business development

Free Money Can Be Expensive

Letting government programs dictate your management and set priorities can be costly. The most obvious example is probably the emergency feed program. In drought impacted areas, this program incentivizes ranchers not to destock. The result has been severe overstocking during drought, when the impacts of bad management are intensified.

For decades we’ve been encouraged to evaluate the efficiency of production by focusing on weight weaned per cow. Now some are arguing that the critical measure should really be pounds weaned per acre. But neither measure is very useful.

There are two big pieces to the estate planning puzzle: who will run what (management succession) and who will own what (the transfer of assets). In my last ProfitTips column I called management succession the more difficult of the two because it involves judging the competency of people you love and holding them accountable to produce results. It is perceived by the incoming generation as an issue of respect. But the transfer of assets is no cake walk either.

Most people assume that the biggest estate planning fights involve “Who will own what?” It’s been my experience that “Who will run what?” is often a bigger issue. “Who will own what?” is usually a question of perceived fairness. To heirs, “Who will run what?” is a question of  respect.

There are some things that don’t change very much …  there are others that do. Social media for example. Ten years ago had anyone heard of a Social Media Coordinator? But with Facebook, Instagram, YouTube, Twitter, and all of the other things out there, how is anyone, supposed to keep up with it all and still run a business? These are all new tricks and when you are an old dog like me you need help with that stuff. Earlier this month we got help.