S4 ● E89 Taking Busyness to the next level

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today's video is about growing the business and how we're going to shape ourselves in the next year and I think it's a very important one it's quite a long video but I'm talking very openly about the business and where I'm at and where I'm heading to and I think many viewers that watch our channel will find this very interesting if you stick with it because I'm totally changing our whole business so I thought the the best way to spend this session is I going to tell you about how I plan to change our business I feel like it's a nice way to wrap things up I can tell you where this place going cuz this is the last day of an internship ever here during this time that you've been here I've been going through some very intense uh processing in time not clear if I will continue a relationship as a father as a partner whatever not clear if I would stay in Sweden not clear what's going on and some of that's not totally clear but I am clear how I want to move forward and yeah that's been like you know quite uh it's quite intense to have that whole life going on in the background it's not really anything to do with you lot in my context the thing that's been lacking always is time everything else has been perfect and I wouldn't change any of it time is always what you will lack if you run your own business for sure or you wouldn't have a business it would fail and time is what you lack on a farm but if you want to start a farming business then you need to know how to move your fingers fast how to plan well how to get up at 6:00 whether you've got a bad back in a cold or not like if it ain't you then who you know so I know some of you have extracted the power out of that what I see actually is that the people I wish to support are the people who are moving with that attitude and aptitude of extracting the juice out of whatever it is they're doing whether it's taking a or washing up or cutting trees down or you know whatever it is cuz the people that I see that leave here and succeed are the people that are carrying that attitude every minute of every day whatever they're doing and that's the people I I need to have here and so next year's program will be very very different there will only be four ints and so look this is where we're at now 2017 and part of the context I've shared with you is about my relationship with your Hannah like that's been time has been a big factor always because I'm just super busy but I also come with the context of like hey you're starting up a farm business you're going to be busy for some years until it stabilizes that you can take some time out that would be true for anyone so you've got to be you've got to know what you're getting into it's why I want you lot to be exposed to hey this is a half hour job not a 3-day job with six people because if you can't get your head around that you will fail probably and I don't mean that in any harsh way I just mean that in like you're coming here to learn from someone with expertise they say and I've done my best to share with you the very critical bits of that so I hope you can extract the power out of that I choose to be busier than I need to be but I have objectives that are much greater than this far and and successfully achieving them in the way I wish to but I'm just on the edge of stabilizing our business that I have a lot more time and so the sticking point in my relationship with the Hanah has always been people in our house like people in our space it's it's quite intense having a lot of people living in our back garden and all the things they bring you know amazing things and frustrating things and all of that but all of that is intense whether whatever it is you know even if everyone is is groovy and having a great time it's still intense to have a bunch of people in your backyard every day but it's intense to have people in our kitchen every day too because it's you know we literally have no space at all and so that's like a sticky point the kitchen bit and it's it's hard to have that managed well because it's you can't really teach someone how to you know it's like asking someone not to walk over a fence you can say something 10 times and people will still do but when you're managing the heart of this place if someone is not hygiene aware you can't really train them to do that you know it's like people that run kitchens well know instantly what needs to be done with cleaning and sorting and labeling and de so it's it's always been interesting and never optimal but not bad it's always been great this is the food is great now we've enjoyed the food yes and it's it's there's nothing bad about it but it's not optimal like it's a lot of people resources going into that and there's bits around it that aren't done so it it needs optimization I feel like our business is on the edge of getting very big like we have a lot of people signed up for an online training that will drive a massive amount of Revenue that will put us in a very different position that I can take risk so this is a big part of the of what's making me accelerate this change the things I'm going to tell you now are things I've been thinking about since we came here but haven't had the capacity to carry out but this winter I possibly will have so revenue from it gives me security and it gives me uh like a long-term Vision like it makes my long-term vision for this place come alive and it allows me