Posted June 13, 2016 by Administrator
It isn’t always easy to evaluate all of the aspects of your business that will improve its value. Though valuing a business is a complicated process, there are measures you can take to quantitatively improve the worth of your agribusiness operation.
Differentiate Your Products
Agribusiness has a low barrier to entry, which makes differentiation an important aspect of your competitive advantage. Product differentiation also allows you to price your products at a premium while making your company less vulnerable to your competition.
Multiple unique distribution channels have developed over the last twenty years. This offers your company an opportunity, as long as you understand how to manage your channels. Research the channels that will help you reach the right market for your unique products to increase your returns.
Centralize Your Purchasing
All businesses need to be able to forecast and purchase good efficiently. If you can strategically source your inventory needs while maximizing your channels you can achieve higher gross margins and will be less vulnerable to commodity squeeze.
Another essential element to increasing the value of your business is to reduce costs. This will prove that your company can continue to grow earnings even if sales values level out. Elements of a cost reduction strategy include:
- Strong cost accounting
- Research and Development
- Internal process engineering
- Streamline processes
- Stringent product life cycle evaluation
By mitigating costs, centralizing your purchasing, managing your channels and differentiating your products your company can charge more, develop your brand, and decrease your market risk. Then, when you have improved the value of your business you need to protect it. Contact the experts at Cline Wood to learn more.
Posted August 25, 2015 by Administrator
Agribusiness plays a crucial role in the health, safety, and security of our nation. Our economy depends upon the products we grow, how and where we ship them, and the ongoing success of the businesses that do so. As such, safety, regulatory compliance, science and technology, medical and cultural and shifts, and a host of other factors can significantly impact the health of the agribusiness sector. The Cline Wood agribusiness blog brings interesting and relevant content to those who work in or with the agribusiness community in a concise and professional format. Check out our top 6 posts from recent months to learn more:
- Farmers Encouraged to Speak to the Public about the Long-Term Effects of a Gluten-Free Diet
- Understanding Crop Insurance Tax Deferment
- 3 Ways Agribusiness Owners Can Lower Their Insurance Premiums
- Stay Informed on Animal Health and Food Safety Regulations
- The Future of America May Lie at the Intersection of Fuel and Food Production
- Energy and Natural Resource Companies Need Strong Risk Management Strategies