Ranch

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Ranch Dollar and ene
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Where are you headed?

• Will you be the first to know when you have
  arrived?

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• Whats your vision of the future of your
  operation?

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Vision

• What you would imagine your business to be under
  the best of circumstances.

Its a statement that declares what you expect
your business to become
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• Attractive Future
• Represents a Target
• Attainable
• Realistic
• Credible

Example Beef produced on High Noon Ranch will
represent the protein of choice by American
consumers
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Are you on a Mission?

• Every business should be!

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What is your mission?

• Mission Defines an organization and its
  function. A mission statement gives a farm/ranch
  an identity by defining its purpose.

?Describes what will be done to fulfill the
vision
?Commitment to action
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Mission

• Example
• High Noon Ranch chooses to raise and market
  fed cattle through a vertically coordinated
  alliance that responds to the demands of the
  consumer.

?Defines the business in which the ranch is
engaged
?Need to satisfy the consumer
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Where is your business plan?

• Plan Outline
• 1) Company Overview
• a.) Vision
• b.) Mission
• c.) Guiding principles

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Plan Outline

• 2) Market Opportunity Analysis
• A.) Economies
• 1) International Economy
• a.) Debt
• b.) Unemployment
• c.) Expectations

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Plan Outline

• 2) Market Opportunity Analysis
• A.) Economies (continued)
• 2) Domestic Economy
• a.) CPI and consumer confidence
• b.) Unemployment
• c.) Expectations

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• 2) Market Opportunity Analysis A.) Economies
  (continued)
• 3) Farm Economy
• a.) Commodity Supply Demand
• b.) Prices
• c.) Agribusiness profitability
• d.) Local, state, national, world
  competition
• e.) Financial health
• f.) Land prices

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• 2) Market Opportunity Analysis
• B.) Market Analysis
• 1- Size and number of farms
• 2- Industry life cycle
• a.) Introduction
• b.) Growth
• c.) Maturity
• d.) Decline
• 3- Competition
• 4- Customers
• 5- SWOT

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• 2) Market Opportunity Analysis
• C.) Marketing Goals/Objectives
• 1- Goals, objectives, strategies,
  tactics
• 2- Commodity mix
• 3- Promotion

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2) Market Opportunity Analysis D.)
Implementation Controls, Measuring and
Monitoring 1- Organizational Structure 2-
Operations 3- Risk Management 4- Records
and Controls
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2) Market Opportunity Analysis E.) Financial
Forecasts (5 years) 1- Assumptions 2- Net
Farm Income 3- Cash flow 4- Proforma
balance sheet 5- Net Present Value 6-
Graphs charts
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Executive Summary

• Contains the important information from each
  outline category

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Farm Plan

• Done correctly, it will take time (no pain, no
  gain)

• Reality check and road map to future

• Guidance system through difficult times

• Nearly eliminates the probability of
  
  
  
  misunderstanding businesss future

• Minimizes conflict

• Incorporate values and morals

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Goals

• ? Is an end toward which one directs some
  specific effort

? Why goals?
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Why Set Goals?

• Serve as a benchmark to measure success and
  levels of performance
• Establish a sense of direction that is necessary
  for growth and success
• Written goals can be reviewed by others to ensure
  each element of the goal is included

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People who set goals

• Suffer less stress anxiety
• Concentrate better
• Show more confidence
• Perform better
• Happier with their performance
• Improved teamwork

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SMART Goals

• S pecific
• M easurable
• A ction-oriented
• R ealistic
• T ime and resource constrained

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Example SMART Goal

• Learn about price risk management strategies and
  use one price risk tool by 12/31/00, while
  spending up to 1,000.00 for the training.

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Success

• Individual ? Decisions ? Vision, Mission, Goals

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Vision

• __________________________________________________
  __________________________________________________
  __________________________________________________
  ______________________________

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Mission

• _________________________________________________
  __________________________________________________
  __________________________________________________
  _____________________________________

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SMART Goals

• _________________________________________________
  __________________________________________________
  __________________________________________________

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Build A Team

• Establish Goals
• Define expectations of personnel
• Allow for mistakes, create a plan to minimize
  them
• Evaluate company, team, and personal goals
• Always be positive!
• Do teaming activities
• Hire coachable employees

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Build a Team (continued)

• Allow time for training and personal development
• Recognize personnel for performance
• (ex trips, supper, etc)
• Allow a system of feedback
• (start, stop, continue)
• Commitment and trust are essential
• Have FUN!

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Farm Analysis

• Big is not always better

• Net income is important

• Change in net worth is the key

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Source KFBM, 1993.