oneoff trade venture for selling for example cows in Juba, the moment the entrepreneur earns the money, the business ends. The goal of starting a business should have long term objectivesthatcanstimulatethegrowthprocess.Itshouldbecontinuous,notaonceinalife time event. In everything you do, ask yourself; Am I doing this with a business approach or simplyasafamilytradition?Doesitofferreturns? Choice of business will be tackled at length in chapter 3, but for now it is important to do a business where you are skilled enough to maximize returns. The reason some people keep jumpingfromoneenterprisetoanotherisbecausetheylackvisioninwhattheyaredoing,have neverdoneitbeforeandarenotwillingtoseekskillsbeforeinvestingmoney.Ifyourmentality istobuildabusinessempire,tosustainyouinalifetimeandthenpassitontofreshblood, thenyouneedcarefulthoughtbeforemakingarusheddecision.

FIT Uganda Ltd- Promoting innovativeness in business

Whothenqualifiestobeinbusiness? The skills possessed by the entrepreneur will determine its success or downfall. You have a criticalroleasafacilitatortoshowtheparticipantsthattheyneedskillstodobusiness. Groupwork: Useaparticipatorytool(chosenbyfacilitator),dividetraineesintogroupsofminimum3people for them to work out the questions mentioned below. Thirty minutes can be used and allow eachgrouptenminutestopresentfindings.Theaimistoworktogethertobrainstormonthe competencyofthebusinessownersundertrainingandtoshowthemtheneedtoupgradetheir skills.Thissessionwillpreparetheparticipantsforchapter6aboutresourcemanagement. Thegroupquestions a) Listanymanmadeproblemsbusinessownersinyourcategoryface(limitthediscussion toobstaclescreatedinbusinessbytheentrepreneursweakness) b) For any identified business in the table above, tables, what characteristics should an entrepreneurhavetomanagethem? c) Whydoyouthinktheseskillsareimportantforyourbusinesstogrow? Tipsforfacilitator; Belowarethequalitiesofaseriousentrepreneur; - Selfstarter - Criticalthinker - Planner - Risktaker - Economicallyactivepeople Misconception:somepeoplethinkpoorpeopleshouldbeinbusinesswhichiswrong.Poverty starts in the mind. One needs to first be empowered to have a successful creative mind to manage a business. A poor mind will frustrate a business. As economic hardships continue, business requires a high degree of creativity to respond to market demands and in a cost effective,timelymanner. These are general attributes, sometimes concerning an individuals personality and drive to succeed.

FIT Uganda Ltd- Promoting innovativeness in business

Chapter2Thebusinessenvironment Trainingobjective: For participants to appreciate that location and surroundings can affect the productivity and profitabilityofabusiness. The business is surrounded by current and future strategies of competitors, family responsibilitiesandproblems. Groupwork 1) The first group: family responsibilities should be called family basket. Discuss how it affects your business and suggest solutions to the identified problems. 2) The second group: discuss how the business basket affects your family and suggestsolutionstoidentifiedproblems The businesses normally have a small market share, due to lack of skill by business ownerstosellproduce. Thelocationofthebusinessitselfcaneitherattractcustomersorrepelthem. The working conditions can make your laborers productive or not. Are they safe at work? Is the environment clean? Pollution free? Do they have the right tools? For example if you hire casual workers to dig a 10,000 M deep sewerage pit only with a mattockandhoe,theymightbefrustratedifthetaskisnotcompletedontime. Businessownersshouldhaveskillstomaximizeprofitsfromtheirbusinesssurrounded byallthispressure.Skillsarenotalwaysinborn.Theycanbeacquiredthroughtraining, exposureandlearningonthejob. Whattypeofskills? Customerrelations Negotiations(tobuildlinkages) Financialmanagement Recordsmanagement Leadershipandteamskillstorunbusiness Etc. Businessfunctions Thebusinesshastwofunctions.Thatisproductionandmarketing.Anybusinessthatproduces withoutclearmarketingstrategiesisnotabusiness.Thesetwofunctionsgohandinhand! Howthendoyoucapturethemarket? Produceasmuchasyoucan,andmarketasmuchasyoucan. Whyproduce? Theroleofproductionistohelpanenterprisedominatethemarket Produceasmuchasthemarketrequiresyouto. 7

