MORENOTNECESSARILY BETTER INA BUSINESS
CONTRACTOR UPDATE
MORENOTNECESSARILY BETTER INA BUSINESS
Opportunities for the agricultural contracting business have perhaps never been better, as the industry continues to seek ways of reducing costs.
But pleasing as it is to see at least one sector of the industry performing reasonably well, there is a cautionary tale; expansion and investment does not necessarily generate more profit.
More staff, more machinery, more office time, more customers can lead to a spiral of inefficiency, which can lead to a costly and untimely end. In short, being a successful contractor is not, of necessity, about being a big contractor.
Contracting businesses, like any other business, need to be managed carefully. Services need to be costed honestly – there are several examples in this update – and machinery needs to be maintained – residual values are an important asset.
And, above all, charges for services must reflect their worth – there is little point working for works sake and very little return.