Reading Time: < 1 minutesNow is the time to take a good look at where your operation stands, to determine the path you should take for 2020. It doesn’t take a financial expert to tell you that businesses without plans have lesser chances of survival – in fact, 50 percent of businesses historically fail in the wake of a major disruption due to lack of planning.
K·Coe principal and ag consultant Peter Martin puts it into perspective, “As we ponder another decade and crop year, it’s wise to take inventory of where your operation truly sits.”
Using working capital (current assets minus current liabilities) as the basis of financial health, Martin puts growers into three categories –
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- Struggling (negative working capital)
- Getting by (positive working capital)
- Well positioned (working capital equal to at least 33% of revenue)