FIT Uganda Ltd- Promoting innovativeness in business

Mindquantities,productquality,timeofdelivery,standardsinthemarket,etc. Rolesofmarketing Theroleofthemarketingfunctionofanyenterpriseistofindandkeepmarkets. Maintainoldcustomers Getcompetitorscustomers Getnewclientsinthefieldbeforecompetitorsgetthem(dopotentialcustomersknow yourbusinessexists?) Marketasmuchasyouproduce Guideonsettingproductionobjectives Deliverdesiredquantitiesofgoodsandservices(physicalproperties,e.g.shape,weight, size,color,packaging,etc). Deliverthedesiredproductquality,intermsofstandardsandregulations,ingredients, andcompositions,etc Produceattherequiredtime Deliveratanacceptablecost Not so low and shouldnt be inflated. Set reasonable prices to attract and maintain customers.Unreasonablyhighpricessetsyourcompetitorsatanadvantage Guidesonsettingmarketingobjectives Howdoyoumarket? Whendoyoumarketandtowho?Targetswithouttimelimitsareuseless. Sellmorefrequentlytopresentbuyers Set strategy on inducing brand switching into competitors market, and avoid your clientsfromswitchingtocompetitors Turnnonusersintousersandsustainusersfromfallingoff Ensuremediumtolongtermprofitability How? Reduce costs, manage resources efficiently, and increase your bargaining powers, consult.(Sumofalltheseisbusinesscompetitiveness) Tipsondealingwithcompetition Findamarketwheretherearenocompetitors(ifpossible) Have a roll out plan for distribution of your product to reach end users (dont stay at homewithyourgoods) Beinnovative;identifygapsandpositionyourselfaccordingly. Multipleproducts(diversification)beatthecompetitor. Howmuchdoyouknowaboutyourcompetitor?Theyknowaboutyou.

FIT Uganda Ltd- Promoting innovativeness in business

Exercise Pickanotherparticipatorytoolfortraineesandaskthemtosettargetsfortheirbusinessesboth forproductionandmarketing. Time How will you Production Time How will Marketingtarget frame monitorthis? target frame youmonitor this? e.g. land e.g.advertising clearing Input Promotions acquisition Planting,etc Following old customers,etc

FIT Uganda Ltd- Promoting innovativeness in business

Chapter3Makinganinvestmentdecision Trainingobjective: This session is intended for beneficiaries to appreciate the importance of analyzing business/investmentdecisions,beforeinvestinganyresourcesandtobeabletocalculatethe returnsfromanyinvestmentdecision. Whendoyouknowthatthisbusinessistherightchoiceforyoutoinvestyourresources?Isit becausesomeonesaiditisprofitable,orbecauseyouaresureitis? Beforeanyresourcesarecommittedtoanybusiness,makesuretodoacostbenefitanalysis - Whatisacostbenefitanalysis? This is a comparison between the costs and revenue from a certain investment. For example; How much money is earned from the sale of ten bags of beans, and how much is it to produceit? Thebusinessownerasks(him)herself; - Isproductioncostaffordable? - Howmuchisthegrossincomeearnedaftersales? - Howmuchisnetincomeaftersales? - WillImakeaprofitifIsellatthecurrentrates?Oraloss? Exercise: a) Askparticipantstochooseabusinessoftheirinterest(maybecurrentlyinvolvedinthis) orfutureoption,andfillthefollowingtable.Thisisacostbenefitanalysisexercise. List all costs of List all products Gross Income Netincomeafter Investornot? after subtractingcosts (Yes/No) inputshere sold and income earned sales here Input cost product Amount 10

