Livestock Wealth sells cows online as an alternative method of investment for people who find the stock market complicated. The returns are linked to the beef price instead of the Johannesburg Stock Exchange profits.
YN: How did your business start?
The business started out when I was once again frustrated with trying to time an entry into the stock market. Because of this, I was trying to find a way I could save and make my money grow in a way that wouldn’t get affected by factors that I can’t control or change. Owning a farm as an individual proved expensive, but cheaper if there are many of us farming the same thing on the same farm. That is how I came up with the crowd farming idea. We now farm livestock on behalf of investors and they earn income from the annual sale of their cows’ offspring.
YN: Why did you choose this area to set up shop?
We are based at The Innovation Hub in Pretoria (Lynnwood Manor) but our farming operations are in Vryheid in KwaZulu Natal. The Innovation Hub is a melting pot of young people with big ideas, under one roof, bringing their businesses to life.
YN: How did you find your premises?
I introduced myself to McLean Sibanda, the CEO of The Innovation Hub, at a function in 2013 and told him my idea about wanting to create an alternative investment platform that uses cows as a base asset class instead of shares and bonds. He loved it and suggested I meet him the following week. The rest, as they say, is history.
YN: Why are they ideally suited to your business?
The rent is subsidised and the Wi-Fi is free. One also gets exposure to various entrepreneurship forums and expert advice.
YN: Who are your neighbours?
My neighbour is Tour 2.0, a dynamic team that is revolutionising township tourism. We always compare notes at the coffee station and learn a great deal from each other.
YN: What are the shop rental/sales prices like in this area?
We pay R750 a month for an office that can comfortably accommodate four staff members in a secure, aesthetic environment.
YN: What is your shop footprint?
A large portion of our business is done online at livestockwealth.com.
YN: Do you have any expansion plans?
We are opening an office in Sandton in March. This will bring us closer to our customers in the Johannesburg area. Our main expansion is the farmland we are acquiring for livestock. We aim to own farms across South Africa and the continent.
YN: Do you operate online as well?
Yes and people without internet can SMS “Cow +” their name to 31022 and we call them back.
YN: What’s your most popular item/service?
012 844 0655
Words: Zena le Roux