to take risk so I'm planning to take risks that most people wouldn't ever consider to do I I take quite a lot of risks anyway but I'm very happy to take bigger risks so this is next season I'm trying to just let you know the whole context and some of you know some of it anyway or whatever so right now we have a chicken Surplus and a big part of our economy is the chickens you know it drives uh a lot of money through the farm so how much money does it drive through it drives like a million CR that's £100,000 right so it's a lot of Revenue but if you can't sell it it's a lot of waste because it costs a lot to produce 60% profit so 40% La costs that you've already fed right now smoked chicken right what does smoke chicken sell for yeah we sell private we sell 129 CRS kilo with moms with vat if people buy 500 chickens we sell for 89 a kilo or whatever it is we have a range of prices depending on the customer size right which we send out to restaurants and d da smoked chicken adds 80 crowns of kilo if you go like the ones we got smoked this season it costs 80 CRS a kilo right to get them smoked so we can sell 200 210 a kilo now it's a summer thing so we're thinking we have a big freezer room in carlstead and it's a massive Warehouse freezer that's empty we're the only people using it right it's not that expensive to rent so we're putting chickens and stockpiling them there if we smoke them next spring we already have the customers to buy all of them we can sell the chicken smoked very easily now just for context we're at 4,000 Birds a year the chicken smokery place there's an old man he's 71 and he made the best smoked chicken we've ever had it I mean I've never eaten anything that amazing it was incredibly good and he's 71 he's been doing it for years but he only does 50 kilos at a time he's up for teaching us everything and he says it's really easy and you make very good money smoking stuff for other people so do it yourself if we can add 80 crowns per bird we don't need to do any more boilers we just need to do smoke boilers so we we can double my my aim next year is to have four profit sharing members right and then one intern per profit sharer and interns are highly selected if they haven't got that get up and attitude they ain't going to make it here but they're going to pay I don't know I haven't thought about the numbers they're going to pay 200 a month for three months and for the last three months they're going to get paid ,000 a month but only if they stay the whole season if they leave they get add and they've still paid that gives us the security of the pain in the ass of people not making the right choice for themselves and rewards them for the work they do but they're not sitting in the classroom ever we're working in the field hard every day like farman ear so we wouldn't sit down and do trainings like this we'd be making fences talking about keyline design or whatever we wouldn't be sitting in the class we don't need this classroom we don't need an intern wagon so intern wagon is turning into a smokery this Autumn yeah what do you need to make uh a smokery cuz then we'll keep our chickens there's no pressure now to uh sell the chickens fast we'll just sell them as they sell and we'll smoke them all in the spring in April straight for the summer market for the restaurants who already have all said they want smoked chicken can you make smoked chicken right I didn't realize you could do it so cheaply but the beauty of smoked chicken is it must sit in salty water very precise amount of salt which the old man's going to teach us they've already visited him last year H but he's doing it in Old refrigerators like uh commercial beer fridges or whatever and and it must sit about 2 or 3° C so you can do that with a cool bot because the chickens are already fresh and chilled in the chiller or they're frozen and so we don't need an expensive walk-in Chiller like the one in there is thousands of Euros right because it can take meat down to temperature but a coolbot couldn't do that but it can keep cold things cold so that's like $300 plus a you a nice air conditioner it's going to be like 1,000 and it might be another 1,000 to build our own smokery gear so that's for the chiller this is for the uh smoker which could cost very little you know we could make it for nothing but we're going to want to PVC the room now we've got a cert certified facility it's already got three phase in there we don't need the intern wagon because we're just use a loft next year there's not many people here and then we can make the we want to double the eggs which we can already sell we want to double the market Garden revenue and double the boilers the revenue to pay these four profit sharers right and so these profit sharers will work for eight months a year and uh they will get four months paid leave that's a six month season that's one month um planning and one month Farm caretaker which means you might be here on your own in the depths of winter for one month that means you need to know sales accounting all the animal chores the animal chores are very easy in the winter but all the egg packing so everyone knows everything about the farm which the people I've invited in already do anyway right and they only invited in not because they necessarily have any skills it's because they have showed up with that some of them multiple years in a row and given it all and Prov themselves multiple times that they are the people I would like to reward through