What? We Have No Money?

This was the initial statement a Client made when I asked him how his cash flow was looking. Yet, was that really true, or was it a self-fulfilling prophecy, based upon our current market news? After all, this conversation happened in early 2026, a truly bleak time in the dairy industry…

More significantly, he said he felt like he was always playing “catch up.” If you feel the same way, do you know why? As I have stated in the past, if you measure your cash flow, you will better understand its components. If you understand them, you can gain control over them, and, of course, if you have better control over these variables, you can improve them.

Having a firm grasp over these Revenue and Expense items can make an immense difference in your outcome. Once you know and understand all of these, you can set new objectives for your business. Some examples might include paying all your Accounts Payable by the 10^th of the month, keeping your loan payments all current and completing monthly measurement of your YTD Financial Results every month.

Some may say, “What good is that if I’m short of money?” I would suggest that these measurements are still quite valuable. As the saying goes, “the best way to get out of a hole is to stop digging.” This type of measurement can help you identify expense items that need reducing. However, your expenses may be completely in line with industry standards.

If that is true, then you might need to identify additional sources of revenue. In my Clientele, I have companies that have rental spaces generating funds, several who sell methane captured from their dairy, and some who market dairy heifers in excess of their replacement needs. What areas do you need to consider for added revenue or lower expenses? Set this thinking as a new goal for your operation. You won’t regret it.

“Don’t wait on perfect conditions for success to happen; just go ahead and do something.”

Dan Miller

Let’s take your business to the Next Level!