If you are running a dairy operation this year, your Cash Flows are probably suffering. Most dairies are struggling with cash flow. If you are not, be thankful. You are truly living a charmed life right now.
As we look at this year’s cash flow challenges, I believe it is worth repeating that if you measure something, you can understand it better. If you understand it, you can control it. And, finally, if you can control it, you can improve it. The same is true for cash flow.
After measuring Cash Flow Results for my clients for almost 18 years, we have noted that all costs are higher, but their Revenues are also higher, providing them with almost identical Operating Margin per cwt. How could this have happened?
I believe the most obvious reason is that they have studied the consistently higher costs of operations, and then made a concerted effort to diversify and create additional sources of business revenue. Have I piqued your interest yet?
I hope so, because if you run a dairy of any size, you can improve your cash flow results, even in a year like this, where inflation has had a horrendous impact on costs and feed costs are elevated.
I have recently introduced a system to allow you to measure your dairy operation’s cash flow results. I call it the Success Strategies AdvantageTM, and it is designed to create a budget for your dairy operation, using numbers for your region of the country.
It will also measure your actual results against this budget and illustrate where you should focus to make additional improvements, i.e. the areas where you are “over budget.” It will also provide you with crucial Break-Even levels for production per cow per day, feed costs per cow per day, milk price per cwt, and feed costs per cwt. These items can be crucial in setting your Price Levels in the Dairy Revenue Protection or Dairy Margin Coverage programs. I want to help you improve the Net Cash Flow of your operation.
Please check out the Success Strategies Advantage™ software today at www.success-strategies.com today.
Let’s take your business to the Next Level!