FIT Uganda Ltd- Promoting innovativeness in business

b) What other resources do you need? Resources are categorized into five: Finances, humanresources,information(e.g.onmarkets,prices,quality,competitors,etc),time, networks(whodoyouknowandactuallyneedtopositioninthemarket?) Chapter4Businessplanning Trainingobjective: Thissessionisintendedtomaketraineesawareoftheimportanceofplanningandtolearnhow tomakebusinessplans Whatisabusinessplan? Yourbusinessplanislikearoadmaptolongtermsuccess Itportraystheblueprintofwhatyouwanttoachieve. Itcanbebrokendownintoshortterm,mediumtermandlongrunplans WhyPlanning? Have you ever got lost? So is a business without a plan. It wanders aimlessly, wasting bothtime&moneyoftheentrepreneur Many business owners just jump into creating a businesswithout researching and makingaconcreteplan.Inevitably,theysoonfindthattheyareoutofmoneyandhave notimeorclearstrategieshowtomarkettheirbusiness Guideonmakingabusinessplan Step1.Nameyourbusiness Create a name or reevaluate the name of your business. Does it integrate well with what you are selling? Is it easy to spell and remember? Is it a name that can be well branded over time? Whyname? Tobeidentified,moralebooster,brandrecognition Step2.StateyourVision What will your business look like 5 years from now? Think of how you may want to expand it to include other branches (extensionof your business to othergeographical areas)Orextraemployees. Step3.Missionstatement This defines what your business really does, what activities it performs and what is uniqueaboutitthatstandsoutfromyourcompetitors.Italsohelpsyounottodivert from your core business when other ideas are presented. What puts you at an advantageinyourbusiness? Forexample: 11

FIT Uganda Ltd- Promoting innovativeness in business

FIT Uganda seeks to offer profit driven.yet highly professional services by highly competent&motivatedstaffforthegrowthofavibrantbusinesscommercialsector. Step4.WhatareyourGoalsandobjectives?Whydoyouexist? Clearly define what you want to achieve with your business. Make sure they are quantifiableandsettospecifictimelines.Setspecificgoalsforeachofyourproductsor services.RemembertheyshouldbeSMART.(Specific,measurable,achievable,realistic andtimebound) Step5.Factorstoanalyze Do you ever take notice that your enterprises own industry is changing? The market place may change due to social and economic conditions. Competition creates new threats and/or opportunities. New technologies may cause you to change products or theprocessinhowoperate. Step6.HaveaclearStrategicactionplan Thisisthemostcriticalstepofyourbusinessplan. Why?Becausewithoutit,yourbusinesswillnotgetofftheground. Thisshouldincludeyourproduction,salesandmarketing strategies. Itisadetailedworkplanforactivitiesatyourenterpriseatagiventime. Planningwithoutdoingishavingfaithwithoutactionswhichisdeadfaith

Quote: Theworldtodayisneedyandhungrynotforwords,butactions NelsonMandela Step7.Havearesourcemanagementplan The business environment with all the cares & daily life responsibilities and concerns shouldnotfailthebusiness.Itiscommonknowledgethatresourcesarealwayslimited, soentrepreneursshouldplantohavetheresourcesneededwhentheyneedthem.For example,withfinances,areyousaving,acquiringaloan,dependingonhandouts,etc. Ask yourself if the strategy you are leaning on is a strength or weakness for your businesstosurvivethecompetition. Entrepreneursshouldstrategizetogettheseresources; o Finances o Workers o Information/knowhow o Networks/knowwho?

