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The Anson Approach allows you to understand your business and farming operation at a strategic level, providing a perspective for more effective decision making and greater likelihood of success.

Agricultural operations have many similar attributes to a non-agricultural business. They produce (grow) a product which requires some kind of processing (harvesting, mustering, processing, packaging), transport and sale to a customer.

When agri-operations are broken down to their fundamentals, the true nature of the operation can be analysed and assessed for methods to increase productivity, profitability, management ability and risk mitigation.

Anson consultants have extensive agricultural experience, meaning they understand the ‘issues of the land’ and can apply business principles to the topic at hand, without delays for lack of rural industry knowledge.

Farm financial management and operational efficiency (or strategy) is increasingly important, particularly as modern farming systems require greater outputs from fewer resources. Input costs are rising at higher rates than product sales prices, meaning to maintain profitability fewer resources must be used to produce the same output.

In the 1990’s to 2000’s new varieties and farming technologies provided these efficiency gains. Today, efficiency improvements are commonly seen from improving business and financial management tools — this is how Anson Advisory can be ‘your advantage’.

Anson Advisory can provide the tools, skills and competitive advantage to achieve the management efficiency required to compete with those companies that can afford to have these services in-house.

An example, clients sought our advice on the purchase of a $2+ million horticultural property, its feasibility, risk, on-going operation and profitability, ownership structure, funding application and negotiation of the purchase price and conditions. The clients are now reaping the rewards of that deal.

Agricultural enterprises in the 21st century require strategic business analysis and concepts to continue improved productivity. With an in-depth knowledge of the agricultural industry along with the vast amounts of information available, business principles should be applied to each situation to make sound decisions to improve farm productivity and profitability. Utilising a ‘Systems approach’ with a wide selection of the below topics will greatly improve an enterprise’s ability to generate sustained wealth. Anson Advisory can assist with:

Long-term profitability analysis and projections

  • Analysis of historical information through tables and graphs
  • Comparison of farm data to industry norms (benchmarking)
  • Generate assumptions or estimates for a range of scenarios
  • Make projections for production and profitability
  • Compare to grower expectations

Benchmarking

Benchmarking compares your business performance against industry best practice and typically includes:
  • Identifying what is to be benchmarked and how data will be collated
  • Identifying performance gaps
  • Implementing plans to improve performance
  • Develop on-going measures to ensure industry best practice

Improve enterprise productivity

  • Implement or improve recording methods
  • Analyse information to identify high/low productivity
  • Understand the causes of high/low productivity
  • Investigate vertical integration and diversification options
  • Investigate alternative markets/marketing
  • Economies of scale and break-even analysis
The scale of an agricultural enterprise can determine its profitability. Knowing your break-even point and optimal scale can save or generate hundreds of thousands of dollars annually. Remember ‘big’ is not ‘always better’.

Business Development

Business Development identifies and implements plans and processes to increase sales and market penetration and often includes:
  • Analysis of existing development and marketing processes
  • Identification of new markets and networks
  • Develop processes to increase market penetration and diversification
Business development is about improving an enterprise’s presence in the marketplace.

Funding requirements

There are numerous funding avenues available in today’s modern economy. The funding source will depend on the need or cause, ownership of the asset, repayment ability and your expectations of the venture. Successful funding applications require significant research, analysis, planning and projections, and typically involve:
  • Funding source - bank, government grant/subsidy, related company, venture capital, private investors
  • Reason for funding – drought, new project or asset, project or business expansion, cash-flow, debt consolidation, capital funding, etc.
  • Repayment projections
  • Contract structure
By seeking professional assistance you are much more likely to negotiate substantially better terms for yourself by utilising the experience of Anson Advisory’s consultants.

Analyse off-farm investments

Historically agricultural investments have had a lower Return on Investment (ROI) than off-farm investments. By incorporating these types of investments into an enterprise, long-term overall wealth can be increased. These typically include:
  • Establish where your interests or hobbies lay and develop investment strategies to suit
  • Identify surplus cash periods
  • Identify assets with a high historical return
  • Analyse global trends to identify opportunities
  • Generate short and long-term strategies to increase overall wealth
By seeking professional assistance you are much more likely to negotiate substantially better terms for yourself by utilising the experience of Anson Advisory’s consultants.

Develop exit strategies / Estate planning

As we move through life our goals, capabilities and health change. Developing a strategy to incorporate family and personal circumstances helps to accommodate these changes and can include:
  • Identifying personal goals and requests
  • Identifying other family member goals and desires
  • Identify long-term industry trends to plan possible exit timings
  • Update Wills and Advance Health Directives
  • Develop asset protection strategies
By seeking professional assistance you are much more likely to negotiate substantially better terms for yourself by utilising the experience of Anson Advisory’s consultants.