If I put the term “opportunity costs” in the title of this article most people would roll their eyes and move on. But if you want to make more money, pay attention.
I don’t remember my first day of school. Mom didn’t record it on her iPhone. (The iPhone wouldn’t exist for another 45 years.) I suspect I was mostly in shock, overwhelmed by the new surroundings, the new people, the new rules, etc.
What would you have to do to increase profit in a business where you couldn’t control costs? You’d have to increase production per animal, increase the number of animals you carry and hope for higher prices. These are the strategies most ranchers have followed, and Universities have recommended, for generations.
Your computer keyboard is called QWERTY. It is named after the upper left row of letters on the keyboard. Why was the QWERTY configuration used?
Consultant and RFP School graduate Burke Teichert wrote an article for Beef Magazine he called seven “what if” questions every rancher should ask. RFP instructor Dallas Mount added four questions of his own that every rancher should ask…and answer.
There are three, and only three, ways to increase profit in any business. Stan Parsons called them The 3 Secrets For Increasing Profit™ and introduced them to Ranching For Profit students in 1980.
Good people? What’s that supposed to mean? Compared to what? Bad people? With the exception of the Hillside Strangler and Jack the Ripper, I’m hesitant to label very many people as “bad.”
I often hear employers complain that it is hard to find good help. I rarely hear them ask how they can be better bosses. Personally, I think most people want to do a good job. I don’t think employees want to be inefficient or wreck equipment. Why then do we have such a hard time finding and keeping highly effective employees?
You might be ranching for profit if your spouse doesn’t have to work in town so you can have health insurance.
If you are making a profit you ought to be able to pay yourself whatever it would cost to replace yourself and the business ought to be able to provide a benefits package, including health insurance.
A young rancher needed to increase turnover and was preparing a bid for a large lease. When he discussed his proposal with his Executive Link board he explained, “I don’t want to come off as too inexperienced. I don’t want him to think that I don’t know what I’m doing.” Someone on his board offered some great advice.