3 Things to Consider if you are Going Through a Cash Flow Crisis
Sep 01, 2023
What a difference a year can make.
From record prices, and one of the largest appreciations in farmland we have ever seen, to high input costs, with many areas now facing drought and lower commodity prices.
That is farming!!!
There are three things to remember if you are feeling stressed from all of this:
ONE – It won’t last. Just like great times, the bad years also won’t last. It always has and always will turn around. It’s just patience. Be careful getting caught up in something you can’t control. For example, it won’t do you any good stressing because you have not received any rain. The best thing to do is stay focused and present. Take one day at a time. Be very careful allowing yourself to become a victim.
TWO – You are your greatest asset. Use these times to upskill, learn, and get creative. It’s amazing what you can create when you work on yourself and invest in new skills. Keep reading, learning, and doing courses. Education and mentoring have the ability to open you up to new ideas and skills, and more often than not this can lead to new opportunities. Great companies are made in tough times.
THREE – Double down on your financial management. Update your budgets, review your financial model, get to know your numbers, look at your business model to make sure its strong enough, and get help in this area if you are unsure. Understanding what is coming in versus going out is more important in a cash shortage situation. Having an updated budget that you refer to at least monthly (for some it needs to be weekly) is more important now, and really knowing your business will help you make the right decision to see you through these tougher times.
And remember IT WON’T LAST.
Robbo & The Farm Owners Academy Team
P.S. Stories from the Farm: Hear how Adam and Benita were able to work on their financial management after a bad drought and create a great farm.
