Are You Being Reasonable?

During my career, I have often been described as “unreasonable” by some Bosses, numerous Bankers, and some of the so called “Industry Experts.” While they might not agree with my approach, it has really served my Clients well, allowing them to try innovative approaches & reach new goals.

As George Bernard Shaw stated:

“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”

I could not agree more. In fact, “trying times” require trying novel approaches. Please remember that today’s greatest inventions were yesterday’s crazy ideas. Some examples include the cell phone, the internet, artificial intelligence & numerous other items.

In order to maximize your results, what changes do you need to consider? I know that there are likely some items or changes you’ve been thinking about making in your business. This may be the most optimal time to implement them. To reduce costs or boost revenues more, what changes do you need to consider today?

These may not even be directly involving you. Here is a procedure I learned from Dan Sullivan of the Strategic Coach organization. “What do you enjoy most? Least? Is there someone in your organization who might thrive with this task that you most dread?

Likewise, can you add equipment, software, or Ai to achieve some tasks? Begin your thinking by following my recently trademarked process that I have used for 25 years. This “SAVE™” process stands for Simplify, Analyze, Visualize & Execute. It has worked extremely well to maintain our focus on what matters most.

In fact, during the past 10 years, our Clients have boosted their Revenues by 32% while limiting their cost increases to 17%, leaving them with considerably improved bottom lines. Additionally, in 27 years, we have not lost any Clients, except to retirement and death (unfortunately).

If you’d like to explore this SAVE™ process for your business, please contact me at john@success-strategies.com and remember:

“Let our advance worrying become advance thinking and planning.”

Winston Churchill

Let’s take your business to the Next Level!

Will You Thrive?

Currently, most of agriculture is in a challenging situation, with interest rates just starting to be reduced, costs that are out of sight due to inflation since 2021, and regulations on labor & other business items that are, at best, onerous.

However, given those variables, are you positioning yourself to do more than just survive our current downturn? Are you positioning yourself to thrive? At the risk of sounding like the eternal optimist, let’s discuss what this will require.

Here are a few steps to implement:

  • Skip the “worrying.” It will do absolutely nothing, except cloud your thinking. As Mark Twain so accurately stated, “Worrying is like paying interest on a debt you never owed.”
  • Why not focus only on achieving greater levels of success. What do you need to do to make things better? Spend some time thinking about this.
  • Fine tune your Revenues & Expenses. Are there particular items that you have been wanting to address but have been putting off?
  • I just completed my first two Client Budgets for 2026. Their specific focus was on the areas of Labor Efficiency & its resulting costs, Feed Costs, Insurance (which they have now bid out…), and the length of Loan Amortization of term loans.
  • Is it time to “pull the trigger” on Capital Expenditures with a definite payback? One of my Clients just initiated the installation of an $80,000 Sort Gate in their milk barn. With 2,600 milk cows, they figured the 1.5 lb/cow increase in production at $15/cwt would pay for it in 135 days. However, the bonus was on reducing their labor force by two men, a savings of $110-120,000/year!
  • Another example was a Client who bought a slightly used 17’ disk that will reduce the number of trips across their field by 1/3, saving on fuel costs…
  • As I suggested on bullet point #3 above, are there new Revenue sources you can add? One Client of mine is in the process of adding solar panels that will provide them with $95,000 savings/year on electricity. This is huge.

The biggest point here is that we all can do more than just survive, even in the toughest economic environments. Why just survive? That’s simply “Amateur Hour Stuff!” Let’s find ways to thrive, for as Winston Churchill so accurately stated:

“There ought to be ways of reforming a business, other than by merely putting more money into it.”

Let’s take your business to the next level!

Where Are They Now?

During the past 27 years, I have been blessed with the opportunity to work with hundreds of agri-businesses, specifically on their financial progress and, in some cases, their complete turnaround, in terms of how they operate.

Initially, we go through some basic questions about what is currently happening in their business and what they would like to see in 3-5 years. Ninety-five percent of them state that they would like to be more profitable.

I always explain that this will require three steps. We need to know:

1.)   Where are they now? In other words, we examine their profitability and cost structure. This is especially important now, given the recent rate of inflation. Do they have the optimal debt structure in place, one that best serves them well and maximizes overall Cash Flow?

