Regenerative Investing is a new term defined as Long Term Investing sufficient to enable new business models to accomplish increasing long term ROI.
Although the idea of regenerative agriculture is being discussed around the globe aligned with various related subjects and their importance, the opportunity to invest and get an ROI based on the success of their investment portfolio, needs to exist as part of the whole view and level. The reasoning behind this is based on the answer to the question "What will it take for this new business to succeed?
My answer to this question for the investor is "enough investment money to work out the details resulting in a viable business model that returns an amount of return for the investor over a predetermined period of time"
For the business owner the question is "what does it takes to accomplish a viable business model that investor is looking for.
An objective overview for RegenerativeInvesting can be simple and effective, and in order to do so I'll provide an example that is based on what the farmer, processor and buyer have said they wanted and how an investor gets what they want as well.
What the farmers continue to tell me is they want to know that their harvest has a buyer for their entire yield, they get paid in a timely manner at a price that ensures a better profit than what they can get growing crops other than kenaf. So this must be a part of the business plan of our processors so that farmers can transition and processors have a steady supply of raw material for years to come.
Processors want to know they have a market for their processed fibers and wood core they can sell to buyers, meet all their operating costs including the payment to farmers and payments to investors and make a profit in their first year. Processors also want 100% equity in their business.
So far, buyers are saying they are ready to purchase at certain prices, need samples for testing, specific quality specifications and guaranteed quantities delivered on their schedule.
Investors that have contacted me so far are looking for equity investments that does not fit into the needs of those clients moving forward on their processing centers. Our fundraising is focused on grant (free money) and low interest loans towards 100% funding. This is the approach taken into consideration with the business plan.
With each partner in the kenaf supply chain continually doing their part, we can expect regeneration in business, the environment and communities around the world.