Tag Archive for: Planning

When Will You Find Time?

This is a question I recently asked a new Client of mine. Please allow me explain my thought process. During our initial discussions and analysis, we had discovered several areas of his operation that needed some ‘fine tuning.” In other words, they were unintentionally off course in terms of their costs. Please take my word for it. They were way too high, in comparison to other producers.

To provide you with some background, his production was solid, and most of his expenses were admirable in comparison to industry guidelines. However, his Feed Expense and Cost of Supplies were both well above where they should have been. I had originally assumed that they were two separate challenges. However, as it turned out, they were both traced back to a common source.

For years, in an effort to save money, he had used the same Nutritionist from a local feed company. However, while saving the $1,000/month fee of a neutral third-party Nutritionist, he was spending thousands more on Feed Costs. His Supplies expense was also being impacted by the use of some “Pixie Dust” powder that was being added to the calves’ rations. Please don’t ask me why it was included in his Supplies cost. I assume it was placed there as a result of its’ “medicinal benefits…”

Now, understand that any Nutritionist can run into these same challenges and then need to make some changes. The difference here was that his current feed advisor wasn’t willing to make the necessary changes. With the guidance of another Nutritionist, this producer lowered his Feed Cost by $0.40/cwt and decreased his Supplies Cost by $0.10/cwt. Now, this change generated $10,500 of reduced costs per month. After paying the new Nutritionist $1,000 per month, his bottom-line return was still boosted by $114,000 per year.

Now, while the net impact of this change was dramatic, my point is not to pick on his former Nutritionist. This situation could happen with almost any advisor. The significance really revolves about the willingness of this producer to fully analyze these sizeable cost variances and then actually take the steps to improve his results. How much money had he left on the table because he was “too busy” to make these changes? Our industry is one with thin margins in most years. That is precisely why it’s so important to take action today! Do you know the best time to plant an Oak Tree? The best time was 20 years ago, but the second-best time is today.

Going back to the original question, “When Will You Find Time?” your very survival depends upon this type of thinking. Based upon my experiences of the past 22 years, it will make a huge difference. If I can assist you with this analysis process, please contact me at john@success-strategies.com or 209-988-8960.

Why Don’t You Just Go Away?

Hopefully, I caught your attention with this question. Please allow me to explain. Read on & see 3.a. below. Cal Newport in his fantastic book Deep Work defines “Deep Work” as:

 “…the ability to focus without distraction on a cognitively demanding task. It’s a skill that allows you to quickly master complicated information and produce better results in less time. Deep work will make you better at what you do and provide the sense of true fulfillment that comes from craftsmanship. In short, deep work is like a super power in our increasingly competitive twenty-first century economy.”

As you attempt to wrap up 2020 which has, at times, been very challenging, this focus on “Deep Work” becomes very crucial. Here are a couple of questions for you to consider as you strive to finish strong this year:

  1. What items went right this year? We probably all tend to dwell on what items went “sideways,” but think about and write down what went well. Was your production per cow better this year? Could it be, going forward? What’s your profitability look like, especially in light of the CFAP money from USDA? Are your 2020 costs in line? How about Labor costs? Did your 2019 investments pay off? What else would boost efficiencies?
  2. What needs to change? Are there better cost controls you need to put in place? For more on that specific topic, please see my October 14th NLT blog entitled “Why Bother?” Do you need to maximize Labor Efficiency, i.e. become more productive, especially in light of rising labor costs? How about your debt per cow, especially as we consider the strong possibility that, at some point in the future, we will see lower milk prices…? Do we need to decrease your debt levels?
  3. Most important, ask yourself, What’s Next? Treat this like “Deep Work,” because that is precisely what it is. My recommendation includes the following:
    1. Go Away! No, I’m not telling you to get lost. Just simply get away from your everyday distractions and do some “Deep Work” on your business, using the information above as a guideline.
    1. Focus on what, specifically, you want to see next year! Yes, I know it’s only late October or early November as you are reading this, but soon the Holidays will be upon us, and will you find time then? Not likely…
    1. While you are in solitude & focused: What specifically do you want to accomplish next year? Who is involved? What steps do you need to take? By when? Do your proposed changes require some financial analysis? If so, please contact me if I can assist you.
  4. Take the time to focus on this “Deep Work” now. Your future success depends upon it!

If I can assist you with any steps of this process, please contact me at john@success-strategies.com or 209-988-8960.