Of Rear-View Mirrors and Directional Signals: Building the Foundation
11/17/2023
Working hard is the hallmark of any industrious and ambitious person, no matter the industry in which they toil. Without ambition and a determined attitude to prevail against all odds (and not excluding a copious amount of sweat and tears, and, yes, likely some blood), no amount of business acumen will make up for sloth.
Many things beyond these statements contribute to the success or failure of any enterprise. Not to diminish or overstate any attribute or factor affecting an enterprise’s capabilities to prosper, it is of paramount importance to start with the basics of building a business.
A business plan – Failing to plan is planning to fail. Yours truly needs to get first in line for punishment in this regard. Looking back over the years, I must honestly admit to failing to adequately plan a business enterprise for an even modest chance of success.
However, hindsight is 20/20. Failing is not the ultimate failure. Not getting back up, learning from the experience and trying again with the lessons learned in mind is the ultimate failure.
The Operating Plan is what first comes to mind when we attempt to start an enterprise. We naturally want to build something, grow something, make something. Perhaps we are starting something from scratch (organic, I think, is the new term in vogue) or building upon something already in place, perhaps from generations past.
We must know ourselves, our capabilities and our limitations, our likes and dislikes, and, perhaps most importantly, who we will be working with, for and around on a regular basis. We have to know the endgame, where our work product is going, and who/what/how value creation and acceptance is being measured and enumerated.
The Financial Plan is another key item. So many businesses have inadequate bookkeeping and financial reporting and analysis systems in place to measure, monitor and adjust the operating plan on a timely basis. The rear-view mirror may be the historical, after-the-fact report, but it is critical to spot the weaknesses and shortcomings of operations as well as understanding what has worked well and can be the path to success.
Budgeting and Cash Flow analytics, for the whole enterprise and broken down into parts, is key to building the financial plan going forward. This is what counts. The past is past. You can’t change it, but you can learn from it. The pro-forma analysis, built upon a solid foundation from the past, will work to get you to the next level. One must get through the short-term to get to the long-term. At times, it requires what may look like backing up. Call it repositioning, right-sizing, improvising, whatever. Improvising and adapting is the key to overcoming.
These are the rear-view mirrors and the directional signals one must utilize to assure the opportunity to successfully develop, grow and prosper a farm or any other business endeavor.
A farm is a business, just as much as any other business endeavor. A shoe store on Main Street USA is a business. The goal of any business owner is to grow, make a profit and build long-term wealth and prosperity, hopefully for generations to come.
These are just some aspects of building a successful enterprise. Many other factors must be studied, analyzed and put in the proper place in the business plan.
I add, as an aside, that these principles are equally attributable to personal finance and growth, apart from owning a business. Wage and salary earners should focus on these attributes as well.
Work hard.....Play hard.....Enjoy the Ride......
***********************************
This article is the opinion and perspective of the author and may or may not be consistent with those of other ASAC Members. Endorsement of specific items mentioned in the article is not an endorsement of the individual, the company or the organization from which it originates. ASAC as an organization does not advocate opinions or positions on issues.
Pete Weisenberger
Weisenberger Agricultural Services, LLC
pete.weis0956@gmail.com
Working hard is the hallmark of any industrious and ambitious person, no matter the industry in which they toil. Without ambition and a determined attitude to prevail against all odds (and not excluding a copious amount of sweat and tears, and, yes, likely some blood), no amount of business acumen will make up for sloth.
Many things beyond these statements contribute to the success or failure of any enterprise. Not to diminish or overstate any attribute or factor affecting an enterprise’s capabilities to prosper, it is of paramount importance to start with the basics of building a business.
A business plan – Failing to plan is planning to fail. Yours truly needs to get first in line for punishment in this regard. Looking back over the years, I must honestly admit to failing to adequately plan a business enterprise for an even modest chance of success.
However, hindsight is 20/20. Failing is not the ultimate failure. Not getting back up, learning from the experience and trying again with the lessons learned in mind is the ultimate failure.
The Operating Plan is what first comes to mind when we attempt to start an enterprise. We naturally want to build something, grow something, make something. Perhaps we are starting something from scratch (organic, I think, is the new term in vogue) or building upon something already in place, perhaps from generations past.
We must know ourselves, our capabilities and our limitations, our likes and dislikes, and, perhaps most importantly, who we will be working with, for and around on a regular basis. We have to know the endgame, where our work product is going, and who/what/how value creation and acceptance is being measured and enumerated.
The Financial Plan is another key item. So many businesses have inadequate bookkeeping and financial reporting and analysis systems in place to measure, monitor and adjust the operating plan on a timely basis. The rear-view mirror may be the historical, after-the-fact report, but it is critical to spot the weaknesses and shortcomings of operations as well as understanding what has worked well and can be the path to success.
Budgeting and Cash Flow analytics, for the whole enterprise and broken down into parts, is key to building the financial plan going forward. This is what counts. The past is past. You can’t change it, but you can learn from it. The pro-forma analysis, built upon a solid foundation from the past, will work to get you to the next level. One must get through the short-term to get to the long-term. At times, it requires what may look like backing up. Call it repositioning, right-sizing, improvising, whatever. Improvising and adapting is the key to overcoming.
These are the rear-view mirrors and the directional signals one must utilize to assure the opportunity to successfully develop, grow and prosper a farm or any other business endeavor.
A farm is a business, just as much as any other business endeavor. A shoe store on Main Street USA is a business. The goal of any business owner is to grow, make a profit and build long-term wealth and prosperity, hopefully for generations to come.
These are just some aspects of building a successful enterprise. Many other factors must be studied, analyzed and put in the proper place in the business plan.
I add, as an aside, that these principles are equally attributable to personal finance and growth, apart from owning a business. Wage and salary earners should focus on these attributes as well.
Work hard.....Play hard.....Enjoy the Ride......
***********************************
This article is the opinion and perspective of the author and may or may not be consistent with those of other ASAC Members. Endorsement of specific items mentioned in the article is not an endorsement of the individual, the company or the organization from which it originates. ASAC as an organization does not advocate opinions or positions on issues.
Pete Weisenberger
Weisenberger Agricultural Services, LLC
pete.weis0956@gmail.com
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