business
Choosing Your Friends Carefully
One of the keys to prosperity I have found is to surround yourself with like-minded people. No, that does not mean that all my friends are corporate farmers or carbon copies of myself. I’m a firm believer you are only as good as your support system, and hopefully it is a great one. I like to surround myself with people who bring something to our friendship or share similar values. Does that mean ALL my friends are like-minded? No. However, the bulk of my friends and support system are people who I can learn and grow from. The people I surround myself with often have skills, talents or knowledge I would like to emulate or that I aspire to be; or we share similar goals we want to accomplish in life.
No matter where they are or what they do, they bring something unique to my life and our friendship. One of my friends is the hardest workers I know, “the hustler” we shall call her. She is always busy doing something and even in her spare time she’s got 10,000 projects going. She’s very good about being resourceful and organized (something I can always be better at). Plus she has a passion for real estate and farming like me.
Then there’s my marketing friend or “the show woman.” She’s a genius at marketing and promoting, plus she’s super creative and crafty (something I am not). We went to business school together so she often sees things from my perspective as an entrepreneur and gives great advice. Not to mention she’s one of the sweetest, most kind person I know (and I can always be sweeter).
Then there’s “the mogul” who decided college wasn’t for him and went out to start his own business. He has since grown it to an extremely profitable operation. We both share a passion for business and real estate and often share tips, hints and strategies. Plus we have fun sharing our passion of farming together.
The list is endless but those are a few profiles of close friends. Do we share the same background? Not always. Do we share the same passions? No. Do we support each in our own respective endeavors? Yes.
The key to a good group or support system is to have people who keep your best interest at heart, help you out when needed and support you in whatever crazy idea you dream up next. And let me state, I expect the same out of myself and try to give the same back.
For many years, I surrounded myself with a person who wasn’t supportive. This person bred negativity, resentment and loss of self-esteem. This caused several setbacks professionally and personally. From this experienced I learned the true value of friendship and how the right group of people can make your dreams a reality.
So go out, find excellent like-minded people who will help you achieve your goals!
3 Keys To A Great Budget
This past week I happened to go on a date with a guy, who quickly said when we say down, “what’s your budget.” The date’s a story for another day, but the question he prompted still lingers. It got me thinking about budgets and the best way to implement them. That same week, my girlfriends and I had dinner and the topic of budgets came up again in conversation. All married friends, they began to tell me about their discretionary spending and ways they keep track. Some take out their allotted cash for the week from the ATM; some have a debit card where their allowance is solely transferred to that card.
But what makes a good budget? In my opinion, it’s the details and execution that make a budget successful.
Too often when working with people, they forget to include items such as dinner out with the girls or that monthly mani/pedi. To be effective, your budget must be inclusive of ALL your expenses (and income). I tend to use my debit card for all purchases as I can download the monthly activity and put it in my budget. For my business I tend to use one specific credit card (which I pay off at the end of the month) and track it for my budget. Whatever method you use, make sure it’s accurate and captures all your spending habits.
Implementation is also key. I don’t know how many people I talk with that have the best of intentions and start out each year with a budget, but finish the year in a hole. A lot of mistakes I see are people create an over the top and hard-to-use budget that doesn’t make sense for them. The easier you make it for yourself, the easier you’ll stick with it. To be honest, my budget is simply an excel spreadsheet. I have listed revenues (or income) and below that is my expenses to arrive at my bottom line. Sure I take it and do analysis for future projects I want to do or run a future savings plan (my what-ifs). Because of my busy schedule, this is a quick way to keep me on track and faithful. Find a way that works for you and your life in order to be successful at budgeting.
Like with implementation, a budget is only as good as the information you provide and you review. Let’s be honest, you created a budget because of a financial goal you had. In order to reach that goal, you are going to have to review and adjust your budget as necessary. Set aside a certain time each month (or each quarter) and review your budget. I set a reminder on my phone for a Sunday night after dinner each month. We aren’t perfect and as much as I would love to say I stick to my budget, there are months that I may deviate from the plan (and that’s okay). I simply look at my budget for the next month and readjust. There might have been an unexpected expense (like my dog Bentley eating something he shouldn’t have and going for the full work up at the vet) or in a great case, more revenue from your business you took in that month. Whatever the case, don’t get discouraged. Reevaluate, readjust and carry on.
