Category: Economics & Finance

Power of Management

calculations

A couple of weeks ago, I received a nice note from an alumnus of the Ranching for Profit School. He tracks his net worth annually by looking at his balance sheet and has been doing this for some time. You need to be careful when looking at net worth from the balance sheet in isolation, […]

Read More

Fix the Cow Business Before You Sell ‘em

calf cow

Somewhere along the line Ranching for Profit has gotten a reputation for being the “sell your cows school”. I want to push back against that. I hope that Ranching for Profit is the “let’s build the business that you want and is profitable school.” I’d hate to think that someone comes to our Ranching for […]

Read More

Cattle Profits and Taxes

Profits and Taxes

During the Ranching for Profit School, we introduce three issues involving money: economics, finance, and income taxes. We spend most of our time on economics (generating value and keeping profit) then some time on finance (cash flow and investment), and less time on income taxes. The reason for that order is based on the overall […]

Read More

Access to Cash Creates Opportunities

cash calculation

This fall it has been energizing to engage with hundreds of ranch business owners from across North America through the Executive Link Program we lead, as they tackle tough challenges and exciting opportunities in their businesses. At our fall Executive Link (EL) meeting we do a ½ day continuing education program. This time John Haskell […]

Read More

Think Beyond Profit

meeting profit

Congratulations! You’ve just come through record cattle prices, you took Dallas’ last ProfitTips to heart, and now you’re sitting on a pile of money and wondering “what now?” There are many negative paradigms surrounding money, not only within agriculture, but within our society. Those paradigms have limited our ability to discuss money freely and openly. […]

Read More

Don’t Screw Up the Windfall Profits

fancy steer

2023 is shaping up to be a record profit year for many in the cattle business. I know not everyone is participating as there are regional droughts and specific situations for some, that will take you out of this opportunity. Nevertheless, for some the stars have aligned.   The last time we saw record profits in […]

Read More

Business is a Noble Endeavor

sheep sunrise

Last week I along with Jordan Steele and a few RFP alumni attended the EntreLeadership Summit put on by the Ramsey organization in Nashville, Tennessee. It was an amazing week hearing from world-class thought leaders and business trailblazers. Dave Ramsey gave a presentation called The Nobility of Business. His point was that so many condemn […]

Read More

Lagging vs Leading Indicators

indicators

“When we choose the wrong measurement, we get the wrong behavior” (James Clear, Atomic Habits). At the Ranching for Profit School, we talk about how paradigms, actions, and results are related to ranching. These concepts look hard at why the business does what the business does.  First let’s talk about money. A very common financial […]

Read More

Benchmarks are Overrated

benches

At the Ranching for Profit School, we teach people how to use benchmarks to identify deadwood in their businesses which allows them to find focus areas for managerial leverage. When we finish teaching the benchmark section participants are excited to run their numbers in the RFP format and compare them to the RMC Benchmarks to […]

Read More

Is Opportunity Interest, Real Interest?

opportunity interest

An opportunity cost is the lost benefit of choosing a different option. The opportunity cost of going to college is losing out on four years of wages; the true cost is tuition plus lost wages.  At the Ranching for Profit School, we include opportunity interest as a cost on owned livestock herds, because there is […]

Read More