The delivery of great business results is vital in helping you to achieve your vision. Great results benefit you in many ways, namely; a return on your money invested in your business, spare cash to allow you to achieve what is most important, peace of mind, confidence in your business and yourself, harmony in the home and relationships as well as confidence in you from investors and funders.
Sustainability is very important of course and the first point to consider here is financial sustainability i.e. the ability to sustain operations year on year on year. If the business is consistently unprofitable, then quite simply you cannot operate, end of story! Inherent in this is operating in harmony with the environment, people, the community, markets etc. If you don’t respect these considerations, the profit will eventually turn into losses.
Financial sustainability is all about profit! It always has been and always will be. Capital gain is a nice bonus but is fickle, as the world is once again learning. Profit can be defined as “positive cash flow” and this brings value to the business, reward for ownership and options for owners (as discussed above).
Here are the 6 Profit Principles - they are a road map of how profit is banked in drystock farm businesses:
1. Build your strategic business plan and develop the skills and resources to achieve it Read more.....
2. Determine available livestock profit periods throughout the year Read more.....
3. Arrange funding to receive profit from profit periods Read more.....
4. Ensure optimum pasture and soil conditions are available for profit periods Read more....
5. Fully feed quality profitable livestock during profit periods Read more.....
6. Set up to capture future profit opportunities Read more.....
In the next few GrowFARM e-Newsletters, I will outline each of these principles to help you understand how to make them work for you. After all, the principles are just principles until you give them life and energy by taking action and putting them into practice.
This article appears in the GrowFARM Connector (March 2010) - our monthly e-Newsletter. Click here to subscribe to the e-Newsletter