Farmers need to focus
“I run around and do 1,000 things in one day and then feel like I get nothing done,” is a common phrase for modern day farmers.
We spend our days working IN our business, instead of working ON our business.
There is a big difference. Let’s equate it to dollars.
Farmers who work IN the business doing the day to day items that could be hired out, spend their days doing the $10-15 hour work. As the owner of your farm operation your time is worth a heck of a lot more than that!
Farmers who work ON their business spend their days doing the $200-$400 per hour work, such as making major financial decisions, creating strategic relationships that open up opportunities, strategizing for the future and systemizing their operation to run as efficiently as possible.
The question is, how do we get to that point where we are working ON our business, instead of IN our business? Great question. The first step is to figure out what your hourly rate is.
How do we calculate this? Take the total revenue that you generate for your operation or business every year. For example, let’s say it’s $1 million in revenue. Now, take $1 million and divide it by your total hours worked through the year. Let’s say throughout the year a farmer “averages” about 60 hours per week which equates to 3,120 hours for the year ($1,000,000/3120 = $320/hour). That’s how much your time is worth.
The first hurdle to get over is actually accepting the fact that you are worth that much money. For a lot of farmers we are taught to devalue ourselves, meaning if you pay yourself $30,000 per year out of your business then that is all you are worth.
I call bull crap. Why? Because that $1 million in revenue does not exist without you. Period, it’s that simple.
So figure out what you are worth and stick by it! Then, every task that you are currently performing on your operation that you can pay someone else to do for $15-20 an hour, do it! Delegate it!
Your time is much more valuable and you need to be working on the crucial items listed above.
The first step to building any successful business is figuring out exactly where your focus needs to be, and for most farmers right now it’s beginning the process of delegating the $15-20/hour work and spending your time doing the $320/hour work.
I hope this helps.
See you in next month’s column! ❖