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FIT Uganda Ltd- Promoting innovativeness in business

Illustration: Thefacilitatorshouldtelltherivercodestory3ofhowcommunitiesgetdependentonhandouts from development organizations instead of planning to have the resources they need. Ask trainees to discuss the pictures in the story, and to suggest how best they can mobilize resources. Step8.Haveameasureandevaluationplan Monitortheachievementofgoalsregularly. Aplanthatcannotbemeasuredisalmostalwaysdestinedforfailure. Celebrate your wins and recharge yourself to accomplish your next goal. Decide beforehand what constitutes a real serious loss and what loss will be acceptable (during the cost benefit analysisstage).Ifyoufindyourgoalsareunrealisticandunattainable,adjustthem,butrealize thatittakeshardworktoachievethem,sodon'tgiveupeasily Exercise:Makingabusinessplan Doyouthinkyoucannowmakeabusinessplan? 30minutes Note: Business plans are a bigger picture of the entire business, it includes action/work plans/targets,aswellasresourcesneededandprojectedincomesfrommarketing

See river code story as annex 3 attached

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FIT Uganda Ltd- Promoting innovativeness in business

Chapter5Communication/thebusinesslanguage Trainingobjective: Tosensitizeentrepreneursontheimportanceofeffectivecommunicationinbusiness Communicationistheartofconveyingamessage.Makesureyouareunderstood.Itiswhatthe recipientunderstandsthatmatters.Itinvolvesoral,writtenandphysicalrepresentation.They differ according to who you are targeting. For example, some markets cannot be reached physically but when writing they would do. Participants should discuss the three scenarios at length.Youmayusethefollowingtips. Tipsonhowtocommunicateeffectively; o Howdoyouprepareformeetings? o Areyouorganized?Structured?Donotusevague/unclearlanguage,orverycomplicated foryourlistener/reader.Adapttotargetaudience. o What exactly do you want from them? What should your recipient know about you? Whatdoyouneedfromthem?Whatshouldtheynotknowaboutyou?Sometimesitisa mistaketorevealtoomuchinformationatfirstmeetings,orevenamistaketoconceal some vital information at the start of negotiations.this depends. One needs the emotionalintelligencetogaugethesituationanddeterminehowmuchyourproposed partnersshouldorshouldnotknow. o This does not mean that you should sound vague. Be straight when specific questions demandstraightanswers.Thosethatyoudontfeelcomfortabletoansweronthespot, ,youcanalwaysaskforadjournmenttoanothermeetingandyouconsult. o Howdoyousayit?Agoodproposalforpartnershipmayberejectedbecauseofhowitis presentedorsaid o Doyouhavetheabilitytolistentotheothers?Donotthinkthatitisonlyyouwhohas somethingtosay o Where physical representation is required, be smart, and confident to inspire confidenceinothers o Canyoufollowupanissue?Somecustomersactuallyarenotwillingtobuyfromyou. Can you persuade them? Go there physically or make a call, etc until you get their attention. o Wherewrittencommunicationisinvolved,rememberthedates o Bepolite.Rudenessisnotattractive. o Whenmakingcontracts,somewitnessesarenecessaryjustincaseanyconflictsarise. 14

FIT Uganda Ltd- Promoting innovativeness in business

Chapter6Recordsmanagement Trainingobjective: Theobjectiveofthissessionisforparticipantstoappreciaterecordsmanagement,discussthe challengesofrecordskeepingandproposesolutions.Thetrainerisalsoexpectedtointroduce thevarioustypesofrecords. Tipsforthetrainer: Breakparticipantsintogroupstodiscussthefollowingquestions; a) Howdoyoudefinerecords? b) Howaregeneralrecordsdifferentfrombusinessrecordsandwhy? c) Discussifyoukeepanyrecordsandinwhatform d) Whatistheimportanceofrecordkeeping? e) Whatlimitssomepeoplefromkeepingrecords? f) Howcanthesechallengesbeovercome? Note: RefertotherecordstrainingmanualthatwasdevelopedbyFITUgandaLtdin2008 Hintsontypesofbusinessrecords a) Income and expense records (preferably each sub sector should have its own account) b) Activityrecords/workplans c) Inventories(detailingallassetsatfarms) d) Savingsandcreditrecords(listingdebtorsandcreditors) e) Supplieraccounts(showingstandingwithsuppliers,andordersmadeforthefarm) f) Productionrecordsperseason (yieldsperseason,preferablyeachsubsectorshouldhaveitsownaccount) Discusstemplatesforeachoftheabove,andmakesuretheyareveryverysimple.Theharder thetemplatesare,themorecomplexitisforfarmerstokeeprecords.Pleaseappreciatethat someofthemsufferilliteracyandneedsimpleguidesforthemtokeeprecords.Somebusiness trainershaveintroducedhighlevelrecordslikeprofitandlossaccounts,balancesheets,cash flows,etcthesecomplicatethefarmersabilityandwillingnesstokeeprecords.However,the trainer should be flexible to suit demand of the trainees. If they are literate and demand for these,pleaseoffertheknowledgeyouhaveonthesubjectmatter. 15

