5 things successful farms have in common
No two farms are the same. It’s true, but what separates the mediocre from the great is quite consistent. A recent farm management conference identified 5 key components shared by successful farms, regardless of type.
Here they are, along with our best picks to help you put your plan into action.
1. Up-to-date balance sheet and projected cash flow
Understanding liquidity, solvency and profitability is the first step in building the financial picture of your operation. Learn how to calculate your own current ratio, debt-to-asset-ratio and return-on-assets ratio.
2. Solid marketing plan
Learn why having a solid commodity marketing plan can mean the difference between profits and losses.
4. Strong production practices and skills
Effective problem-solving requires that we ask better questions. However, two of the most important questions – “What if?” and “Says who?” – require courage. Because if you ask them on a regular basis, you’re challenging your farm’s history, traditions and the status quo.
5. Annual strategic plan
Building financial strength takes follow-through with made-to-measure plans, experts state. Once you determine where revenues go and gain education in making money grow, you need to execute your plan to meet goals.