where are you headed? will you be the first to know when you have “arrived?”

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Page 1: Where are you headed? Will you be the first to know when you have “arrived?”
Page 2: Where are you headed? Will you be the first to know when you have “arrived?”

Where are you headed?

Will you be the first to know when you have “arrived?”

Page 3: Where are you headed? Will you be the first to know when you have “arrived?”

What’s your vision of the future of your operation?

Page 4: Where are you headed? Will you be the first to know when you have “arrived?”

What you would imagine your business to be under the best of

circumstances.

It’s a statement that declares what you expect your business to become

Vision:

Page 5: Where are you headed? Will you be the first to know when you have “arrived?”

Attractive FutureRepresents a Target

AttainableRealisticCredible

Example: Beef produced on High Noon Ranch will represent the protein of choice by American consumers

Page 6: Where are you headed? Will you be the first to know when you have “arrived?”

Are you on a Mission?

Every business should be!

Page 7: Where are you headed? Will you be the first to know when you have “arrived?”

What is your mission?

Mission: Defines an organization and its function. A mission statement gives a farm/ranch an identity by defining its

purpose.

Describes what will be done to fulfill the vision

Commitment to action

Page 8: Where are you headed? Will you be the first to know when you have “arrived?”

Mission

Example:

High Noon Ranch chooses to raise and market fed cattle through a vertically coordinated alliance that responds to the demands of the consumer.

Defines the business in which the ranch is engagedNeed to satisfy the consumer

Page 9: Where are you headed? Will you be the first to know when you have “arrived?”

Where is your business plan?

Plan Outline1) Company Overview

a.) Vision

b.) Mission

c.) Guiding principles

Page 10: Where are you headed? Will you be the first to know when you have “arrived?”

Plan Outline

2) Market Opportunity Analysis

A.) Economies

1) International Economy

a.) Debt

b.) Unemployment

c.) Expectations

Page 11: Where are you headed? Will you be the first to know when you have “arrived?”

Plan Outline

2) Market Opportunity AnalysisA.) Economies (continued)

2) Domestic Economy

a.) CPI and consumer confidence

b.) Unemployment

c.) Expectations

Page 12: Where are you headed? Will you be the first to know when you have “arrived?”

2) Market Opportunity Analysis A.) Economies (continued)

3) Farm Economy

a.) Commodity Supply & Demand

b.) Prices

c.) Agribusiness profitability

d.) Local, state, national, world competition

e.) Financial health

f.) Land prices

Page 13: Where are you headed? Will you be the first to know when you have “arrived?”

2) Market Opportunity AnalysisB.) Market Analysis

1- Size and number of farms

2- Industry life cycle

a.) Introduction

b.) Growth

c.) Maturity

d.) Decline

3- Competition

4- Customers

5- SWOT

Page 14: Where are you headed? Will you be the first to know when you have “arrived?”

2) Market Opportunity Analysis

C.) Marketing Goals/Objectives

1- Goals, objectives, strategies, tactics

2- Commodity mix

3- Promotion

Page 15: Where are you headed? Will you be the first to know when you have “arrived?”

2) Market Opportunity Analysis

D.) Implementation Controls, Measuring and Monitoring1- Organizational Structure2- Operations3- Risk Management4- Records and Controls

Page 16: Where are you headed? Will you be the first to know when you have “arrived?”

2) Market Opportunity Analysis

E.) Financial Forecasts (5 years)1- Assumptions2- Net Farm Income3- Cash flow4- Proforma balance sheet5- Net Present Value6- Graphs & charts

Page 17: Where are you headed? Will you be the first to know when you have “arrived?”

Executive Summary

“Contains the important information from each outline category”

Page 18: Where are you headed? Will you be the first to know when you have “arrived?”

Farm Plan

• Done correctly, it will take time (“no pain, no gain”)

• Reality check and road map to future

• Guidance system through difficult times

• Nearly eliminates the probability of misunderstanding business’s future

• Minimizes conflict

• Incorporate values and morals

Page 19: Where are you headed? Will you be the first to know when you have “arrived?”

Goals

Is an end toward which one directs some specific effort

Why goals?

Page 20: Where are you headed? Will you be the first to know when you have “arrived?”

Why Set Goals?

• Serve as a benchmark to measure success and levels of performance

• Establish a sense of direction that is necessary for growth and success

• Written goals can be reviewed by others to ensure each element of the goal is included

Page 21: Where are you headed? Will you be the first to know when you have “arrived?”

People who set goals

• Suffer less stress & anxiety

• Concentrate better

• Show more confidence

• Perform better

• Happier with their performance

• Improved teamwork

Page 22: Where are you headed? Will you be the first to know when you have “arrived?”