FIT Uganda Ltd- Promoting innovativeness in business

Chapter7Choosingtherightmarketingmodel Trainingobjective: Participantsshouldappreciatetheimportanceofmarketingandhowtodoittherightwayto realizeincreasedincomes. Whatisamarketingmodel? In simple terms, it is a specific way/method of selling produce at the required market conditions. Importantquestions: What is it that I am doing? Normally the product will determine how you operate. Selling milk which has a limited time period to go sour may require a different selling methodthansellingdrybeans. Whoismycustomer?Differentmarketsareapproacheddifferently Whenistheseason?Itdeterminesthelevelofefforttoputin Who is involved in selling? These have a bearing on the method used. It may be unrealistictousesomeonewhoisverybusytoopennewmarkets,orsomeonewhohas no ability to read and write to establish markets where contracts are necessary. Sometimesbuyerscanexploitthispersonsweaknesstocheatthegroup.Memberscan discussandtakeonappropriateroles What cost is involved to market using the selected style? This may not necessarily be monetarycosts,butsomestylesaresobureaucraticandtimeconsuming.Farmerscould betossedtoandfrowhileevenotherprospectivebuyerspass. Whatismarketing? Marketingmeansputasmuchtothemarketasyoucanproduce.Thismeansthatwhateveryou produceforcommercialpurposesmustbesold.Anydayproduceisinthestoresunmarketed meansmoneylost. Break into groups to discuss the advantages and disadvantages of the following marketing models/methods;(atrainershouldpickappropriatetrainingmethods,e.g.roleplaysforsome methods,brainstorming,etc.Nolecturesshouldbeusedhere) Sithomewiththeproducefortraderstofindyou Goindividuallytowheremarketsareandcarryproducethere. Joinothersinagroupandbulkproduceandwaitforbuyerstocome,orgofindthem throughmarketingcommitteestocomepicktheproducebythemselves 16

FIT Uganda Ltd- Promoting innovativeness in business

Findmoneytojointlybuyfromgroupsthathavenomarketsandselltowheremarkets are

Note: Thelistisnotexhaustive;askparticipantsformoremethodstheyusetomarkettheirproduce. Theonessuggestedaboveshouldserveaseyeopeners. HowdoIknowIamusingtherightmethod/modeltomarket? DoIhaveenoughinformationaboutwhatittakestosupplycertainmarkets? Shortstory: Some farmers loaded sweet potatoes on a hired truck to sell in Nakasero market (Kampala)fromKumi.Theyhadnoideahowmuchlicensefees,orwhichbulkbuyersto link up with in the market. They were tossed, and kept driving around, till their hired truckranshortofandaftersomedaysallproducegotrotten. This disintegrated the group and leaders fled from angry members who demanded payment. Is it a sufficient way for me to get enough produce to market? Sometimes limited capacity to beat production volumes hinders ability to sustain markets. Buyers want continuous,reliablesupply WhatisthepriceinthemarketIamtargeting?Somemarketscouldbe hard toreach but when they can be sustainable. For instance, it could be a long term buyer, high profit,etc How long does produce take to reach markets? Timely delivery is critical to sustain markets Howbigismyclientele?WhatstrategiesdoIhavetoensureconsumercontentment? Buyers who continuously drop off communicate something to you! Customer is King remember WhatisthefinancialcostinvolvedtomarketthewayIhavechosen? Thiscouldbefueltomarket,laborfeestoloadandoffloadtruck,licenses,etc. How is risk shared between me and the buyer? Generally agricultural produce is perishableandhasalotofriskinvolved.Somemodelslikeuseofcontractualbigbuyers whofetchproduceatfarmgateliftstheentireburdenfromtheproducergroups.The pricemaybelow,butcalculatethetransportcost,labor,totallossincaseofaccidents (consideringthatmostfarmersarenotinsured) 17

