A developing business model

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By Dwain Duxson

A developing business model - We are fascinated by Farm and other Ag business models, and we love to study successful and not-so-successful ones.

Recently I spoke to a Farmer in NSW who has developed a successful Hay Trading and Delivery business. After speaking to them, I went away thinking about how the business model has evolved since they started 13 years ago.

Initially, they delivered single bale lots (5 Small Square min) loaded and unloaded by hand on the back of a Ute. Now they have a much larger minimum delivery, and they deliver them with a bale grab and a telehandler on the back of a semi that can hold several hundred. It's a testament to the model development and having a strong group of repeat buyers (the very best customers) in the Horse industry across the state.

Many of their clients wanted to deal in cash, but they resisted that because they wanted every dollar going through the books for access to capital reasons and also to have an idea of how the business was tracking. Wise move. From humble beginnings, they now have a rock-solid business, with repeat customers and a much more efficient business model, which has allowed them to scale and widen the margin of each bale delivered. It has developed through trial and error, and plenty of thought has gone into it. Have you had a review of your business model lately?

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