Family Business Advisors NW

If you want to make big improvements in your organization, start with small things like organized tools.

there is an economic and Agronomic benefit to coated seed.

In the journey of transforming a family-owned business into a more professional entity, establishing a Buy-Sell Agreement is a crucial step. This agreement outlines the significant events that could lead to a shift in share ownership, such as retirement, divorce, death, or transitioning shares to the next generation. While it’s necessary to involve an attorney to formalize the agreement, we can assist you in devising a plan beforehand, potentially reducing the time and cost spent on legal counsel. Here are some key points to consider: Company’s Long-term Goals: What is the vision for your company’s future? What objectives do you aim to achieve in the long run? Share Allocation and Valuation: What method will you use to determine the distribution and value of shares? Role of the Next Generation: How do you envision the involvement of the next generation in the company’s future? Potential Sale of the Business: Is there a possibility of selling the business? If so, what circumstances would initiate the buy-sell process? Share Ownership: Who is eligible to own shares? Is it limited to blood relatives or does it extend to other relations? Settlement for Exiting Partners: How will you calculate a fair settlement for partners who decide to leave the business? Penalties for Value-Reducing Activities: What penalties will be imposed for actions that decrease the business’s value? By addressing these points, you can create a comprehensive plan for your Buy-Sell Agreement. Remember, this is just a starting point and it’s important to consult with a legal professional to ensure all aspects are covered.

Quality does not come cheap but, for business, lack of quality, is very expensive. This principle was evident in my experience marketing frozen French fries to restaurants. The most affordable option was a product called Line Flow. These fries, characterized by their inconsistent length and high moisture content, were produced at the highest speed and lowest cost. If a restaurant owner was solely focused on price, Line Flow was the go-to choice. However, we enlightened these owners about the economic benefits of upgrading to a higher quality fry. Superior fries not only yielded more servings per case but also warranted a higher selling price. For instance, McDonald’s doesn’t compromise on the quality of its fries. The key takeaway to consider that the profitability a case can generate may not correlate with the just the upfront cost of a case. A similar narrative unfolds in the realm of seed coating. One might question the rationale behind purchasing coated seeds when the bag contains fewer seeds. Coated seeds consistently demonstrate a higher conversion rate of legume seeds into viable seedlings. The enhanced survivability of coated seeds compensates for their reduced quantity is the key agronomic advantage. The same weight is planted as with raw seeds, and the coating will aid in seedling emergence, survival, and uniform stands. Consider this comparison: Raw Seed: 11,250,000 seeds-- yield 3,600,000 plants Coated Seed: 7,425,000 seeds per bag--- yield 4,588,000 plants The common mistake is to focus on the number of seeds in the bag. The more accurate perspective is to consider the number of healthy seedlings that each bag can produce. This shift in viewpoint can make a significant difference in understanding the true value of your purchase.

Sometimes we need help but are too proud or too embarrassed to raise our hand. We risk a lot by not asking questions, asking for help, or not remaining curious.

Interesting that it is called the "Farm" bill.

We worked with a group to better define roles, determine next generation expectations and even exit plans through a buy/sell agreement.

A strategic matrix for organizing a successful family business --to survive future generations.