Begin with end goals in mind

In my pursuit of such I came across American author, the late Stephen Covey, who wrote the book The Seven Habits of Highly Successful People. After reading this book, I worked solidly to ensure they became habits for me, and it became the most influential book in my life.

One of the seven habits was "begin with the end in mind". Some would say that is simple goal setting, but I think it is more than that.

Most farmers become a little overwhelmed when I say they should have five plans in play all of the time.

These plans include business, personal, succession, retirement and estate plans. They must be written down and agreed to by those involved.

All these plans are interrelated and dependent on each other. If we get the business and personal plans right then it makes the other three so much easier to achieve.

Quality of life is quite often decided by having options and running a profitable business creates that for us.

A lack of profit in a business is not a production problem in the long-term, it is a people problem. Get the people right and the production and profit will follow.

That is why the personal plan is so important. This plan should ensure that there is continuous improvement, a good work-life balance and that a positive mental attitude is always present.

All five plans should be drawn up while you are young and have time on your side to allow the plan to unfold and materialise. Reviewing and updating them when a new member joins the business or otherwise annually should become a non-negotiable activity.

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Quite often I use the analogy of building a new house in my planning discussions.

You do not just get up in the morning and start building. Years of saving may precede the decision as to what you are really going to build. Often your radar is taking on board different styles and designs of homes for some time and then narrowing it down to one. This enables you to begin with the end in mind.

I sometimes believe farmers would be better to live their lives in reverse. If they did, they would decide at the start of their careers what retirement looked like in terms of assets, wealth and income requirements. A better plan could be drawn up and plenty of time would be on their side to achieve it.

The farmers that are not happy with their succession, retirement and estate plans at the end of their working days are usually those who did not have a good plan in place early enough. I have witnessed farming couples who, in their endeavour to be equal and fair with their succession plan, end up living a very lean retirement.

The first 10 years of your retirement should be the best years of your life, with very few pressures, freedom, flexibility and adequate dollars to pursue the pleasurable things in life. For those who are able to do this, the planning usually started 40 years earlier.

I encourage farmers who do not have these plans in place to start by having a sheet of paper for each of the plans. A good plan requires you to have goals, strategies, implementation plans and alternative tactics to give you every possible chance of achievement.

If you then include a costing, targeted return and achievement date, you will be well on the way to an improved outcome. It all starts with beginning with the end in mind.