So whatever your long-term or short-term financials goals, budgets are a great tool. Remember to be honest about them, implement them and review them. You’re sure to get there!
Why I Say “No”
There was a point in my short, young life where’d you always hear me say “yes.” Can you help me move my cattle, “yes.” Can you read my paper, “yes.” Can you stay late to work on this project, “yes.” The people pleaser in me would jump at anything or anyone to help out. Always remembering “yes” as it rolled off my tongue easier than my own name. That was until I learned the word “no.”
To clarify the word “no” had been in my vocabulary long before. As a child, when my parents asked me to eat my vegetables it was always “no.” As I got older I’d seem to have lost the word from my growing vocabulary.
It had always been ingrained in my DNA to work hard and do the best at whatever I chose to do. A theory that was further drilled into me during my college years and then upon entering the corporate world.
Working late at the office was nothing out of the ordinary. Sometimes I would have been the first one in and the last one to leave at night. Making sure every last report was completed and checking on my colleagues.
After several years and many burnt out tax seasons, I realized that if I didn’t change my way of thinking, it would soon change me. That’s when I reacquainted myself with the word “no.”
It wasn’t that I would turn down friends when they asked for help or only work the bare minimum when it came to work, it was balancing my life. I’ve learned by prioritizing yourself, you can better help others. I cut out a certain part of every week for myself, to help me unwind and recharge. If there is some social commitment I want to attend, I go. If someone needs assistance, I create a schedule we both can live with. As a result of my new found word, I haven’t received any backlash or judgement. People have respected my decision and know that if they need help or want something done, it will get done – just at my time/pace. Compromise is key!
As I’ve gotten older, the more and more responsibilities and tasks I have taken on, which makes the balancing act oh so important. By saying “no” to certain things it has allowed me the opportunity to further my passions and be a better person to everyone and everything I do. So next time you are feeling stressed or burnt out, remember you can say no.
My Top 4 for Entrepreneurs
Over the past couple years of my life I have accomplished a lot. I bought two houses, started a company, grew and expanded my farm, finished my Master’s degree, moved up the proverbial corporate ladder, worked on development of two new companies, ran for a public office (and won!), got appointed to the board of a non-profit and at not even thirty years old – I’m just getting started.
People often ask me my advice on how to start a company or what makes an entrepreneur successful. While I don’t have all the answers, here are my top four words of advice for any entrepreneur in any industry.
Make mistakes – People will tell you not to invest in that or that you have to do this. If you don’t follow what you want to do and make your own mistakes, you will never learn. It’s better to say “I tried and it didn’t work,” rather than “I didn’t try at all.” Make your own mistakes.
Don’t put all your eggs in one basket – diversification is key. Always have a back-up plan, an exit strategy, and something to fall back on. Take risks but be smart.
You are not “self-made”- There is no such thing as a “self-made” millionaire, entrepreneur, etc. There have been people along the way to help you get where you are today. It could be your parents and a $50 loan, a teacher that believed in you or a friend who spent hours on your crazy idea. Whether you’re on the top of the world or climbing the ladder, don’t forget the ones who helped you get there.
You don’t know everything – There will always be someone bigger, stronger and smarter than you in this world. Be humble, ask questions and never stop learning.
The Business of Family Farming
As we sit down to celebrate the holidays with family, I’d be remised if I didn’t write about family farming. As a third generation farmer, I am lucky enough to have two generations before me still active in the farming community. Although my family is small (10+ people) we are in some way connected to farming (some more than others). Often, when planning out farming activities such as haying, I am met with push back about my “new ideas.” This was the case when I suggested we move from square bales to a round bale operation. My grandfather, still adamant today, that squares bales were tried and true and nothing can replace them. My father on the other hand, loves the convenience, ease and simplicity that the round bales can offer. I remember sitting down with my grandfather with my pro’s and con’s list to try to sway his vote. It took several times but finally I was able to convince him that we should at least do a couple round bales to try it out. When I said a couple, he took it literal and we only did a couple round bales of the outside windrows that year. Although many people would think it was a waste of time and effort, to me it was one giant step into “modern farming.” (A side note we still do about 5,000 – 10,000 square bales a year for customers and for our own consumption however, I am happy to report our round bale operation has grown!).
