Does your agribusiness have "traction"?

Newsletter #6

Yesterday was officially my last day at the bank. So much has happened since I handed in my notice last month.

From getting my first client to learning how to do all the basic stuff a business owner needs to do… making contracts, setting up payment methods, doing your own bookkeeping etc. etc.

This gave me a new level of appreciation for farmers and business owners and makes me even more motivated to help them take some of the financial and strategic questions away.

I already know there won’t be many dull moments 🌷

This week I want to share a book and system that is very popular in the “online business community”.

It is a system for business owners that:

1. Want to take their business to the next level

2. Feel they can make more profit

3. Hit a 'growth ceiling'

Yet I never seem to hear about it in my farming and agriculture circles– while the complexity of a farm would be perfect for this.

This is my summary. See if it’s right for you:

Traction introduces the Entrepreneurial Operating System (EOS).

The EOS consists of six key parts: vision, people, data, issues, process, and traction.

The idea is that these are the foundational points of any business. Getting a grip on these elements often means you’ll get a grip of your business.

1. Vision:

This chapter is about finding your core values. This will act as your compass to make decisions.

It requires you to:

• Set 10-Year, 3-Year, 1-Year, and Quarterly targets

• Avoid chasing shiny objects

Free template from the book: https://www.eosworldwide.com/vto

This chapter again reminded me of the famous Seneca quote.

I liked this chapter because in farming we often do things because “that’s how we’ve always done them”. This can work. But if you really want to reach your goal– expand the farm, sell the farm or have your children take it over– you’ll need to start making more targeted actions.

2. People:

The next chapter is all about putting the right people in the right seats.

Part of this is to make sure you don’t spend most of your days doing the £15 p/h jobs that take time away from the £100 p/h jobs that need to be done.

But it’ll also help you make your employees happier by giving them the work that fits their skills and goals. Some considerations:

• Even the “superstars” might not be right for their current role

• Make everyone accountable for a real and clear outcome

• You want your employees to share your vision

3. Data:

Now you know where you want to go, and you got the right people to help you, you need to make sure you are actually going there. And without data, that will be very difficult.

• Identify 5-15 key metrics that track your goals

• Watch them closely in a weekly “Scorecard”

This might show you how efficient you are, if money is spent well and how you compare to industry standards.

The point of this is to spot and solve problems BEFORE they come up.

4. Issues:

Issues will come up in any business. And I like how they propose to handle that. It all comes down to this line:

Management spends too much time talking, and too little time solving problems.

• Be honest and transparent; don’t hide your problems

No one benefits from playing the blame game or pointing fingers. This chapter contains the process to get to the bottom quickly and solve them.

5. Process:

Your business won’t reach the next level by keeping all processes in your head.

I’ve heard farmers say before that you can’t “document” the farming process because there is always uncertainty with the weather, the markets and people.

But documenting is not an exact science. No matter what’s going on in the world, bulbs still need to be planted, watered, sorted and get time to grow. Document the fundamental steps, then you can add always add detailed what-if scenarios if you want.

• Documenting ensures no important steps are missed

• Hiring new employees makes a much more pleasant experience

• Documentation will increase your business’ value if you ever want to sell

6. Traction:

The final chapter puts it all together.

It ensures that:

• Everyone will be accountable for their own outcome

• Everyone knows their goals

• Everyone is on the same page

My main takeaway: create accountability.

People love to complete things and to be challenged in their job. If you make everyone accountable for something they can become an ‘owner’ in their own right.

It might be difficult for you to give up this control. But having a clear outcome is always best.

I don’t believe you need to implement everything for this system to add serious value. A book worth picking up.

The most productive thing I’ve done in the months leading up to launching my business was getting on calls with those that have gone before me. The insights they shared with me saved me so much time it’s ridiculous.

So I want to return the favour. I am not saying I am ahead of you. But I might have a different perspective to help your farm forward.

If you want to just have a quick chat and ask me something, just let me know 🌷

Or book a call directly: https://calendly.com/joeydewit/call

Till next week,

Joey