With increasing input costs and market fluctuations, understanding what is playing into your cost of production is critical.
Getting into the details of fixed and variable costs and understanding overall enterprise gross margins can help identify opportunities to influence profitability.
Is there levers you can shift to increase income per unit of product? How financially efficient are your different enterprises?
You may even run several different scenarios for the season ahead to set some decision parameters & check-in times for your business.
In order to conduct the business analysis, of course you need to have a handle on records, business principles and what some of your enterprise benchmarks and key performance indicators are that you need/ want to track.
From there you can also identify strategies you might employ to improve margins and flexibility through various market seasons, whether it be feeding and turning off lambs earlier, adjusting your enterprise to fit premium market specs or other options that suit.
If you are in the wool production business, there is an opportunity to deep dive into the wool cost of production at a workshop with Ken Solly, Murray LLS and AWI Extension NSW. The session will go through key business principles, cost of production, records, livestock schedules, gross margins and more.
A local case study will be used with real life data to work through and explore opportunities, KPIs and various strategies and tactics to adjust.
Contact me (rebecca.stacey@lls.nsw.gov.au) or check out the AWI Extension NSW events site for more information.
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