John Ellsworth has been very effective in assisting our dairy farm in cutting costs in some key management areas. His company, Success Strategies, is correctly named as he is persistent and diligent in showing us key areas we need to work on.
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.