FIT Uganda Ltd- Promoting innovativeness in business

Chapter8Monitoringandevaluation Trainingobjective: Participants should appreciate the importance of monitoring their businesses, and be able to setindicatorsofgrowthagainstwhichtheirbusinessesareevaluated. Tipsforfacilitator: Session1:Throughbrainstormingsessions,participantsshouldthinkabouttheseicebreakers Inyouropinion,whatismonitoring? Whattypeofbusinessesshouldbemonitoredandwhy? Whatmakesithardforpeopletodomonitoring? Discuss the role played by group monitoring as opposed to individual monitoring of businesses Session2:whatshouldbemonitoredandhow?Participantsshouldbeinpositiontodiscussthe most important aspects of their businesses that they feel should be monitored to grow, and suggesthowtheseindicatorswillbemonitored. Guidelinestoconsiderwhenmonitoring Productioncapacity Businessexpansionintermsofassets,capital,labour,etc.sometimesadditionalassets and labor may mean growth or extra cost. This depends. Ask trainees to discuss parameters. Market strength; e.g. clientele, ability to satisfy market requirements like qualities, deliverytimes,etc. Incomegrowth Labourproductivity Etc Whodoestheevaluation? Evaluation is the practice of judging ones achievements; assessing set targets against actual outcomesattheendofagivenperiod. Itisahealthypractice,andmandatorytodeterminethelevelofprogressinonesbusiness.It can be done by the business owner, a group or a trusted confidant. Normally some people wouldnotwishtodisclosetheirincomestoothers,andthismeansthattheownershouldknow howtokeeprecords,anddothesimpleevaluationbyhim/herself. Ifparticipantsdonotknowhowtoread/write,itisadvisablethattheyconfideinsomeoneto guidethemthroughthis.Thiscouldbegroupleaders,NGOworkers,faithbasedleaders,etc

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FIT Uganda Ltd- Promoting innovativeness in business

Howdoweevaluate? A simple monitoring and evaluation table can be used to collect information on your most importantbusinessaspects,whichwecalledindicators. Take note that farmers records kept on a daily/seasonal /monthly basis should be used as a sourcefortheaboveinformationrequiredduringmonitoring. Farmersshouldalwaysreview/rereadtheirworkplansandbusinessplanstoseehowfarthey havegonewiththetargets. If some have not been achieved, they should have possible reasons why they failed at completingcertaintasks. Take note that for a detailed evaluation of incomes especially, and linkages created, the BDS worker should use the M&E tool (and data base) that was provided by FIT Uganda. Serious farmersareabletokeeprecordsandgettingtheinformationneededshouldnotbeaproblem.

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FIT Uganda Ltd- Promoting innovativeness in business