As the saying goes, family and business don’t mix. This does hold true for some industries, some jobs and some businesses, but when it comes to farming they go hand and hand like apple and pie. For someone like myself (I would consider myself a new aged farmer), it can be challenging to implement new ideas and especially technology with the tried and true generation. Through my experience, I have learned there are a couple ideas to help ease the transition.
- Make a plan – I have found that my most effective case for new technology or equipment is supported by a well thought-out plan. It could be a simple as highlighting the “who, what, where, when and how” of a new item. Or it could be more involved like a more detailed description of a haying schedule with diagrams and statistics. I often like to feature the objective (this comes from my accountant audit background) of each idea and the steps to get there using said idea. Most often you will tend to get more respect and attention if you have shown your intent and that you took the time to careful consider all aspects of the farm.
- Be patience – they say Rome wasn’t built in a day and neither are the family farms. With a variety of opinions and ideas, this holds especially true when dealing with a family and business.
- Lead by example – often I will show what others are doing by taking a field trip to a nearby farm. This gives a more personable and relatable concept to your idea (and a third party view) to help ease any questions or fears. My family has a good rapport with a local equipment dealer and often they will send equipment down for me to try out for a week to see if it works for my farm and show to the prior two generations.
Lastly, communication is key when dealing with any type of business – or family. Making sure everyone’s ideas and thoughts are heard and coming to group decision within the family is incredible important. At the end of the day you are still family and that should come first.
Why You Should Hire a Farmer
One of the most frequent questions I get is “where did you get your work ethic from?” Typically I respond “from my parents.” A true statement, however, it wasn’t until my corporate career that I really thought about that question and what it meant. I concluded that my parents instilled that value, though, the tool they used was the farm.
While most kids spent Saturday mornings watching cartoons, I was down at the barn mucking stalls and feeding cows. Then it was time to walk cows as part of my 4-H project. It wasn’t until 11am that I was able to go back inside and “relax.” When I was older, I would take care of my 4-H projects before going to school, then after the conclusion of my school and my sports. Rain, snow, wind or lighting- it didn’t matter as the cows (and pigs) depended on me. My story isn’t different from many of my farming friends and those many people who proudly call themselves farmers.
Farmers don’t work a typically “9-5” job. They work many hours often being on call and ready for anything. Their work week doesn’t stop at forty hours. They are the type of people first in the office in the morning and last out at night. They understand that to get results, hard work and determination is essential.
Farmers are resourceful. They know how to take little resources and turn them into amazing results. It could be seeds that transform into a crop or turning broken equipment into functional. On top of that they know how to maximize their time as the work of a farmer is never done. Prioritizing is second nature.
Farmers are great business people. In the farming industry there are often slim margins and little returns. To be successful in the industry, farmers have to take a dime and make it into a dollar. They have to be their own marketing agents, financial professionals, bankers, and investors. To survive, they have to know every inch of their business and how to get the most of out of it.
Why should you hire a farmer? Farmers are the quintessential employee. Their loyalty, knowledge, dedication and compassion are just some the qualities they possess. They rival the work ethic, understanding, and talents of some of the top CEO’s. Should a resume ever come across your desk with the title “farmer,” make sure hire them – a decision you won’t regret!
Tax Planning for Businesses
Good Afternoon!
I hope wherever you are you are recuperating well from Thanksgiving. As this year starts to wind down, I thought I would share my thoughts about year-end planning. As a tax accountant, I always recommend doing year-end planning. First, it gives you the ability to calculate your tax liability and gives you the opportunity to reflect on this past business year. Second, as with any planning, it allows for the opportunity to implement tax saving strategies to (hopefully) reduce your tax liability. There is very little that can be done after the year-end close, and every opportunity should be done prior. Consulting with your tax advisor, there are several tax strategies to potentially take advantage of. For instance, looking at your cash versus accrual method of accounting and how it relates to your business. Also, are there any assets you can purchase prior to 12/31 to take advantage of depreciation? How about taking bonuses for your shareholders (if you have them and depending on your individual tax rate)? No matter what your business, planning now can save you a headache and lots of wasted money in the future!
*Suggestions and not tax advice. Please consult your accountant or tax advisor as it relates to you.
The High Heeled Farmer 