Open Letter To All Farmers #7
What I keep telling farmers repeatedly over the years is the fact that they must take farming as a business if they really want to make a success of it. It is good to know and embrace the technical aspect of farming, but this should not be done neglecting the knowledge of business principles. Farming is a business like any other business. The application of business principles will help a serious farmer to really make good money in farming.
For example, take the business principle of making profit in business. We all know that the first rule in business is to make profit. Any farmer that is mindful of this from the start will work intelligently towards making profit no matter what. The farmers that know the importance of value creation and cleverly manage his farm in line with this principle will make a success of farming. These kinds of farmers will know that producing high quality products will always make them stand out among numerous farmers.
Effective people management is another business principle that must be embraced by farmers for optimal results. Some farmers know how to manage production in their farms, but lack the ability to manage their workers effectively. This will not work in the long run. Rapid employees’ turnover has limited the growth of many farms. Farmers should know that people management is critical to getting great results in farming business.
Another business principle that many farmers are not watching closely is effective customer management. Farmers should know that whatever they produce must end up with the consumers before they can succeed. This means that a serious farmer should set up an effective system to handle his farm products customers well. Those farmers that are good in handling their customers always do well in farming.
The business principle of training workers constantly is also very important. Unless you continually build the capacity of your workers through on the job and outside training, you cannot get the best of them to maximize your productivity and profitability in your farming business. The simple fact is that workers cannot give what they don’t have.
In conclusion, farmers today should know that farming business is no more like the past. The scenario has changed drastically. The farmers that really want to scale up should start applying relevant business principle into their farming business.
You will succeed!