2.)   What items can we change? Are there improvements that are possible regarding costs? If you are shipping milk or other food products, are you achieving “quality bonuses?” Is your work force being optimized? Their performance can certainly influence quality levels.

3.)   What must we change? Earlier this year, I worked with a Client who truly was the definition of insanity. You know, being unwilling to change anything and then expecting different results! Their costs were high, their producing units were lower and, as expected, their feed program was awful. Results? Equally terrible!

When we run into challenges like this, my most difficult challenge is convincing people to make changes, and, as I stated in #1 above, the first task is to measure results. If you measure them you can understand them. If you understand them, you can control them, and if you can control them, you can improve them!

We never want to be an example of “insanity,” as I said above, doing things the same way and expecting different results. As I review the results of our Clients these past 10 years, I observe the following. Their Revenue has increased by 32%, & their Costs have risen by 17%. That represents the answer to the question in the title above: Where Are They Now? More significantly, it clearly shows that measuring their results every month has achieved two tasks. 1.) They boosted their existing income results and sought out new revenue sources. 2.) While they were faced with cost increases, they maintained their jump in expenses at a level that was less than their revenue improvements. How did they do that? Simply, by measuring and fine tuning their monthly cash flow!

My question for you is – “Where are you now?” If I can assist you with this, please contact me. This is challenging and is not a time for excess pride. It is a time for action.

“There ought to be ways of reforming a business, other than by merely putting more money into it.”                Winston Churchill

Let’s take your business to the Next Level!

Help is on the Way!

Two months ago, as I was traveling to World Dairy Expo in Wisconsin, I headed east on I-80 and noticed a semi-truck & trailer coming across the median toward our vehicle. Holy smokes! Fortunately, we were protected by the wire cables that separated the two sides of this interstate highway.

I called 911 right away to give the operator the mile marker where this accident had happened. After thanking me for calling it in, she exclaimed that “Help is on the way…”

Given the current milk pricing in the dairy industry, as well as the additional deductions being assessed by some cooperatives to shore up their Balance Sheets, many producers are likely hoping for the same thing… that help is truly on the way! Prices have been slammed to levels we haven’t seen for years.

What to do?

1.)   No, do not “put your head in the sand.” Survival will require your full attention.

2.)   Instead, realize that feed costs are at a very nice low point, keeping overall costs down. Additionally, your cull cows for beef and the calves you are selling are at lofty price levels.

3.)   However, even if these two items stay at their current levels, how long can you manage the upcoming low milk prices? Knowing your Break-Even levels will help.

4.)   Additionally, while our primary focus has been on milk prices, remember that there are a lot of other variables to consider.

5.)   What else can you adjust? Are you maximizing your milk production levels? Are there some costs that you can reduce? While we never want to cut costs to the point where it would hurt cow performance, is it time to look at multiple sources of commodities, i.e., initiate some price competition?

6.)   Is your labor force being fully optimized? Can we increase their productivity? When did you last bid out your insurance? How about Worker’s Comp and Supplies? Today, your very survival may depend on these reductions.

This is a time for action. Don’t delay. What’s your first step?

“The world has the habit of making room for the man whose words and actions show that he knows where is going.”                      Napoleon Hill

Let’s take your business to the Next Level!

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Can You Be Trusted?

How do we build trust with others, especially if they have previously taken advantage of us at some point?

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Do You Measure Up?

Not long ago, I had a meeting with one of my Clients and his Banker. We were feeling quite good about our YTD financial numbers, but we also wanted to touch base with her about some upcoming projects that we were starting to outline for future expansion.

Now, I went into this session thinking that we had, thus far, had a really good year. However, we were quickly reminded that this Client was still not in the bank’s top 10% in terms of profitability. After recovering from the shock of her comments, I reminded her that 90% of the bank’s customers were not in their top 10% for profitability… It was a mathematical fact.

However, I felt that it was better not to “win the battle & lose the war” by delving more deeply into this point. Thus, I shared a comparison of how far this Client had come. When we started with them five years ago, they had experienced several years of large losses, and they were now well on their way to a third consecutive year of solid profits. The best part of this discussion was that I had the financial analysis to prove it.

If you had been put on the spot like we were, could you have countered the Banker’s anguish with similar analysis? With the tight margins that have historically plagued the dairy industry, I suggest that you develop a system to track these same numbers.

