Is courage actually contagious? Can you literally catch it? In the book “Courage is Calling” by Ryan Holiday he states that “… courage, like fear, is contagious. One person who knows what they are doing, who isn’t afraid, who has a plan is enough to reinforce an outnumbered army, to buck up a broken system, to calm chaos where it has taken root.” Sometimes, all it takes is one person with courage. Someone who isn’t afraid to face defying odds.

It reminds me of several of the financial turnarounds I’ve been directly involved with over the past 24 years. I’ve been faced with some fairly difficult situations with Clients where we faced off with multiple bankers and attorneys, attempting to persuade them that the financial projections I had developed could work, as planned.

I’ve discovered that you can truly make a difference when you exhibit courage. The reason behind this is that when you exhibit courage, you also make others brave in the process. You literally instill courage in them, too. Calmness can then spread, and that, in turn, leads to higher levels of confidence.

From the same book, I’ll share the story of “Texas Ranger Bill McDonald, called in by the authorities in Dallas in the early 1900’s to break up an illegal prizefight. When he arrived, the mayor was aghast. ‘They only sent one ranger?!’ he asked. ‘You only got one riot, don’t you?’ McDonald asked.” In essence, one person with courage can make a majority.

With this mind, what steps are required?

1. Determine your ultimate objective.
2. Recognize that there will, undoubtedly, be some challenges you will face.
3. Determine the “Steps” you need to take.
4. Set some deadlines for the various “Action Steps.”
5. Decide who will initiate the various actions. If we don’t establish deadlines and decide who will do these tasks, then the objective simply becomes a dream, one that never gets completed.

What can you do if you follow these steps? Anything you set your mind to completing!

As I’ve said before, you will likely find new solutions, refine your processes and make additional, positive improvements. I’ll look forward to seeing you at the finish line!

Let’s take your business to the Next Level!

I recently read an excellent article by Julia Ubbenga about “Decision Fatigue” and how it’s impacting a lot of people in their lives. I suspect you know what I am referring to. With all the negative news that surrounds us, it is probably difficult not to be somewhat fatigued… If you are running a business, or even if you are not, you are being bombarded with challenges created by inflation, rising interest rates and sometimes oppressive rules being created by government appointees who have no level of accountability.

If you are getting fatigued with the many decisions and challenges being faced, this article provides us with some insight about what we can potentially do to overcome this. Here is a summary of the author’s thoughts about how to decrease decision fatigue:

1. Simplify your wardrobe – I know this probably sounds silly, but if you look at some of the most accomplished people in society, they don’t appear to spend a great deal of time choosing what they wear every day. Steve Jobs of Apple and many other successful leaders maintain a simple wardrobe and don’t waste time making clothing decisions every day. If you can’t do this, at least select your outfit the night before.
2. Practice a morning routine – Ubbenga states, “Implementing routines and rhythms into your day is key to reducing decision fatigue.” My morning routine includes a workout, meditation, Bible study and usually a walk or run. If I don’t get to complete these tasks, usually due to catching an early morning flight, my day can start out less smoothly. For this reason, I am quite adamant about maintaining this morning routine. I feel that it gets my mind on a more positive track!
3. Reduce clutter in your environment – I know a lot of us have a challenge with this one. I do, too, occasionally. However, the reason I know this is crucial is simply that every time I get my desk organized, I not only feel better, but also tend to be more productive.
4. Apply the Rule of 3 to your “to do” list – Experts in productivity agree that the magic number of priority items on a daily “to do” list is three. You can list 10 items that you want to complete as you end each day, but I believe it is imperative that you then start your day be selecting the three most important ones to complete. For me, part of the answer is learning to say “No.” As my business coach Dan Sullivan states, “Learning to say Yes is what got you out Egypt, but learning to say NO will get you to the Promised Land.” Ask yourself – of these 10 items what three, if they were all I completed today, are most crucial?
5. Slow down your schedule – This is a big one for me. I used to get annoyed when my schedule had to change, normally for reasons beyond my control… However, I have learned to use these changes to my advantage. Maybe I can use them to catch up on a task that I hadn’t completed yesterday or even get a jump on an item that I had planned to do later in the week such as follow up calls. Often, this creates new, positive opportunities for me.
6. Simplify your meal routine – “Studies show that the average American spends 40 minutes per day thinking about food. That’s more than 240 hours (10 days) a year.” Are you kidding me? I find my day is more productive, especially when I’m traveling, if I simplify the process. Give this simplification process a try, and just eat healthy.
7. Ask yourself what decision would be best for your brain – Ubbenga states that “Prioritizing and optimizing brain health will help reduce decision fatigue.” Try asking yourself, when you are facing a decision, “What’s best for my brain right now?” I often ask myself – Is this the best thing/approach for me right now? The more I do this, the better, and less stressful, my decisions seem to become. As the late Wayne Dyer said “Our lives are a sum total of the choices we have made.”

All of these seven points can assist us to reduce “decision fatigue.” While the stress relief of this process is, in itself, beneficial, I think the greatest benefit comes from developing an ability to make better decisions, and that will assist you in getting to “Next Level Thinking!”

The real question is – Why Wait? Start this now, and as I suggested previously, what will happen? Many good things!

Let’s take your business to the Next Level!

I feel very strongly that one of the greatest advances of the Dairy industry during the past ten years has been the introduction of the Dairy Revenue Protection Program, also known as DRP. It has provided producers with a program that can establish a “Floor” under their milk prices by way of Put Options that are purchased on an amount of milk that is determined by the dairyman.

My timing of this information may seem premature, but I only hope I’m not too late with this information. Given the high milk prices we’ve seen in 2022 (& yes, before you remind me that feed costs have been terribly high, I understand that…), is there a point at which we start to negatively impact consumption? I’m pleased that it hasn’t happened yet, but it certainly could, going forward, particularly given that consumers, just like you, are being hammered by rising inflation.

