How to protect your farm enterprise
My goal is to protect your farm
You may think insurance is your risk management plan; however is SCIC going to run the combine if you get injured? We must take into account operational and financial risk areas as well to protect the continuity of your enterprise. The common thread of all areas of risk is communication.
Lack of communications has been the cause of 60% of all family business transition failures; lack of communications breaks down trust.
How do we communicate better; or even in times when we can't? We make a plan. A living document that we update as things evolve. An essential, practical and thorough communications plan to help you share what you want and need done on your farm. And I want to help you.
It's time we talk about the things that could go wrong (and some will be harder than others...)
Financial Risk: from drought to markets and any event that affects your revenue. It's not if, it's when these events occur and how we thrive during them. My goal is that your farm is covered. Running scenarios helps owners see how they can protect their bottom-line; remove fear to focus on high-value decision making. There is a cost to protecting your greatest investment, and if done right it will pay you back when you need it most. My advice is "insure the things you can't afford to lose".
Family & Personal Risk: the harder things to talk about...which are not fun, so I'd like to help your family communicate those. We've all asked, "what if I get sick? Or my family gets sick?" What would happen? Do you have a will? Is it updated? What kind of stress could you alleviate for your family by being prepared? You can't anticipate everything but the more you talk about it; the easier it is to think and plan in practical terms about what you might do.
External Resources: we need to know who we can rely on to be there for us we need to ask permission first. Ask your neighbour/parent/child if they would help if something were to happen. We will design the "neighbourhood plan" to solves who helps and when. We will list your top contacts, from Advisors to Accountants, Suppliers to Agronomists, Lawyers and POA". Imagine if you had to go to the hospital in the middle of the season; this will keep everyone on your farm moving forward because your plan was communicated.
The Operational Plan: These are all things we need to communicate. Do you have a written seeding plan? What are the fertilizer blends? What are the roles and responsibilities of each team member? Who takes on leadership and middle management roles; what are the harvest goals; when is grain to be delivered or picked up; what reports have to be completed; what are the goals for the year?
Team Dynamics: these are all the things we want to communicate. Relationships are the fabric of the farm. The "anticipatory grief" with the uncertainty of COVID, takes the focus away from the positive to the negative, which can make it difficult to think straight. Observe your stress levels (rate them out of 10). Focus on small wins and show appreciation. Thank people for who they are, not what they did, speak to their character, it is a supreme sign of respect. For example, when your employee goes above and beyond and runs the drill later so you can sleep longer; say, "thank you for your great work ethic" over "thanks for going late". Thank your family for their support and help; as we all need healthy relationships right now more than ever before.
I want you to think about how important this planning process is for your short and long term. How important is it to you to be prepared in your business, family, and ultimately your livelihood? You can start today; call or reply and let's get the priorities written down asap; then we will set a deadline to complete and we can refine throughout the season.
I guarantee you and your family will have peace of mind and clarity by knowing you are prepared and all we have to do is communicate the right things.
Danielle