These days, being a successful producer is so much more than knowing how to fix a tractor and rising before dawn. It’s about having a mind for business and management.
From technician to manager
When operations expand and consolidate, it can be especially difficult for longtime producers to make the leap from technician to manager, says a recent column in Corn and Soybean Digest. And they can fall into the same traps that are familiar to any other manager in any other industry: failing to delegate, being too hands-off and micromanaging (spending too much time in production and not enough on strategy and other big-picture tasks).
Even if your operation isn’t consolidating, you are without a doubt well aware of the pressures to be more efficient. Commodities are low and incomes are down, so producers like you are looking for strategies to increase profits, reduce inputs and achieve consistently high yields. You may be investing in precision tools that bring a high return on investment or reading the literature on the latest developments of genomes or running scenarios off the latest farm bill crop programs. These things all require business management skills.
Here are three steps to improving your business skills.
Embrace the always-learning mindset: The most successful people in business take on a growth mindset. That is, they see learning as a lifelong pursuit. Because farmers are the original entrepreneurs, they can and should take this to heart.
Set aside resources: As a rule, top managers designate a certain amount of time and money toward ongoing learning and betterment. Think about where you can start and come up with some numbers; say, 1 percent of your income and 20 minutes a day. To make it happen, budget it and schedule it.
Start learning: Start looking for resources and opportunities to continue your education. This can be done at the individual level, or in a group setting. College courses are always a sure bet, but here are a few more ideas. Join one of the more than 60 agriculture marketing groups that exist across Minnesota, or start one yourself. These groups are making a comeback, and here, you can meet with other producers to discuss and learn, so you can make a better marketing plan. Or, attend agricultural conventions that emphasize business and management. Finally, ask successful producers to share titles of books that have inspired them.
It’s always smart to surround yourself with the best people. At Minnwest Bank, we’re a step above other lenders in that we’re farmers and producers like you. Ask your Minnwest Bank lender how we can help you create the best cash flow plan to help you cultivate success.