I believe it’s always better to plan ahead on these types of tasks. How does the program work? Essentially, as I said earlier, you are purchasing “insurance” against calamitous milk price drops by acquiring Put Options that place a “floor” under the prices you receive. The premiums for these Put Options are paid for around the 15^th of the month following the end of the quarter(s) of coverage.

If prices drop below your Put Option level established through DRP, you will get paid the difference, minus the premiums you owe. However, you have solid coverage on that portion of your milk against the effects of a disastrous pricing scenario.

On the other hand, what happens if prices increase above your DRP Put Option level? For example, what if you set an $18/cwt floor, and prices increase to $19.50/cwt? Well, unfortunately, your Put Options expire unused, and you do still owe the Put Option premiums 15 days after the period of coverage ends. However, the good news is that the price you received was higher than the coverage level you had set, which means that you should have some extra funds to cover the premium.

Remember, your objective is to provide you with a “Safety Net” against huge price drops. Please think back to the years 2000, 2003, 2006, 2009 and 2015-2018. Wouldn’t it have been great if you could have placed a “floor” under the price of at least a portion of your milk sold? DRP, which I believe can now be used in conjunction with the Dairy Margin Coverage (DMC) program, can protect against serious price fallouts.

If you understand your Break-Even Milk Price Levels & your detailed Costs of Production, this can provide you with a solid framework against serious Cash Flow difficulties. As always, if you measure something, you can understand it. If you understand it, you can begin to control it, and if you control it, you can improve it!

The real question is – Why Wait? Do it now, and as I suggested previously, what will happen? You will provide yourself with solid price insurance. And, that would be excellent!

Let’s take your business to the Next Level!

Recently, I attended the Data & Innovation Summit in Sioux Falls, South Dakota to learn more about technology being developed for the Dairy & Agricultural sectors. It was truly a fascinating event with a great deal of knowledge shared. I would highly recommend that you attend this conference in the future.

One of the best quotes that was presented was from W. Edwards Deming (and, hence, the title, WWDD, “What Would Deming Do?”), who was known as one of the Founding Fathers of Total Quality Management:

“In God we trust. All others bring data.”

W. Edwards Deming

Now, Deming was no ordinary individual, considering his focus on quality management and his 14 Key Principles related to the topic. In fact, he was instrumental in the development of Japanese manufacturing management and their exceptional focus on quality control.

One question proposed by Chip Donatone of IYOTAH Solutions, “Is Data the new oil?” In other words, does it have great value? Of course, as a producer, he added, “If you can’t measure it, you can’t manage it.”

However, what if we could integrate all of the information from your dairy operation into a single dashboard? This is being developed by several companies, including Chip’s firm. Think about the possibilities for your dairy operation of tying in all facets, including, but not limited to, Robotics, your Feed Manager, Breeding Information, your Milk Processor Information, and even your Financial Information. Stay tuned. I may have a tool for this in the near future!

Imagine a bright future for our industry, characterized by forward thinking producers who have developed & implemented tools that have provided them with vastly improved control over their results. That is one of the biggest benefits I see for all of us through the implementation of additional data!

The real question is – Why Wait? Develop this information now, and as I have suggested previously, what will happen?

You will likely find new solutions, refine your processes and make further improvement. That, my friends, is a positive thing!

Let’s take your business to the Next Level!

Recently, I read an excellent article from Dave Ramsey, CEO of Ramsey Solutions about the correlation between the current financial stress being caused by rising inflation and people’s mental wellbeing. It led me to conclude that my Clients are facing the same challenges, perhaps on an even larger scale, as business owners…

Dave pointed out that costs are definitely rising and, as a result, so is the stress level among people all over the country. Wow, I thought, we are seeing this first hand with the dramatic rise in commodities & fertilizer in agricultural operations, to say nothing of labor & fuel costs being at all-time highs!

And then he made my day by saying the same thing I’ve been sharing with Clients for the last 24 years! “Having worked with people in financial stress for 30 years, my team and I have figured out that there’s more anxiety from the unknown than from the bad news. It’s a weird thing, but when you write items down, they no longer have the same power over you. What this means right now, in this discussion, is sitting down and doing a budget and looking at everything, no matter how difficult or unpleasant the facts are right now, and no matter who caused the problem at hand.”

I am so thankful for Dave Ramsey’s statement. I have been pushing Clients in this one area for many years. You will recall that I’ve said numerous times previously that if you measure something (in this case your Budget or Cash Flow), you can understand it. If you understand it, you can begin to control it, and if you control it, you can improve it! Additionally, though, I think Dave Ramsey makes an excellent point, and that is this: If you have a clearer understanding of your Budget position, whether it is positive or negative, it holds less power over you, i.e., your life is less stressful.

Now, that doesn’t change the fact that if you are losing money every month, you need to start taking action, because, as my Business Coach Dan Sullivan says, “All progress begins with telling the truth.” Then, once you know what the facts are, you need to build a plan to overcome your challenges. Identify your major obstacles, select potential courses of action to take to overcome them, and then build a plan to implement these steps.

These steps will undoubtedly lead to items you need to change. Don’t resist these changes. Remember the definition of insanity, doing things the exact same way and expecting different results… As author John Delony suggests, “connect with someone for an outside perspective, make a list of the things you can control and the things you cannot control,” and get after the items that you can control, because, as Dave Ramsey points out, “When you control the controllables – that’s when your hope starts coming back.”

What will happen? You will probably identify new financial solutions, refine your processes and make continual improvement. What could be wrong with that? Nothing! If I can assist you with this process, please let me know!

Let’s take your business to the Next Level!