Written by, Samuel K. Burlum, Investigative Reporter and author of The Green Lane, a syndicated column, Published on 9/8/2018, a http://www.SamBurlum.com Exclusive
Source: Some believe small business ownership leads to overnight success and immediate wealth, time freedom and social status, when, in fact, the fruits of small business ownership are most often experienced only after years of long hours of toiling and after taking a significant financial risk. We will show how being a small business owner is much like being a farmer.
Small business ownership and farm ownership share many of the same attributes, responsibilities and challenges. The process of growing a business and growing crops in the field are very similar in nature. Most farmers are, indeed, also small business owners, but how is it that small business owners are like farmers?
Much like a farmer, a small business owner must plant the seeds of their future harvest. This means investing into a location, equipment and tools, inventory, and many other aspects of their value proposition before they reap any financial benefit. The small business owner must cultivate the field of potential client prospects and nurture these relationships the same way farmers nurture and provide for their plants, so that in the near future they can benefit from the harvest. The small business owner’s harvest happens when the relationships built with potential clients begin to yield purchases, and the financial exchanges are made for products or services of equal or greater value.
Just like a field of corn or a crop of select vegetables does not grow into a cash crop overnight, the small business owner must also wait for their business to mature. The small business owner must have three qualities that the farmer also possesses – patience, perseverance and vision. Just as it takes time to grow a quality crop, it also takes time to grow a fundamentally sound business model. During the time in which the crops and business continue to grow, new challenges can arise. The business owner and farmer must both have a plan to deal with these challenges and a willingness to work through the adversity.
Both the farmer and the business owner have an opportunity to sharpen the ax. For the business owner, the downtime in between serving existing and potential clients affords attention to be concentrated on other areas of their business that are critical moving parts of the bigger wheel of small business ownership. Small business owners and farmers must always be looking for ways to make their respective enterprises more efficient. Whether it be dedicating time to education or industry training, development of a marketing-advertising program, or taking some time out to service and maintain equipment and tools, both the farmer and business owner must use downtime to make improvements that will maximize their return on investment.
The business owner and the farmer each have time constraint issues to contend with. The farmer only has so much time to get their ripened produce harvested and to market before the crops spoil. The business owner must also serve his/her customers in a timely manner or put at risk their reputation with the customer. In both situations, the farmer and the business owner must be postured to serve the needs of the customer in the expected time frame that the consumer has set, or they both risk losing the sale. A harvest must be presented to market in a set period of time or the crop becomes unwanted by the market. The same can be said for products or services, as every product or service has a life cycle before it becomes obsolete. New technology is developed each day, and as a society of entrepreneurs, we are always looking to make things better and more efficient for less money.
The farmer and business owner must also be good managers of the tool known as money. A farmer has to know the cost of growing fields of their preferred crops, as well as all of the indirect cost of operating their farm. Farmers must be able to budget their money wisely so that they have enough resources to operate their enterprise until the next harvest provides additional cash flow. Small business owners also must also be good money managers. They must plan and gauge their inventory and/or services, as well as turnover time in between sales cycles and projects, so they too can have enough cash to run day to day operations until the next wave of sales happens. The farmer works on slim margins and knows that a bad year in the fields means a hard year of managing expenses until the next harvest is available. The small business owner must also be prepared for long sales cycles and poor performing seasons.
The business owner and farmer both must be able to see the field full of harvest before they even begin. This is called having vision. The small business owner must have a short term and long term plan for creating a return on their original investment while also pointing to the future of what will happen in a year, three years, and even five years down the road for their enterprise. A farmer stands in the field in early spring, before the first rows have been tilled, and must be able to see the crop that is to be harvested in the fall, even before the first seed is planted. The vision provides the ability to stake a plan of action that brings the series of events into focus that leads both the small business owner and the farmer to the day when they can be proud of the investment they made into their respective fields of practice.
Small business owners are farmers, regardless of whether they own a retail business or a service-oriented business. They must always plant new seeds of potential customers in growing their consumer base, cultivate and nurture business and community relationships, and invest themselves in the “behind the barn” work that is part of the machine of their value proposition to the market. If you want to become a great small business owner, aim to become a farmer first.
Samuel K. Burlum is an Investigative Reporter who authors articles related to economic development, innovation, green technology, business strategy, and public policy concerns. Samuel K. Burlum is also a career entrepreneur, who currently lends his expertise as a Consultant firm to start-up companies, small businesses, and mid-size enterprises, providing advisement in several areas including strategic business planning, business development, supply chain management, and systems integration. He is also author of “The Race to Protect Our Most Important Natural Resource-Water,” and “Main Street Survival Guide for Small Businesses.”