One strategy I often use, is to sit down and start with a basic Gross Margin analysis of a system. Gross Margins work to separate the income and expenditure associated with a single enterprise. So it takes away the noise of the overall business costs – the fixed costs.
It gives you a chance to see what income is actually being derived from the enterprise. How much came in from all the sales. And then what were the costs. How much was actually spent on inputs for health, sales, transport, feed or those other costs for the program.
When you see that in black and white you get the opportunity to critically check what is going on. Are those inputs needed? Or can you achieve better production through improved management of pastures; changing turn off times or being more focussed on fertility to have more calves on the ground?
At every point ask yourself, are you getting the simple things right? Are you focussing on those things you can control? If you know the answers you can work on becoming a more profitable and productive producer. If you’re not sure where to start, you will probably see the cost of getting some external advice is actually cheaper than a few cents a day that wont fix the long term problems.