Allow me to share three reasons to do this and obtain a firm grasp of your Cash Flows. First, why would anyone want to run a business and not know how they were doing financially? It is the “scoreboard” for your operation. To keep moving forward successfully, you must know how your operation is faring. It should be a solid source of motivation for you to make the necessary adjustments and continue getting better.

Second, it is good to be prepared if and when you are ever confronted by comments like the one we received at this bank meeting. I can hardly describe the joy I received in cutting through the misinformation and setting the record straight, based upon their true results… Having this information can also help if you ever need to find new financing.

Finally, think about the next generation of your operation. This is a challenging industry, and if we want the next generation of leaders to participate and make it even better, they will require a solid understanding of what they are getting involved in, because there are so many other opportunities available to them. Let’s help them as they seek to lead your operation forward to even higher levels. Remember, their success might even represent your retirement funding as they take the lead.

Financial analysis is one of the key areas that we focus on at Success Strategies, Inc. If I can assist you with this process, please let me know.

“The future belongs to those who see possibilities before they become obvious.”

John Sculley, Former Apple & Pepsi CEO

Let’s take your business to the Next Level!

What Could Be Worse?

I recently heard Robert Kennedy speaking about a conversation that he had held with Turning Point founder Charlie Kirk, prior to his sad and unwarranted assassination. Kennedy suggested that there were worse things than dying. One such example would be to live in a communist or socialist state where you had no choices, effectively in a position where you could not make your own decisions, one where you had no Constitutional rights.

Now, I do not want to turn this blog into a political diatribe, but I do wish to use it as a launch pad for you to reach a higher level of your future. If money were not an object, would you pursue some role that is different than your current one? Do you absolutely love what you are doing in your life? Do you have higher aspirations? Are you being your best self?

If so, I applaud you. My point is that we have so many options available to us. Let’s not overlook them, particularly out of fear. Fear is nothing more than an acronym for – False Expectations Appearing Real…

Have you been thinking about something new and challenging, career wise or for your Family or something even bigger? Set the goal, recognize the obstacles, and then figure out how you can mitigate each of them, as you set out on your new mission.

Motivational speaker Les Brown tells the story outlined by Dr. Howard Thurman, who said that the ultimate positive would be to be on your deathbed and be completely surrounded by your Friends and Family, providing you with your final moments of love & comfort, celebrating your accomplishments in whatever you had pursued.

Contrast that with the pain associated with being in the same situation, except that you are surrounded by your unfulfilled dreams, and these dreams say to you, “We came to you, and only you could have fulfilled us. But now we must die with you.”

What a sad situation that would be… What goal or decision have you been putting off?

Please don’t let another moment go by without addressing this. Move forward with your dream. Prove the naysayers wrong!

I will see you at the finish line and if I can assist you on this process, please let me know.

“Wherever you are in life, you made an appointment to be there.”

Les Brown, Motivational Speaker

Let’s take your business to the Next Level!

What Are My Options?

In uncertain times, having options can be very beneficial, but what are they actually? Well, options come in many forms. You can buy them to set a floor under the price of a stock you are buying or selling. You can also use them to put a floor under the price of farm commodities such as milk, soybeans, corn, or wheat. Essentially, they provide you with insurance against a fallout in the prices you receive.

At the risk of sounding repetitive, they are a tool that provides you with genuine “options.” You effectively have some real choices. You can choose, for example, to sell at the price set by the option if prices have fallen below that level. If the market price is higher than the floor set in your option, you simply take the higher market price and let the option expire unused.

This is probably an oversimplification of the process, but it will give you an idea of how they work in the agricultural markets. They work just like insurance on your house. You only exercise the option if you have a “fire,” so to speak.

One of the biggest complaints I often hear about options, especially in the dairy markets, is that the options are too expensive. Really? If you honestly believe that, talk to a producer without a “floor” under his milk prices who just received $15/cwt for his milk. It’s not a free ride, but it provides you with some comfort that you are not going to get slammed with huge losses because of the prices received. It certainly beats being at a price that is $4/cwt below your break-even level…

Another objection is that if you set these up and don’t exercise the options, you have “simply wasted your premiums.” Well, well. Isn’t that interesting? Since they are another form of insurance (against price fallouts), I have one question for you. If you buy house insurance (& I hope you do) and then your house doesn’t burn down, do you call your agent up and complain that you really didn’t need the insurance? Of course not.

