Do you aspire to be a big operator?
Do you dream of being the biggest farmer with the most land in your area?
Do you get a major kick when you think of buying out your neighbours?
If so, Pump Up Scale (the eighth level of the TOP Producers Model) will help get you there. This steps all about rinsing and repeating your successful farm blueprint to expand your operation.
We had a client who set his 10-year vision to run 20K acres. And four years into his 10-year journey, he’s already hit that goal and is running 20K acres very successfully.
Yet he’s still hungry for more.
We met him in person recently, at the TOP Producers Event and helped him calculate that if he buys his neighbour’s farm and applies everything he learned inside the Platinum Mastermind, in five years’ time, he’ll make an additional $2million (in profit).
As this story shows, scaling is so appealing because you can make a great profit in a relatively short period of time.
Working through the TOP Producers Model, you’ve already done the hard work of learning how to build a great business. Now all you have to do is rinse and repeat the proven system.
Obviously, there’s a big opportunity here. BUT that doesn’t mean everyone should jump into Pump Up Scale. It’s an optional step.
Pump Up Scale is for those who truly LOVE the game of business
If that’s you, keep reading to learn the 3 main ways you can Pump Up Scale on your farm…
RELATED PODCAST: How to 10X Your Business and Scale Things Up
Scaling Strategy #1: Lease more farmland
Once you’ve worked through the first seven levels of the TOP Producers Model…
You’ve learned the skills to maximise the profitability of your farm…
And you’ve now got systems in place and people to do the jobs…
All the knowledge and work you’ve done on your current property, you can replicate it on another farm.
Why not apply that same blueprint on a leased block? The same way you would lease a house or a commercial property, you can lease farmland.
Think: McDonald’s. They keep applying the same blueprint in new locations.
The big benefit of leasing is that it doesn’t cost much to get started. The only real risk is the rent you pay on leasing that block.
Let’s say you pay $100K to lease a 1,000-acre block of land. If you’re a clever farmer, you might be able to turn that $100K into $500K of revenue by applying the same blueprint you’ve already used on your farm. So there’s a big potential for profit, even with the cost of the lease.
RELATED PODCAST: How Much Is Enough? Setting a Realistic and Achievable Financial Goal and How to Obtain It
That’s why one of the most important things to consider here is getting the lease agreement right. It’s so important you get a good deal so you’re not paying too much rent so you can get a healthy return off that block.
The main downside of leasing is that you’re gonna improve someone else’s block.
You’re gonna work that block to improve it…and in the end, you’ll give that block back to the owner. So you won’t keep the benefits of any improvements you make.
You also won’t get the capital appreciation of the land. A lot of farmers make a lot of money off of capital appreciation. In the end, you could have great cash flow and great profit…but you won’t be growing an asset because you don’t own the block.
Scaling Strategy #2: Buy more farmland
If you like the idea of rinse-and-repeat but don’t want to improve someone else’s block through leasing, a second scaling strategy is to buy more farmland.
You might negotiate to buy out the neighbours or purchase a farm in your neighbourhood or buy a farm 500 km away— the choice is yours!
Again, it’s McDonald’s. You have the insight into what works so you can just apply the same successful blueprint to a new farm.
The benefit of buying is that you own the land, so you get the capital appreciation and any improvements you make are yours.
The main downside, of course, is the big capital outlay to buy the land.
You need to consult your budgets to make sure you don’t spend too much money.
This isn’t a decision you need to rush. Be patient and clever and flex your negotiation muscles…because the wrong buy price will erode your profits.
We help farmers work out what’s the maximum they should be paying for a new block of land inside our Platinum Mastermind Program (whether buying or leasing.) Because as Warren Buffet always states, you make your money on the buy, not on the sell — so it’s crucial you don’t pay too much.
Scaling strategy #3: Start another business
Richard Branson says, “Once you learn to run a business, there’s no reason why you can’t run a number of other companies.”
I can attest to this, too…
Farm Owners Academy is my fourth company. All four have been in totally different industries but they’ve all been successful because the fundamentals of business are always the same.
There are so many ways you could apply the same principles to different business ventures. Here are 3 of the most common:
1. Buy an existing business
There are a huge amount of businesses on the market right now because Baby Boomers are retiring.
Why not look through the business classifieds looking to buy a good business at a discounted rate? Taking over an existing business is often much easier than launching a brand new venture.
At this point in your journey, you’ll have the tools to jump in there and improve the business to increase profits. Plus, this option allows you to work in another industry outside farming, which is great for those who want to minimise risk and diversify their income.
2. Start your own business, outside the farming industry
Once you’ve gone through this whole process of learning the skills to improve your farming business, you’re in a position to start a whole new business in a different industry if that’s what you want!
One of our Platinum Mastermind members is currently launching a personal training business. Deep down, that’s what his passion is. He’s able to take all the skills he’s learned about running a farming business and apply them to launch a side business following what he truly loves.
3. Start a new business on your farm property
You can also find opportunities on your farm that you didn’t see before…
For example, a mate of mine runs a sheep farm…and they recently decided to launch a solar farm on their land. They’re creating a totally unrelated business to what their genius is on their farm to derive a new income.
It’s important to remember that the Pump Up Scale step is optional. That’s why we recommend everyone goes through the Open Up step first to see if this is a journey you want to take.
We have a farmer who’s been running the same 500-hectare block for years. He’s running a good business, making great money, and experiencing freedom. He’s got no desire to get a bigger block — he just wants to perfect the block that he’s got. And there’s nothing wrong with that!
As we always say, success is doing what YOU want…not what anyone else wants. So it’s important that whatever scaling option you choose — even if that option is NOT to scale — make sure it’s the right decision for you.
Want hands-on support as you scale your business?
Whether you want help to negotiate a land lease, buy out the neighbours, or look for a completely new business to buy, Farm Owners Academy can help.
Inside our Platinum Mastermind, you’ll have direct access to our decades of experience running million-dollar businesses across various industries. You won’t have to struggle through it alone; you’ll have mentors and other farm owners who have been through it.
Click here to learn more about the Platinum Mastermind program.