Most new members initially invest 2 to 3 hours week per week for the first month developing their business plan, populating the financial software with data and analyzing their first financial reports.
Thereafter, members tend to spend 1.5 to 2 hours per week recording key data, coding bank statements, conducting market research and keeping files up to date ready for submission at the end of the month. We believe time spent working on your farm business to improve profitability is time well spent.
The data you need to marshal is often already recorded for budgeting, banking and taxation purposes and thus should be reasonably close at hand.
Some additional thought and research will need to be applied to make informed assumptions about future variables.
The key information you need to record and update regularly includes:
Members are required to assign a unique Profit Focused Farming income and expenditure code next to each transactional item on their business bank statement.
This allows us to apportion transactions to various profit centers.
To do this, we use BankLink’s Notes service to provide us with an electronic version of your farm’s bank accounts.
We believe this is a relatively simple process that adds robustness to the financial reports and decision-making.
Profit Focused Farming integrated business management tools can be applied to a large range of farming enterprises, including those with multiple farms.
With all enterprises, the key objective is to continually improve the profitability and value of the farm business.
We view every farm as unique and one of the first steps is to run the numbers and understand the current and forecasted financial performance.
These first financial reports highlight the occurrence of the most profitable farming activities. They also demonstrate where the financial strength and weakness areas are.
At the same time, we also ask new members to reflect on what they want from the farm business and the future, their strengths and what the most important issues are.
Armed with this information we work with members to identify and objectively assess possible solutions that will improve profit.
Once the member has decided a course of action, we then support the member to take action and put it into practice.
Ongoing guidance and support is then provided on a regular basis to assess results and help the member stay focused on critical business issues and get things finished.
This support comes from a personal business coach, mentors and other Profit Focused Farming farming members.
This proven process has been adopted by dairy, sheep, beef and mixed farms throughout New Zealand.
Profit Focused Farming accommodates a full range of farming practices, including breeding.
Our objective is to help farmers establish, using their own information, what farming activities do and do not contribute to profit.
All farming activities, including breeding stock are assessed for comparative current and future profitability.
The type of landscape and prevailing market prices will typically determine whether carrying breeding stock all year is more profitable than other types of farming i.e. finishing or fattening for the store markets. A farmer’s strengths and passion for breeding animals will also be a contributing factor.
We have members who have used sound financial analysis to establish themselves as successful and profitable stockbreeders.
The profit focused farming system is an online service which requires you to be able to access the web to see your reports and monthly results.
It is essential that you have an average level and understanding of computer literacy. You will be required to use the Microsoft Office suite of products especially Excel and Word. You will also need to be familiar with Microsoft Outlook and be able to attach files and send emails.