Your mind is a powerful thing. The way you see your farm or ranch is the way you will run your operation. If you see it as a hobby, then it is a hobby. But, when you see the business in dirt, sweat, and tears, you have a business. Change your mind, change your life.
Do you have a business mindset?
Let’s take a walk through your office.
Your suit isn’t fresh from the cleaners. Your commute is a walk across the yard. The smell of hay and animals greets you when you open the door. Meetings are with [mostly] silent partners who only have something to say when you arrive with a bag of cubes.
The survival of your business relies on most things that are out of your control: the weather, drought, floods, the market price, the cost of feed. The list is long.
Agriculture is not a glamorous business. But, it is a business.
How did you get here?
Did agriculture catch your interest lately? Have you always had a herd of your own? Did your abundant garden make you realize you have a real knack for growing?
However you arrived at this branch of business, your mind will determine how long you stay in business.
Yes, the profits, the weather, and competition are all things that you may base your business success on, but I’m going to let you in on a little secret.
It’s your mindset that helps you overcome ALL the obstacles you face.
So, how do you get a business mindset?
You don’t have to be a 5th generation entrepreneur to have what it take to run a successful business. Being business-minded isn’t something you are born with, it is something you create on your own.
Let’s create your business mindset with these quick tips.
HOW TO GET A BUSINESS MINDSET
Getting your business mindset is actually pretty easy when you start with this one trick:
Think like a business owner.
That’s it.
Once you realize you have a living operation that is capable of being profitable, you will have a business mindset.
Multimillion-dollar companies don’t have CEOs who go to work when they feel like it. They do the work every day. And, they work like someone else can do it better.
Now, I know your work is going to look different than some other business, but there are so many ways to show up to your business every day. Showing up in these ways will help you see your business with a profitable business mindset.
WHY DO YOU WANT TO DO THIS?
Your mindset controls your outcomes, both good and bad. So, when things are leaning towards the bad side of things, it can be hard to be positive and make good decisions for your business.
Your WHY is a strong motivator. It is the thing you think about when you want to give up. As you determine your ‘why’, you will be able to tell if you are really wanting a business or a hobby.
Knowing what you want will help you make the right decisions for your business and the vision you have for your life. It’s all connected.
SET GOALS
Goal setting is a simple but extremely important way to set your business up to be successful. Your end goal may not be all about the money, but it is important to make sure that making a profit is somewhere on the list for your business.
There is a big difference between having a business and having a hobby. You need to know what it is you want before you confuse the two.
Your business mindset will keep you in check to make sure you aren’t falling into a hobby trap instead of running your business like a business. When you set profit goals, you will be driven by data and not emotion.
Anyone Can Cash a Check
Let’s talk about money.
Start thinking in terms of profits, not just money made. There is a big difference between the two. Your expenses must be subtracted from your sales. Don’t put them in the past just because you have already paid for them.
Your neighbor may tell you he made X amount of dollars from something he sold. But, he’s not telling you the whole story. He may be holding a check for X amount of dollars, but what did he profit? His sale may or may not have covered his expenses to get to that sale. Avoid this common way of thinking.
Remember, businesses make profits, not money.
Master that statement and you are halfway to a successful business mindset.
Bookkeeping is Your Friend
Along the lines of money comes bookkeeping. A successful business owner knows that having a moment by moment account of their business is the only way to know if you are being profitable.
When your books are up to date, you can help to keep your business healthy.
{TxFRS Tip: I recommend outsourcing your books or using QuickBooks. Use this link to get a discount for yourself.}
Here’s another trick to improve your mindset:
Make investments not purchases.
Not every purchase is an investment. When you think like a business owner, you will see what purchases are going to help your business and which purchases will just spend money.
Bookkeeping is time consuming when you are behind. Outsource it or make it one of your daily tasks.
Collect a Paycheck
I read a funny/not-so funny joke about a farmer who was reported to the Labor Bureau for not paying his workers what they deserved. I’ll paraphrase here. Through the story, the owner told the investigator about how well his employees were paid except one. The owner talked about all the work and the hours this “one” employee put in and doesn’t get paid for it. The investigators wanted to talk to “that guy”. Obviously, the owner was talking about himself.
Don’t be this guy. You have to collect a paycheck from your business. I know, there are tons of owners who can’t afford to pay themselves. Listen, if you had to pay someone to do the jobs you do, how much would that cost you?
You have to pay yourself.
Let’s look at it this way.
If something puts you off your feet for a while, how much would it cost you to have someone do your job? If you are not already factoring in that cost, you could put your business into a bind. Routinely take the same pay from your business that you would give anyone else you hire.
You are an employee of your business. Collecting a paycheck puts you in that mindset. If you didn’t get paid from a “regular” job, how long would you stay there? Would you do the work for free?
Why else are you self-employed if not to make money for yourself?
And, do not pay yourself and reinvest it back into your business. Your operation has to run off it’s own earnings, not yours. There will be times when you need to invest in your business, but you should expect to receive that money back.
CHANGING THE PAST
It’s okay if you have been at this ag business thing for a while and haven’t seen it as a business. Change that way of thinking right now. Adapt these new habits and ways of thinking. Treat your business like a business.
Now that you have this information, how will you use it to change your business mindset?