Businesses that focus on individual components of their operations in isolation find it difficult to make progress as a whole. IMAG utilises a whole farm approach to business planning to examine linkages between enterprises on the farm and take advantages of any synergies that exist.
Our spreadsheet-based modelling allows examination of a business as a whole to determine the optimum mix of enterprises for a given target of profitability and risk exposure. By performing analysis on a number of key ratios, the business can be manipulated to improve performance. Some of these key ratios include operating return on assets, business return on equity, asset turnover, gross margin ratio and the four ratios that indicate where gross income is spent; namely direct costs, overhead costs, finance costs and profit.
The fact that IMAG’s consultants are trained agronomists adds another dimension to their farm business planning that others often lack. Because they understand the physical capabilities of the land under management, they can use this knowledge when determining the optimal enterprise mix.