We are running a free online coaching session on Wednesday, June 7th, called Surviving & Thriving In Changing Times – it is all about how farm owners can overcome rising costs, inflation and softening commodity prices.
Running a farm business has never been easy, and recent economic trends have only made it more challenging. Rising costs, inflation, and softening commodity prices are just a few of the obstacles that farmers must navigate to keep their businesses afloat. But with the right strategies in place, farm owners can overcome these challenges and thrive in today’s economy.
Here are some tips…
1. Work on your business model.
Many farmers are excellent at what they do but might not have the correct business model in place.
The following diagram shows where the average farmers focus versus the top 20% of farm owners.
The results can be significant when you learn the right business model and apply it to your business. For example, this diagram illustrates that the farmers focusing on the right areas of their business are making up to $480k extra profit per year per $10m in assets managed.
Remember, it’s not how hard you work. A better question to ask is, are you working on the right stuff? For this, you need clarity on where you are going and a clear plan to ensure you are working on the strategic decisions that impact your bottom line
2. Profit First
Some farms have best practices, and some farms have best profits. But, unfortunately, only one is going to put the kids through school.
It’s not about having the best machinery or the best-looking farm. Are you really making decisions to maximise your profitability? Are you analysing your costs to see where you can minimise them, and do you have the ability to analyse your data to make decisions that will improve your profitability?
Unfortunately, winging it won’t work.
Profit first is a habit that needs focus yearly, quarterly, monthly and weekly.
Here is a graph to help you know what to do and when:
3. Benchmarking and KPIs
Linked to profit first, great farms benchmark their business. They don’t do this to compete with others. They do this so that they can improve year after year. A good benchmark will identify several KPIs so you can see where you are.
Many properties are underutilised and have a lot more capacity for profit.
Here is a list of a few of the KPIs we believe you could measure
In summary, the three secrets to a profitable farm business include:
- Implementing the right business model – the right business model makes profit inevitable, even in tough times.
- Profit first – to transform your business make profit a habit
- Benchmarking and KPI – to have absolute clarity on your business without paying thousands to your accountant
Our upcoming webinar will cover this topic in much more depth, plus much more!
Discover why your business model could be holding you back from high returns (and how to break free) and rising above challenges: how the top 20% of farmers stay profitable during tough times.
Click here to register – free webinar.
During this 90-minute session, we will cover:
- Maximising Your Farm’s Profits: Harnessing the Power of Budgeting, P&L Statements, and Balance Sheets.
- Tips From the Pros: How Emma and Mel’s Data-Driven Approach Took Their Farms to the Top
- The Game-Changing Decision That Transformed the Bell Brothers’ Farm from Losses to $500k+ Annual Profits
If you register and stay until the end of the live session, we will also share a special bonus recording with you called “Beyond Average: How Australia’s Top Farmers Outperformed the Rest Last Year with Data from One of Australia’s Largest Benchmarking Companies”.
During this presentation, we analysed the latest data and insights provided by one of Australia’s leading benchmarking companies, which has compiled data from hundreds of farms across the country to identify the key factors that separate the top 20% of farmers from the rest. We will delve into the numbers and uncover the specific strategies and practices that successful farmers use to outperform their peers, providing valuable insights that you can apply to your own farming business.
Looking forward to seeing you online. Click here to register.
Robbo
