Any business needs a real focus coupled with business strength. Sheep and beef farm businesses are no exception. However, sheep and beef farm businesses often don’t fulfil these 2 key business requirements. One of the big reasons is that the owners usually lack a definite focus that is highly relevant to them.
New Zealand sheep and beef farm business owners have had consistently poor profit and other results for decades now. Therefore, everyone in the industry has been calling for the upskilling of these farmers so they can be ahead of the game and deliver profit every year. We all know that the real strength in our industry is going to come from those who have the most invested, the most to lose and produce the products others in the industry use to generate their incomes from.
There are only two priorities for sheep and beef farm pasture - if you want to generate profit that is. They are (as our GrowFARM® clients tell us) very clear, logical and straightforward.
Several of our accepted on-farm practices are keeping many sheep and beef farmers in a state of low profit and lack of belief that they can generate any more profit than they are doing now. In fact these practices tend to be recommended to farmers with the belief that they are sound. However, there tends to be very little connection with long term use of these practices and the historically poor business results from farming that are keeping our farm businesses just off survival. Here are some examples:
It is incredible to think that many of our sheep and beef farm business owners own multi-million dollar businesses yet treat them like a self-employed or employed situation. Why do I say that? Two reasons – firstly, many scrape just enough to live on and over time, farm business results have shown this to be the case. Unfortunately this can become a habit of thought. “At least I am working for myself” is often the justification. Secondly, the words used are an indication of the thinking behind them. See above but I also hear things like “(Sigh) oh well, I’m in it for the lifestyle”, “This is my policy”, “You've got to work hard to make it in this game” and “How can I make more income?” This type of thinking is definitely not Business Owner Thinking. Great business owners use words like “This is where we are heading so what can we learn to make it happen?”, “We must leverage ourselves well to ensure we get to where we want to go,” and “how can we generate and receive better profits for our efforts to help us get to where we want to go?”
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