Mid-Summer’s Financial Reality Check

I get it!! Summer is in full swing and you’re probably plenty busy surfing the wave of the growing season. Personally, this is a time of year I always loved on the farm– when I could be fully immersed in the richness of growing and harvesting the abundance that a well planned and well executed market farm can produce.

For many years, the last thing on my mind at this time of year was budgeting. I mean, budgeting is something you do in winter right …? Wrong!! On my farm, dialing in the mid season budget management was instrumental in allowing me to take my net income from 30k$ per year to 50k$ (and that, the year after my son was born, and my first year managing my farm without my wife.)

The fact of the matter is that this is a crucial time in terms of scoring our financial goals. The game is by all means not won, nor lost, at this point… Depending on your situation, it can go both ways. Arguably the biggest sales months are still ahead!

Thus the importance of bringing more focused attention to our finances this week.

  1. Where are your sales at? What % of your total sales target have you reached so far? Are you ahead or behind of last year’s % sales at the same date?
  2. What weekly sales targets will allow you to reach your goal? Don’t be fooled by a simple average. Weekly sales targets in August will obviously need to be higher than in June or October. Break it down by sales outlets so you can see which are ahead and which are behind. Communicate these targets to your market vendors… celebrate victories, brainstorm creative ways your staff can take an active role in scoring these goals.
  3. How are your expenses doing? What expense categories have you maxed out; which still have some budget available? What expenses can you minimize or delay till next year? It can be tempting to buy the largest format of supplies to ‘get a lower price per unit’, but please take into consideration your annual budget when making such decisions. The lower unit price of a box of 5000 screws when all you needed was 500 is not always worth busting your budget for.

By all means… don’t freak out if you don’t have the record keeping systems in place to allow you answer all these questions.

Progress… not perfection! We’ll work on those systems next winter together. 😉

Oh … and don’t forget to enjoy the ride! What would be a small sweet action that would be a demonstration of enjoying the small things in life and savouring the summer?