That's a statement we hear staggeringly when we use dairy farmers speak. It surprised us.

Making money is important. There is nothing that money can replace. Money doesn't make you happy, but poverty certainly doesn't either. Money provides a warm house, a happy and secure family life and it pays for the doctor and the education of the children.

Developments are going very fast today. The pace is high. That is why it is important as an entrepreneur to often distance yourself and examine your business model.

That is why it is essential to put income first as an entrepreneur and to focus everything in your business accordingly.

Only what gets attention grows.

So, if you, as an entrepreneur in the dairy farm, focus all your attention on production of dairy, it will increase. But that does not mean that your income will increase. Your turnover will increase. But the law of diminishing returns determines whether your income increases.

Milk production per cow and income have a correlation of 0.19.
Cost and income have a correlation of 0.72!

Efforts, attention, aimed at reducing costs thus yield almost 4 times as much as efforts aimed at increasing milk production per cow.

The Nature-Inclusive Business System PG NxT STEP® (formerly PG NxT-STEP) is entirely aimed at maximizing income by reducing and eliminating costs, thereby reducing the CO2 eqv. emissions, making it one of the lowest in the world.

If we include the capture of CO2 in the soil in that calculation, Pure Graze companies capture more than they emit, thanks to the unique grazing management.

Money matters! Money does matter. It shows what you are worth, what your labor is worth.

That is why your income should be the first cost item in the bookkeeping and not as a closing item. You are not a closing post! You are the reason all those other companies listed in your accounts get their money! Your income belongs on numero uno!

Give yourself an appropriate reward first. The rest of the turnover is divided among the other items.

That is entrepreneurship.

Pay yourself first and run your business with the rest.

Do you think this is impossible? The “Business Management” course gives you all the tools to successfully apply this principle. You order her in our webshop.

The course is also part of the “Nature Inclusive Agriculture” course, which provides you with many more tools to really prepare your company for the future. With a low cost price/kg milk, a low investment requirement, a low workload and a good return.

 

Good luck!

Ado Bloemendal