Is the advice or assistance good or bad?
As consultants we have to constantly ensure that the advice we give is good for our farm and small business clients. That means helping them do what they want, but also warning them of dangers and pitfalls. Because we have farmed and run our own businesses, at the same time as consulting clients all over Australia, we do know many of the dangers and pitfalls.
Government paid advisers
How good is the government at governing? Does it know how to run your farm or business? What does it want to achieve by paying people to advise you. Is it trying to help you or help itself?
What are the government’s objectives
Governments want increased turnover from you to give them increased taxes to spend. They seek increased turnover from you to pump up the economy and make the money go around faster. The more debt you carry the more you will be able to boost the economy with the money you borrowed. People in debt often work harder and faster to cope with the burden of that debt.
Are you thriving or suffering?
There is nothing like a farm or small family business to pump sales proceeds straight through in expenses paid out to suppliers and government bodies.
The point of farming or running a small business is not just to enjoy the fabulous independent lifestyle. It is to earn money to share with our family, to enhance their future, expand their horizons and provide them with enjoyment outside of the farm or business.
Has the advice or assistance you received, increased the amount of money left over for you and your family at the end of each financial year. Or has all that adviser-driven expansion and borrowing in fact left the bank balance in the red? Could owner-operators have been led into mortgage debt that drains the farm or business of most of its profit or even places the farm itself at risk of foreclosure?
Benefit of doing it before advising others?
The government has never run a farm or small business. When governments lose money they just borrow more or increase taxes or both. Have your advisers run their own farms or businesses?
We learned a lot by running our own merino sheep property in the NSW Central West and our own beef cattle property and stud in the Southern Tablelands. We’ve also run our own sub-division, equipment hire and art rental businesses, as well as working for global corporations and small businesses.
There is merit in carefully assessing the advantages and disadvantages of using government resources including government-funded advisers. Farming requires special skills as does running a small family business. They are very different to the public service.
Check the outcome
No matter what we do or who we listen to, it pays to reflect on the result. Some of the advice I have received from government advisers has been superb but some of it has been quite costly. I have formed a view over my life that I get what I pay for. The person I pay works for me and with me, considers me first when giving advice. I pick them on the basis of experience, knowledge and past performance. Life is too short to find out later that the advice worked against me.
The financial statements are a good indicator in any business venture, as are the people you serve. High profit is what to aim for. If your stock or crops are up to scratch, if your goods and services are as good as your marketing says, your customers will know and spread the word.