Is Your Current Business Fit For Purpose? …  Ian Browne (Stafford)   

The start of a New Year is always a period of renewal and refection.  While we are entering a period of significant change, we should not abandon everything that is good.  Many businesses are managing currently to make sufficient profits and cash to enable them to live and do some modest reinvestment.  The question becomes how will this be continued into the future?

It is now more important than ever to concentrate on your “core business” or the main enterprise that generates your livelihood.  Do you understand what elements are particularly good about it and almost more importantly which are not so good?  Have you a clear understanding of your costs and the breakdown of them in the most relevant manner?  The skill must surely be to have the clarity as to what is really important and concentrate on that without being distracted by red herrings.  Are you achieving the important KPIs (Key Performance Indicators) or targets for your business?  If you are not sure what these are, then you may need to get help in prioritising and setting clear targets now.  If these do not exist, it implies the business is not optimising what can be achieved and as a result it will be unlikely to prosper easily in the future.

Assuming that the points in the last paragraph are being met, then you should broadly be carrying on farming in the same manner as now.  The difference between a strong business and a less focused one is that the strong robust businesses are not easily blown off track by the “red herrings” of life.  Currently fertiliser prices are preoccupying too much thinking time.  If you need it to make the business tick, then accept you will have to obtain it. 

Finally, when some businesses have gone through all the thinking and planning to achieve their goals, it may appear that there is a need to exit their current system.  This may well turn into a new opportunity for joint venture farming either with a contract or share farming agreement or it may be sensible to join up with a neighbouring farmer to create a larger and more viable business.  What is obvious to me is that there are a multitude of opportunities which will arise in the next few years for those who want them.  You do however need to fully understand your existing business and ensure that you are in a good position to consider new ventures should you wish.

Contact Ian at ianbrowne@fcgagric.com or your local FCG Office, for an independent assessment of your business to ascertain how strong the foundations are to cope with adversity and opportunity in future.