When clients come to RFCS NSW for support, one of the first actions our counsellors will step farmers through is a business review. This provides farmers with valuable insights into their business performance by comparing their financial data, both actuals and ratios, to current and previous years, as well as to industry standards and competitors.
Some of the key benefits include:
Understand your farm’s performance: Undertaking a business review provides information on how the business is performing against goals and KPI’s.
Make informed business decisions: Make decisions based on a comprehensive understanding of your business’s financial strengths and weaknesses.
Identifying opportunities: Helps farmers identify areas for improvement within their business. By identifying performance gaps, farmers can prioritise areas for further investment and innovation.
How to get started:
- gather financial statements: Collate your farm business’s annual financial statements, including your profit and loss statements and balance sheet
- internal benchmarking: Assess your business performance against its past performance to identify areas of improvement or decline. Focus on measuring your levels of debt, an effective level of debt is important for long term viability. This can be measured by equity, debt to income ratio, finance costs as a percentage of farm income, return on equity calculations. All this information can be obtained from the financial statements. Use a range of indicators to gain a comprehensive understanding of your farms business performance
- talk to us: Your local Rural Financial Counsellor will guide you through the business review process.
“Our RFC gave us great assistance. The most valuable aspect of the support we received was helping us put together a business review. This helped us answer the questions that we needed help with,” Michelle, farmer in Murray River LGA.
Our Rural Financial Counsellors will help you consider your individual situation and circumstances. RFCS NSW offers support and tools to help farmers understand their business review and achieve sustainable success. Contact your local Rural Financial Counsellor at RFCS NSW on 1800 319 458.
