The Power of Partnerships

When you think of partnership, who do you think of?  Your spouse?  Your parents or kids on the farm?  When I think of partnerships, I think of everyone who has a hand in the success of my business.  This includes the family members that are part of the business, the accountant, the banker (or preferably Credit Union financial support), and the veterinarian.

The relationship with a vet is what spurred this blog on.  You see, the other night, when we had a cow down with a calf that couldn't be pulled in need of caesarian section, my husband could not find a vet willing to come out and help.  Our regular vet was "gone away" according to whomever answered the phone at the emergency number on the clinic voicemail.  Most of the others who answered the phone were too busy or didn't have a large animal vet available.  Then there were a couple who were too far away and didn't want to leave their own area without someone for that long if they came out here, but were willing to do in-clinic work if we could get her on the trailer (fair point for the vet, but no way this cow was getting up and into a trailer).  In all of our moving and planning and buying cattle, it never occurred to us that we may end up having to euthanize an animal for lack of ability to find veterinary care in a crisis.

This is why the power of partnerships is SO important on the ranch or in any business.  As a former lender and manager at a bank and credit union, I have seen the value of partnerships from a bit different light on the other side of the desk, but always saw the need for relationships to be built rather than once a year going to visit the accountant, banker or neighbour.  These relationships are important to develop at the beginning, not just when you need them.

A great example of this is your relationship with your bank or Credit Union.  If you start out on your own and then you get into a jam and THEN you head off to talk to the local banker, you are more likely to meet resistance than if you have been in, sat down and planned with someone what you were looking at doing.  We think of banks as money lenders, but there are services beyond that which could benefit us greatly.  There are planning services, tax efficiency knowledge, utilizing different savings vehicles and more.  How many of you use your banker to the maximum of their ability? If you don't feel the banker you are dealing with has the right knowledge to assist you (we just recently went through this at a local credit union) - go somewhere else until you find someone that does.  They should be able to answer your questions or they should have someone they can go to and get answers for you.  Do not accept mediocre bankers.  You need someone who believes in your plan and is willing to work with you.

Another example is your accountant.  As a former banker, I can't even tell you how many farmers and ranchers I met with that did not use their accountant to the fullest of their abilities.  Rather than sit down and discuss where the tax efficiencies might be and what to do about retirement and succession planning, it was merely a relationship like those the average person has with H&R Block and companies of the like.  It should be a quarterly or semi-annual meeting - not a shoe box on April 15th (this one do as I say, not as I do).  A good accountant that is knowledgeable in agriculture should be able to help you look for ways to keep money in your business and ensure that you are still mindful of retirement and succession planning.  Use your accountant.  Don't take for granted that they have your best interests at heart.  Ask questions and don't forget to plan for retirement.  You may not think you are going to retire, but you need to think about what happens when you slow down or want to transition to a family member or sell.  Similarly to the banker scenario, if you don't like or trust your accountant, get a new one.  This isn't a marriage.  It's a business partnership and you need someone who is doing their part in the partnership.

The veterinarian is another integral part of any livestock operation.  You should have a herd health program and you need someone that can advise you, and assist you.  As with our example above, clearly our relationship with our vet wasn't that great or we would have known that he was going to be on vacation while we were in the middle of calving.  That is something we will not have issues with in the future.  A veterinarian has been to school for many years and they have the knowledge that we cannot possibly have, even from years of experience.  It is important that we have someone that understands our geographic location and the issues that arise due to that.  Also, when something arises of a crisis nature, it is important to have a vet that is up to date and in the know of progressive options and treatments.

I could go on about other people that should be involved and I will blog about the family connection another day as that is a relationship/partnership that is often mistreated due to us taking things for granted - often good communication skills would resolve a lot of misunderstandings and confusion.  Neighbours, renters, crop share partners, mechanics, equipment dealerships and more are out there to work with and help to ensure you are getting the best collective bang for your buck.  Don't discount the importance of relationships when you are starting up, building up or even winding down your business.  Having an excellent network of people in your corner is going to increase your potential for success exponentially.