Good intentions? Invest in quality

At the start of the new year, we reflect on how things can be done differently or better. How do I become happier, and how do I become a better entrepreneur? The answer to the first question is personal; the second question is more up my alley. I personally want to focus on the things with which I can make a difference and actually add value. What is your good business intention? Below are some fodder for ideas.

Within ABN Amro we have gained a lot of experience over the past decades with various agricultural companies. It strikes me that well-performing companies pay attention to the 7 key points described below. Give yourself the time and patience to invest in at least 1 part this year. They form the basis for a healthy company.

1. Good management information
Adequate management information and careful administration are indispensable for good technical results. Today's companies are too large and complex to manage by feel. We sometimes see mediocre or poor results, without the entrepreneur having insight into the backgrounds or being able to do something about it. He seems powerless. Having insight and being 'in control' form the basis for good, predictable results. Keep yourself and your employees sharp. Try a new method and test yourself with the benchmark. Where is room for improvement?

2. Good financial information
Make sure you have an overview of the cash flow and the underlying drivers. Are they also broken down by business activity or type of product? What is the cost of liquidity or break-even price? Are all debtors and creditors in view? Administer private expenses separately; that also provides insight. Make a liquidity forecast and adjust it if the assumptions are no longer correct. Make sure there is sufficient buffer for a price drop or incident. Have the consequences of the main risks been identified? What is the value of the company? In the past, the assets for old age were in the company. But that is often no longer the case with non-land-based companies.

3. Acting appropriately and flexibility
Market conditions and the business environment are changing, and it is difficult to always make the right choices. By responding adequately to changes and problems, you make a difference. Insight is important here. What is actually the core of the problem? In line with Darwin's theory, it is the companies that adapt best to the circumstances that are successful. So intervene in time and correctly when a problem arises. The longer you wait, the bigger the fire gets. A good vision and the right focus prevent you from having to put out fires every day.

4. Clear vision and strategy
Get a clear picture of your vision of the sector and the market in which you are active. Also form a vision of your company and yourself as an entrepreneur. Have a bright dot on the horizon. Without focus and purpose you end up in a different place than you had foreseen. The goal may well be ambitious, but must be in line with the existing situation and your own competencies. Give yourself time to grow as an entrepreneur. Keep a close eye on how the market is developing or what the opportunities are for sustainability. Do you opt for permanent chain partners, or do you feel better in a free role? A dot on the horizon also includes a road map. How are you going to achieve the goal? Which investments are necessary and which are nice to have?

5. The right competencies
As an entrepreneur you have to come from a good home. You are not only animal/plant caretaker and manager, but also chairman of your management team, networker, negotiator, financial director and inspirer. Ask yourself: where is my strength and what am I not so good at? Be honest and trust your talent. When did you last workout? Collaborate with people who are good at what you cannot do. We experience that entrepreneurs find it difficult to ask for help, for example in stressful situations.

6. A strong team
Your team consists of family and staff, but also advisors, suppliers and customers. A strong team increases the professionalism of management. As an entrepreneur, remain a director yourself and maintain an open attitude. This improves the input of your environment and the quality of the decisions. Are external advisors sufficiently involved and competent? Are they sufficiently independent? Where can you find information to support your decisions? Make clear choices and good agreements. Make sure agreements are kept. In our experience, entrepreneurs sometimes have the tendency to relinquish control in the event of problems, as a result of which the company slips.

7. Have fun at work  
As an entrepreneur and as a person you cannot do without job satisfaction. You won't last without a little fun and appreciation. Fun is contagious for your family, employees and environment. People differ enormously. What is enjoyable for one person, can last less than 2 weeks for another. It is clear that you have the most fun doing the things you are good at. That is the key to both job satisfaction and success. Successful people focus on the things they are good at and organize the rest. Steve Jobs is still a good example of this. A brilliant visionary, but a jerk as a manager. Aspects such as stewardship and giving meaning also play a role here. What do you leave behind as an entrepreneur and a person? What have you contributed to a better world? 

Pierre Berntsen

Pierre Berntsen is director Agricultural Companies at ABN Amro. Through his work, he has a lot of experience in translating sector developments into business development in the agricultural sector and agribusiness.

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