Farming Needs Planning
As a result of the distribution of our book “Grow Your Numbers”, over recent months we have met with a number of farmers, ranging from those new to the industry to those owning several farms.
There has been a constant theme from our discussions that clearly identifies that there is a need for a greater focus on planning amongst farmers, both short and long term.
While many farmers do have a plan in the back of their minds, these are not written down or communicated with all parties involved. Generally, as busy people, farmers are heavily involved with the operational matters concerning running the farm.
In not having a plan, we expose ourselves to the following issues:
- Not having all parties aligned and moving in the same direction.
- Frustrations with the lack of communication around the future of your business. This is a common theme in succession.
- Not having a document to refer to when making other decisions in your business that ultimately affects your goals.
- Most decisions on farm therefore become short term solutions.
- Losing the ability to make any changes within your farming system.
- Poor financial reward.
- Lack of short, medium and long term satisfaction.
You wouldn’t dream of just getting in the car and driving aimlessly around. You have a route or a plan of where you are going and if you encounter an obstacle or accident along the way then you simply adjust your route and head in a different direction, but still with your end destination in mind. Having a business plan is like having a map, a route to where you want your business to go. One you can follow and one you can adjust along the way in order to get to your destination.
There are 7 simple steps to creating a business plan that will set your business apart and help you achieve success in your business.
We have found this through consultation with clients and non-clients in Taranaki and across the country, that if you follow these seven simple steps you will create and achieve a plan for your business that will stand you in good stead for the future. It will clarify your direction and ensure that you are all focusing on the same goals.
Over the years we have found that the way that you keep getting traction, growth and development within your business is through continuing on with the process and building your plan into your business and regularly reviewing it. This is best done every 90 days. You can review the plan, make sure it is still important and that you can be kept accountable to your strategies and action plans. A solution for this is to bring planning back into your annual calendar.
With the planning process completed, you will know your numbers to a greater degree. You will have a better and more focused business, and a stronger relationship with your bank