Category: Planning & Management

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 […]

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Predicting Drought

fortune teller

What would the value be in your operation if you could predict drought? I know we can’t predict the weather, but we can keep track of monthly rainfall. Rainfall is going to be a darn good predictor of forage growth. In addition to rainfall, we can also keep track of monthly livestock head counts and […]

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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. […]

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RFP Successes

ranching for profit school

The Ranching for Profit School is sometimes called the “MBA of Ranching” or referred to as “better than college.” The RFP School has an amazing curriculum that can have enormous impacts on the alumni and their ranches, but I don’t like those comparisons. Here’s why: you will hear and interpret things differently in each stage […]

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Too Many Options

convenience store

We’ve always heard that having options is a good thing. Having options gives us the freedom to choose what is best for us. However, having too many options can feel chaotic and be crippling. When we have so many options, we actually tend to choose nothing. We look at the minor gain to our businesses as not worth […]

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Assets, Liabilities and Opportunities

pair of ranchers

In a discussion about succession and estate planning at the Ranching For Generations course earlier this year, a woman told me that she believed “we should leave our kids opportunities rather than things.” I think she’s right. Unfortunately, we often mistake things, for opportunities.  The classic example is leaving the ranch to your children so […]

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Repairs Save Money?

horse fence

Preventative maintenance on the ranch is easy to overlook, and it can be costly. Costly in dollars to actually fix whatever needs fixed whether it is fence and corrals, water tanks, or the farm machinery. As well as costly in finding the time which is nearly impossible; but why hire someone to do something that […]

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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 […]

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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 […]

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Working Backwards

Planning Backward

One of Stephen Covey’s seven habits of highly successful people is to “start with the end in mind.” We use this a lot at our Ranching for Profit School, particularly during the evening coaching sessions when students are preparing their economic numbers. The Ranching for Profit economic model breaks down a business into gross margins […]

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