Annexes Annex1Adultlearningprinciplesandmethods Itisimportantforfacilitatorstohaveknowledgeaboutadultlearningprinciplesandmethods beforetheyconductanyoftheabovemodules.Thisisforthefollowingreasons; Theyareabletodescribeadultlearnercharacteristics Theywillknowwhatfactorscontributetomaximumretentioninadultlearners Trainers will be able to select the most effective training methods for a given chapter/module Adultlearningprinciplesandmethods4 Focusonrealworldproblems.Donotgiveirrelevantexamples.Foradultlearnersto participate,talkaboutthethingstheyknowalready. Emphasizehowthelearningcanbeapplied. Relatethelearningtothelearnersgoals. Relatethematerialstothelearnerspastexperiences. Allowdebateandchallengeofideas. Listentoandrespecttheopinionsoflearners. Encouragelearnerstoberesourcestoyouandtoeachother. Treatlearnerslikeadults. Givelearnerscontrol.Donotdominatethefloor.Bewarealsoofparticipantsthattalk too much and subdue the rest. A facilitator should be skilled enough to involve everybody;includingthequietones. Trainingmethods Method Advantages Drawbacks ApplicationinBusiness trainings group - Can be dull if used Do you think this Trainer presentation/ - Keeps lecturette together and on too long without method is appropriate forteachingbusiness thesamepoint. learner participation. Why,orwhynot? - Time control is easier. - Difficult to gauge if If yes, What chapters people are can you facilitate with - Useful for large
4

(Extracted from farming as a business and value chain training for Partners consultants and new staff. This was organized by FIT in January 2009).

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FIT Uganda Ltd- Promoting innovativeness in business

group size (20 or more).

learning. Retention limited. is

thismethod?

Structured Exercise/RolePlay

Aidsretention.

Allows practice of new skills in a controlled environment. Learners are activelyinvolved.

Requires preparationtime. May be difficult to tailor to all learnerssituations. Needs sufficient class time for exercise completion and feedback Can be boring if used too long without interruption.

Do you think this method is appropriate forteachingbusiness? YESNO 2.Why,orwhynot? If yes, What chapters can you facilitate with thismethod?

Individualreading assignmentsand individualExercise

Saves time (learners can read faster than trainer cantalk). Material can be retained for later use. Insures consistency ofinformation

Do you think this method is appropriate forteachingbusiness? YESNO 2.Why,orwhynot? Learners read at If yes, What chapters differentpaces. can you facilitate with Difficult to gauge if thismethod? people are learning.

Facilitated Discussion

Group -

Keep learners interested and involved. Learner resources can be discovered andshared. Learning can be -

Learningpointscan Do you think this be confusing or method is appropriate forteachingFAAB? lost. Afewlearnersmay YESNO dominate the 2.Why,orwhynot? discussion. Time control is 21

FIT Uganda Ltd- Promoting innovativeness in business

observed.

moredifficult.

CaseStudy

Requires active learner involvement. Can stimulate performance required after training. Learning can be observed. -

Information must Do you think this bepreciseandkept method is appropriate forteachingbusiness? uptodate. Needs sufficient YESNO class time for 2.Why,orwhynot? learners to complete the cases. Learners can become too interested in the casecontent. Must be accurate Do you think this and relevant to method is appropriate forteachingbusiness? learners. Written examples YESNO canrequirelengthy 2.Why,orwhynot? preparationtime. Trainer demonstrations may be difficult for all learners to see well.

Demonstration

Aids understanding andretention. Stimulates learnersinterest. Can give learners a modeltofollow. -

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FIT Uganda Ltd- Promoting innovativeness in business

