Navigate the Road Ahead

Feb 23rd 2009, Legacy By Design

By Kevin Spafford for Implement & Tractor

Rough Road. Caution. Stop. Yield. Dead End. Construction Zone. Passing Lane Ahead.

Common road signs, metaphors for the economic struggles ahead or instructions for managing the challenges of a weak economy? Business owners, large and small, are bracing for a rough ride. Many will use this economic crisis as a convenient excuse to throw in the towel. Others may hunker down and hope for survival, yet for some this opportunity will be used to examine existing business practices and creatively plan to thrive.  

Today’s floundering economy serves as a great equalizer. We all face challenges real and imagined. Of this we can be sure: no one will escape unscathed. The business environment on the other side of this adversity will look a lot different than it did before. You can’t unring a bell, can’t turn back the clock and yesterday is a fading image in the rearview mirror. One of our clients likes to say, “We develop bad habits during good times, and good habits during bad….” Right now is the perfect time to focus on improving business management, marketing proficiency and leadership development.

Effective solutions to this crisis do not exist, yet. But rest assured there is a resolution, and leading bootstrapreneurs will guide us through the darkness. American history is rich with industrious characters adapting to challenging circumstances and creating life defining revolutions – essentially crafting new beginnings and fabricating opportunities beyond anything that existed prior. Agribusiness owners must resolve now to help their operations adapt to a new reality and grow the capabilities necessary to weather the inconsistencies of a wracked economy, government interventions, onerous tax burdens and political unrest.

Look at the signs, and use this time to create something bigger, better, stronger and faster than existed before. The time is now; the opportunity is yours.

Rough Road – One hundred percent of the people in the U.S. and most around the globe understand that the economy is very seriously impaired. With the strongest financial system in the world staggering under the weight of a faltering credit system, investment funds struggling to reconcile derivative accounts, and industrial conglomerates teetering on the brink of bankruptcy, we know the outlook is grim.

All too often we sense a collective apprehension of ‘if they can’t make it, how can I expect to weather this crisis?’ Even if not rough, the future is uncertain, but the future is always uncertain.

Caution – Proceed with caution. The action in this statement is ‘proceed,’ and prudence defines how. Before the third quarter of 2008, every agribusiness owner had a picture of what his/her future should look like. Maybe it was a secure retirement, an additional location and some form of vertical integration. It might have been a store remodel, new customer software or additional service trucks. Whatever it may have been, this is not the time to eliminate those plans, hunker down and wait it out. This is an opportunity for the astute agribusiness owner to accept the challenge, make improvements and grow an operation of strength and fortitude.

Stop – Eliminate any activity that does not add to the bottom line. Examine everything – leave no stone unturned. There is no room for ‘sacred cows’ in a tight budget. Time, money and attention are precious commodities; invest them for the best return. 

Start 2009 with a renewed business plan. Examine every facet of your operation, and build a better path to the bottom line. A complete business plan includes:

1. A single unifying vision
2. Analysis of strengths, weaknesses, opportunities, and competition
3. Clearly defined goals
4. Action plans to support each goal
5. Budget of income and expenses

Yield – As in most crises ‘why’ does not matter. We’re all facing stacked odds so the important question becomes ‘how’ – how do we manage the challenge and maximize the opportunity? I encourage you lean into the challenge, acknowledge the mental, physical and monetary pressures, and then work harder, smarter, more creatively to succeed in the birth of a new era.

Dead End – Don’t chance false hopes and wish that something is going to save you. Security comes from strength and independence. Resolve now to be the solution you’d like to see in others, become the beacon of hope to your associates, vendors, colleagues and competitors.

Construction Zone – Use this odd time to reconstruct a bigger, better, stronger, faster business. Reconfigure your operations to address the challenge, fortify the financial foundation and resolve now to grow a multigenerational operation. Every adversity has the seeds of an equal or greater benefit. Plant the seeds of success with the tools of patience and persistence.

Passing Lane Ahead – For those clever enough to maximize the opportunity in adversity, now may be the perfect time to engage in the succession planning process. You may be thinking, “We’re trying to survive, and you’re talking about spending more time and money on what…?” In reality just the opposite is true. Succession planning is about creating a pathway to multigenerational success. It is designed to fortify the operation, enhance leadership, improve financial security, provide a seamless ownership transition and create a lasting legacy.

Comprehensive Succession Solutions include:    

2) Efficient Estate Distribution

3) Retirement Option Design

4) Wealth Management

5) Leadership Development

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