Better Decisions: The start of a new year is the time to take stock

Sunday, January 4, 2009

Instead of making resolutions, why not take a few hours to evaluate your business, so that you can have room for improvements in the coming 12 months

by DORENE COLLINS

I am not one for New Year's resolutions. Rather, when I open a new calendar and look at the year ahead, my planning includes taking stock of the year gone by. This is a good practice for everyone, no matter what business you are in.

So take a few hours this winter and conduct an informal evaluation of your farm business in order to make room for improvements over the next 12 months. Here are some questions and suggestions to help you take stock.

• Do you keep good records of expenses versus sales in order to gauge your return on what you have invested in the business over the last 12 months?
• Are you able to break down your business into various parts to review what areas – equipment or land rental, for example – are costing you too much compared to the revenue generated? If a part of your business is not generating the revenue needed to sustain it, it's time to consider its value to the overall business.
• Talk with family, friends, clients, employees. In the "quieter" months, take the time to meet or seek other forms of feedback to find out how you are doing as an employer, supplier and vendor.
• Keep a journal and jot down ideas, thoughts and wisdom from others while attending workshops, conferences, informal gatherings or just working away at home. Refer to the journal as you plan for the next season.
• Keep up with technology and new resources. Winter is the perfect time to grab that pile of magazines, journals and other reading that you collected during your busy season. Set time aside each day to review this material for new ideas. Ask friends and colleagues about leading edge websites and on-line resources to keep you up to date on marketing and production practices, along with other related trends and ideas.
• Go for a walk – with a fresh set of eyes. Dedicate some time to walking your farm when it is not in full production and visualize what new crops you will plant on what acreage, what obvious repairs need to be done to buildings and equipment, what changes or new things you would like to see for the next spring.
• Take time for yourself, family and friends. In the height of the planting, growing and harvesting seasons, you often hear yourself or your family saying, "I want my life back. I want to be able to go to town without worrying about picking up business or equipment supplies. I just want to sit in a coffee shop with a newspaper." Winter is the time to do this. Whether you take a cruise or stay at home, take time to relax, reflect and enjoy. Restorative rest will give you the energy you need as another busy season approaches.

The Business Management Unit with the Agriculture Development Branch of the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) is committed to assist farmers and rural entrepreneurs in accessing the necessary business skills and tools. Informative fact sheets, publications, workshops and other advisory services are available just a click or phone call away: www.ontario.ca/agbusiness or 1-888-466-2372. BF

Dorene Collins is Marketing and Customer Service Program Lead with the Ontario Ministry of Agriculture, Food and Rural Affairs. Email: dorene.collins@ontario.ca