"Farming is more than a business. While profits drive business, life is not all about profit."
This statement, from the GRDC publication Farm Decision Making: The interaction of personality, farm business and risk to make more informed decisions, is certainly true for a lot of family farming enterprises, which involve stronger emotional implications within the decision-making process.
So, how do we balance the family connections in what is more than just a business, with concrete evidence?
How many times have you looked at a decision someone has made and thought "What were they thinking?". We often spend time reviewing the outcomes of a decision, but not as much time developing a process for how we make decisions.
A decision in its most simple form is a conclusion or outcome after the consideration of all of the factors involved.
Decisions can be simple, complicated, or complex and by recognising this we can begin to be more aware of what information we need to make a sound decision - remembering that choosing to do nothing is a decision in itself.
Decision-making is a learned skill and therefore it can and should be explored and practised to allow us to make good decisions.
Research has shown the only real difference between the top 20 per cent of profitable farmers and the rest of the industry is their ability to make the right decision at the right time. So, choosing to spend the time in becoming better decision makers is well worth the time invested.
Rural financial counsellors offer guidance by providing pertinent information, acting as a sounding board to run ideas past and by bringing a range of experience gained from other situations in the local area that could be applied.
Get in touch with the team at Rural Financial Counselling Service, who can provide resources and work though decision-making skills by analysing where a person is at financially, how a business is performing and setting up action plans to provide a strong foundation for farm decision making.
Give them a call on 1800 319 458, jump on www.rfcsnsw.com.au or use the QR code below to receive text resources and tips.