SMART Goals

• S pecific

• M easurable

• A ction-oriented

• R ealistic

• T ime and resource constrained

Page 23: Where are you headed? Will you be the first to know when you have “arrived?”

Example: SMART Goal

Learn about price risk management strategies and use one price risk tool by 12/31/00, while spending up to $1,000.00 for the

training.

Page 24: Where are you headed? Will you be the first to know when you have “arrived?”

Success

Individual Decisions Vision, Mission, Goals

Page 25: Where are you headed? Will you be the first to know when you have “arrived?”

Vision

____________________________________________________________________________________________________________________________________________________________________________________

Page 26: Where are you headed? Will you be the first to know when you have “arrived?”

Mission

__________________________________________________________________________________________________________________________________________________________________________________________

Page 27: Where are you headed? Will you be the first to know when you have “arrived?”

SMART Goals

_____________________________________________________________________________________________________________________________________________________

Page 28: Where are you headed? Will you be the first to know when you have “arrived?”

Build A Team

• Establish Goals• Define expectations of personnel• Allow for mistakes, create a plan to minimize

them• Evaluate company, team, and personal goals• Always be positive!• Do “teaming” activities• Hire “coachable” employees

Page 29: Where are you headed? Will you be the first to know when you have “arrived?”

Build a Team (continued)

• Allow time for training and personal development

• Recognize “personnel for performance”

(ex: trips, supper, etc…)

• Allow a system of feedback

(start, stop, continue)

• Commitment and trust are essential

• Have FUN!

Page 30: Where are you headed? Will you be the first to know when you have “arrived?”

Farm Analysis

• Big is not always better

•Net income is important

•Change in net worth is the key

Page 31: Where are you headed? Will you be the first to know when you have “arrived?”

Gross Net Net Farm % ReturnFarm Farm Income on Mgmt. Mgmt.

Farm Returns Income % of GFR Investment Returns %1 45027 -15381 -34.2 -9.9 -50,892 -1132 67483 20924 31 6.7 -85 -0.13 69290 23275 33.6 8.4 -884 -1.34 75225 12139 16.1 -0.7 -8,447 -11.25 82674 8301 10.0 -0.4 -29,967 -36.26 84961 31880 37.5 3.8 11,199 -13.27 91533 21130 23.1 -1.2 36,136 -39.58 105055 4174 4.1 -1.1 34,272 -33.69 108324 22887 21.1 8.7 -1015 -0.9

10 155874 63025 40.4 25.9 27439 17.611 228133 115003 50.4 43.6 79845 35.012 354451 62025 17.5 7.3 -2486 -0.713 397105 72367 18.2 8.2 1,540 0.4

Gross Net Net Farm % ReturnFarm Farm Income on Mgmt. Mgmt.

Farm Returns Income % of GFR Investment Returns %1 45027 -15381 -34.2 -9.9 -50,892 -1132 67483 20924 31 6.7 -85 -0.13 69290 23275 33.6 8.4 -884 -1.34 75225 12139 16.1 -0.7 -8,447 -11.25 82674 8301 10.0 -0.4 -29,967 -36.26 84961 31880 37.5 3.8 11,199 -13.27 91533 21130 23.1 -1.2 36,136 -39.58 105055 4174 4.1 -1.1 34,272 -33.69 108324 22887 21.1 8.7 -1015 -0.9

10 155874 63025 40.4 25.9 27439 17.611 228133 115003 50.4 43.6 79845 35.012 354451 62025 17.5 7.3 -2486 -0.713 397105 72367 18.2 8.2 1,540 0.4

Gross Net Net Farm % ReturnFarm Farm Income on Mgmt. Mgmt.

Farm Returns Income % of GFR Investment Returns %

1 45,027 -15,381 -34.2 -9.9 -50,892 -113.02 67,483 20,924 31.0 6.7 -85 -0.13 69,290 23,275 33.6 8.4 -884 -1.34 75,225 12,139 16.1 -0.7 -8,447 -11.25 82,674 8,301 10.0 -0.4 -29,967 -36.26 84,961 31,880 37.5 3.8 11,199 -13.27 91,533 21,130 23.1 -1.2 36,136 -39.58 105,055 4,174 4.1 -1.1 34,272 -33.69 108,324 22,887 21.1 8.7 -1,015 -0.910 155,874 63,045 40.4 25.9 27,439 17.611 228,133 115,003 50.4 43.6 79,845 35.012 354,551 62,025 17.5 7.3 -2,486 -0.713 397,105 72,367 18.2 8.2 1,540 0.4

Source: KFBM, 1993.