All businesses, farming or otherwise, have strengths, weaknesses, threats and opportunities. Good managers know in detail what these are and develop plans to make the most of the positives and investigate ways to control threats.
A business check (or analysis) is used to identify financial strengths and weaknesses of a business. It helps pinpoint the issues, can provide insights into the flow-on effects of your decisions, and makes a great starting point for planning the future with any family members involved in your business.
Why do a business check?
A farm business check can help you work towards achieving your goals, and provides indicators that can help with decisions such as:
- Is there more potential to develop the business with existing capital?
- How do you grow the business?
- Should you restructure finance?
- Are there opportunities to cut some costs with minimal to no impact on profit?
Ideally, farm business checks should be done regularly using a range of performance and seasons. It’s important to know how profit varies with up and down years and where your business can leverage the positives and manage the threats under these conditions. This will help you develop your strategies for downturns, including dry seasonal conditions.
Your business is analysed by others involved in your farm investment, such as bankers, so it helps to see what they see and be at the head of the game.
Isn’t a tax assessment adequate?
A tax assessment is done for the purpose of paying tax, after claiming as many legal deductions as possible, under the Australian tax system. It doesn’t accurately reflect the overall performance of your business to inform a management decision – that is, one that will achieve your goals.
It is possible to extract some useful information from a tax assessment to help create a business check.
Where to start?
A business check or analysis can be fairly straightforward. However, it’s often confused by a lot of jargon.
To break through the jargon and gain practical tools in business management, Agriculture Victoria and Meridian Agriculture are delivering online financial literacy for decision-making webinars.
Presented in a short, sharp session, each webinar will include:
- How to do a farm business check and what it means;
- A take home tool to use on your own computer that calculates financial indicators for you;
- An optional follow up consultation.
While the webinars are tailored to the specific locations and numbers are limited, all farmers are welcome to register their interest and will be notified of any availability if available.
The free webinars are being presented as follows:
|Millewa-Carwarp Region||Tues 12 May||Wed 13 May|
|East and Central Gippsland||Wed 13 May||Thurs 14 May|
|Goulburn Murray Irrigation District (GMID)||Mon 18 May||Tues 19 May|
For more information contact Paul Blackshaw on 0427 546 643 or email@example.com
Or contact Meridian Agriculture on (03) 5341 6100 or firstname.lastname@example.org
Register for a financial literacy webinar.
More information about assistance available to help farmers manage during dry seasonal conditions or call 136 186.
Find out more about our farm business eLearning module.