Annex2Participatorytoolsforgroupexercises (Sentasseparatemailattachmenttoobigforthehandbook) Readtheintroductionofthisattachmentwell.Itguidesyouonhowtopreparegroupexercise. Toolshavedifferentobjectives.Onpage64and65youcanselecttherighttoolbasedonthe objectiveoftheexercise(iecollectinginformation,actingtogether,decisionmakingetc.)Notall toolsaresuitableforallchaptersinthismanual.Pleasetakenotethatacertaintoolselected shouldbeappropriatetoservethepurposeofthechapter/groupexercise.Itisimportanttotell whether a selected tool maximizes participation, and gathers enough information for the subjectmatter. Annex3Therivercodestory The river code is meant to illustrate the importance of working together with communitytoidentifysolutionsratherthanburdeningthemwithhandoutsandleave themstranded.Thefacilitatorwillnotalwaysbethere,hencethereisneedtoempower communitytostandonitsown. To conduct this exercise, the facilitator needs two pieces of rope or branches to representthebanksofariver,somepapertorepresentstones(ordrawslargecircleson the ground to represent stepping stones) by which to cross the river. The facilitator takes aside three members of the farmer group and gives instructions for a threeact roleplay.Theaudienceistoldthattheropeorsticksaretheriverbanksandthattwo people are trying to cross the river. They want to find something better on the other side(Figure1).Thegroupactsouttheplayinmimetotherestofthegroup. Inthefirstact,twopeopleattempttocrosstheriver.Oneperson,representingaservice provider tries to carry the other person (farmer) across the river on his or her back, Figure 4A. The service provider finds the task of carrying the man/woman across the riverdifficult.Thecarriergetstootiredtocontinue.Heorsheleavesthepersonbeing carried behind in the middle of the river and returns back to the original side of the river. The person who was being carried is abandoned to his or her fate, receiving no morehelp(Figure2). In the second act, the task of crossing the river is repeated with the same person representingtheserviceprovider,leadinganotherperson(Figure3).Inthissecondact, theleaderdoesnotcarrytheother,insteadholdshisorherhandandshowsveryclearly wherethenextstoneispositioned. TheRiverCodescene1Bearingtheload.Crosstheriverbut,byshowingthesecond personwherethenextstoneislocated,thetwomanagetocrosstheriver(Figure4).On reachingtheothersideoftherivertheycelebrate.Thepersonwhohelpedthefarmerto crosstheriverthenwavesgoodbyeandleavestheplay.Thepersonwhowasshownthe wayreturnsbacktotheoriginalsideoftheriver. Inthethirdact,thepersonwhowassuccessfullyshownhowtocrosstherivertakesa memberoftheaudienceandshowshimorherhowtocrosstheriver.Thepersondoes 23

FIT Uganda Ltd- Promoting innovativeness in business

notholdhandswiththememberoftheaudiencebutleadshimorher to the edge and then shows where to step. The role play ends when the two people havefinallycrossed. When the role play is over, the group reforms and the facilitator leads a discussion about what the play represented. The storys key element is that the river is the challenge. In the agroenterprise context, theriver is the work that has to be done to findanewmarketopportunity.Thefirstsideoftheriveriswherethecommunityis now.Theothersideoftheriveriswherethecommunitywouldliketobe.Toachieve theirgoal,communitymembersmustcrosstheriver. Theplayinvolvesthreecharacters,twoarefarmersandoneisthefacilitator.Inthefirst scenario, the facilitator brings everything to the farmer. In reality, this represents a service provider supplying the community with free seeds, tools, fertiliser, credit, transport,andtraders.However,aftersometime,theservice providergetstiredofcontinuing,suchaswhenaprojectends.Whenthishappensthe farmerisleftbehindbecauseheorshedoesnotknowhowtogettotheotherside.That is, the farmer was being carried and when support was withdrawn he or she was unabletocontinuealongthesamepath. Inthesecondinstance,theserviceproviderempowersthefarmerbyguidinghimorher throughtheriver,clearlyshowingthesteppingstonesthatthefarmerneedstouse to get to the other side. This time the farmer is slower to cross but gets there by workingwith theserviceprovider.Atthispoint,theserviceprovider leaves.However, thefarmerhaslearnedhowtocrosstheriverandcannowreturntowhereheorshe wasand,mostimportantly,helpotherscrosstheriver. Aftertheplay,themarketfacilitatorleadsadiscussionaboutwhattheplayrepresented, who did what, and how this relates to ideas on enterprise skills, learning, and community empowerment. Thefacilitatoremphasizes the merits of learning by doing, comparedwithsupplydrivensolutionsthatmayleadtodependency. Figure1&2 24

FIT Uganda Ltd- Promoting innovativeness in business

Figure3 Figure4

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FIT Uganda Ltd- Promoting innovativeness in business

Figure5 Source:ExtractedfromCIATAgroenterpriseDevelopmentbook

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