Likewise, with options, the only reason they will go unused is if you get higher market prices. So, your profits should be fine. Why complain about the cost of that “insurance” you put in place on your selling prices. The key here is to consistently use options to protect yourself against price volatility. Then, you won’t be saying, “Oh, if only I had…”

What action have you been putting off in this area? If I can assist you with this, please let me know.

Let’s take your business to the Next Level!

If You Think for One Moment…?

If you think for one moment that you can do something, you are correct. In a recent article by Joshua Becker entitled “Focus on the Reasons You Can,” he does a great job of explaining the benefits of changing our thinking. As the saying goes, “Whether you think you can or think you can’t, you are correct.”

So often in life and in business, we remind ourselves to be “realistic.” As a result, we temper our expectations. We accept less than what we could have or achieve. Sometimes even well-meaning friends or relatives tell us not to take the risk… If you do a survey of people, you will find a very small percentage of people who can tell you what they want in life. However, 95% of them can tell you what they don’t want in life!

Joshua Becker suggests that “Almost everything worth accomplishing in life is difficult.” He goes on to tell the story about a conference that he attended years ago where the prolific writer, Anne Lamott, was asked the following:

“‘How do I find time to become the writer I want to be? I am a new mother, tired and ragged, and I just can’t find the energy to write during this phase of my life. Should I wait until it passes?’

Anne’s response was swift, pointed, and memorable.

She replied, ‘Listen, there is always going to be an available excuse as to why you can’t do your writing. You are newly-married, or you have a young child. Next, you will have more than one child, or you will be parenting teenagers, or beginning a new career, or traveling too often, or involved in this or that. There will always be a reason why you think you can’t do what you need to do. The pursuit is to overcome these obstacles in order to realize what you are called to accomplish.’

I’ve never forgotten Anne’s words of wisdom that day. In fact, it’s been ten years, and I still remember where I was sitting in the room.”

The point is that you can, indeed, reach that goal you have in mind. Get beyond the paralysis of pessimism. Instead of asking if you can do something, start to ask how you can achieve this objective. Write it down and give your mind an opportunity to start working toward its achievement. Your subconscious mind will push you forward in a positive direction, and as Joshua Becker points out: “… those who focus on the reasons they can, find hope and energy and perseverance.”

What goal or decision have you been putting off? If I can assist you with this, please let me know.

Let’s take your business to the Next Level!

What Should I Do Next?

Recently, I had a Client ask me if they should go ahead and order the steel roofing they need for a barn reroofing project. The conversation turned to tariffs and what their impact might be on prices. Since he has the necessary Cash & Credit available, I suggested that he proceed. I’ll explain why in a moment.

However, I first want to address the issue of tariffs since they seem so prevalent in discussion today. First, tariffs are nothing new. Countries have been placing them on the U.S. for years. Prior to the Federal Income Tax being put in place in the early 1900’s, it was the primary source of financing for the U.S. government. While they can impact prices somewhat, the impact of tariffs is often absorbed by the Importer or Exporter whereby they take a smaller margin, at least for a while. Why were they put in place to begin with?

For the past 20+ years, the U.S. has run trade deficits with our trading partners, and these deficits were being financed by taking on additional government debt. Given the large trade and budget deficits of the U.S., we could not allow this to continue. The tariffs were also designed to move manufacturing back to America. Given the multiple trillion-dollar investments being pledged by corporations, it seems to be working.

Yet, let’s get back to the decision about reroofing the barn. Since the Client had the funds and his herd will clearly benefit, why wait? The tariffs and all kinds of regulations will occur. However, they should not impact a sound business decision. Besides, are they the “real” reason prices have risen or is it the impact of the past five years’ inflation?

When we are facing a decision, let’s consider the following steps:

·       Decide at the outset what goal you want to achieve.

·       Consider the pluses and minuses of the various options.

·       What are the next steps?

·       Who will complete these steps and by when?

If you focus on these key steps, you will undoubtedly make better decisions and achieve solid progress. Besides, if we always waited for prices to drop, wouldn’t we all be driving rusty cars from 1962? Think about it.

“It is always your next move.”

Napoleon Hill, Author of Think & Grow Rich

Let’s take your business to the Next Level!