In the last year, Success Strategies has helped us streamline our business. We now know where we are financially at all times, allowing us to make better decisions on our operation.
Archive for April, 2010
Use the following questions on the financial analysis of your business. The first question, “What is our current performance?” In the area of finance, we would naturally consider measures such as profitability, cash flow and debt service coverage. Many of us study expense items when our revenue is lower, as in 2006. I would challenge you to review these line items in the good times as well. It is easy to let costs slip upward when there is less downward pressure on milk prices and cash flows.
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April 2010 Issue
Published by John Ellsworth,
© Success Strategies, Inc.
Sounds like a given doesn’t it? However, it has been my observation that those producers who do the best job of mastering the feed acquisition game seem to be the ones that thrive financially, year in and year out. Since feed, as an expense, can consume 50-60% of your total revenue, it is crucial that you manage its cost as if your business depended on it because, in reality, it very well might. If there was one lesson we all learned in 2008, it was that we have entered a new world where speculation in the commodity markets can force a new trend that impacts every producer. In spite of having record high corn crops the past several years, the dairy industry was treated to a new and less than “user- friendly” corn market. Unfortunately, as corn goes, so goes the price levels of most other commodities and feed crops.
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