going Beyond employment so it's a way of me creating time for myself right because I now am not responsible for all the planning and management I'm responsible for a quarter of it because I do all the pre-season prep and all your sheets and I do all the seeds and orders and I seed all the vegetables and do a little so now I don't even have to necessarily do any of that or I do a quarter of it I can now get three 4 months off farm that gives our family quality of life which which is nice so chicken Surplus um what's that going to produce in Revenue it's going to give us 200 a kilo time 4,000 * 2 that's 1.6 million so €60,000 Revenue at about 60% 60% is a very high margin but if it ain't above 40% I would say don't bother doing it a school might tell you to design a business that makes a loss but that's just bad business whatever way you look at it you don't make a loss or you go out of business right so now Piggies and sheep don't get sold or the odd one gets sold I keep Reuben and two SS all the rest go into sausage and cuts and go into the freezer for next year and so all of our food supply is there and Yanna who's not able to or wanting to do the accounting she wants to focus on ragar more than the business but she is also had this ongoing thing of not having like a set thing it's more taking on the things that weren't getting done well it's not what she wants to do so she wants to actually do the kitchen she's made the best food on any course I've ever run and is very good at managing a kitchen so she could come in then with a very clear role as uh a chef so she cooks three meals five times a week five days don't know how the weekends are done yet but there's only eight people to cook for so it's really easy and all our preserv all our meat all our sausages everything is already in the freezer for the whole year so now she's getting a salary maybe that's separate so the profit sharers design the business to pay the salary of the chef or something like this during the PDC if I do like two pdc's or something that bit I'm reserving the right to earn the money on so I will write a charter of how the business must be so I rain all ownership this is my security I retain ownership of business um I have I'm the only one that would have um veto power regarding branding and Communications not in the sense that no one else would do that but like people can't change the name of the farm and call it something else and they can't you know the their their role is to take these Enterprises boilers like they can't just decide to randomly not do boilers this year and do something else that would have to be a group decision but the charter will say it must run in this way certainly for the first years to see is this format working then ownership of the business can be discussed but right now it can't boilers layers Gardens and it will be sheep so these are four Enterprises that must be managed equally by everyone but not necessarily equally so it would look like someone that's doing Market Garden and it looks like Matt is the person I've invited in to do the management and also sales but the way I wanted to do this the people that I've invited in are all into doing a bit everything it's what makes it fun it's like no one wants to just do boilers fulltime every day every day every day but doing them for two months and then doing the layers for two months is nice so it would look like three Farm managers that spend two months on each of these with an intern and then spending most of your day in the Market Garden so we would all do our animal chores and then go to the market Garden basically and one person would do more of the selling me and someone else would do all of the accounting which which frees up yah from the things she doesn't want to do and it automatically gives us the insight into the decision making that we need that's always been the sticking point because it's happened too far behind our quick Pace on the ground so now it gives us time it gives us security it improves efficiency everyone's happy all the stress is taking out of our relationship which means it's feels interesting again so so this is the profit share is the the Enterprises and so everyone has equal say and responsibility we're all equal decision makers in the Enterprises but that's not to say we're starting all these random new Enterprises we're doing these Enterprises maybe for three years whatever it's agreed upon like for three years let's just do this perfect this design the economy how we need it to be see how it goes then we can discuss you know it become obvious what is a good way forward so then we would each have one intern do that and so we would need to design the pay of this and then all so I retain the right here for my trainings which could look any way but this place is built upon my name as it were I need to protect my name and investment and time and energy which is half my life that to make it risk-free by getting out of all debt I feel relaxed enough to get out of to to do this because it's like I don't have much risk I can remove anyone at you know if it's not working I can remove people they don't own anything in the business I own all the tools that are here right now but if we need new tools that must be planned into the economy of the year you know and if we have breakages that must be paid for by the economy of that year so the things that need to be designed and and what I've done to empower people to step up their game is weekends open for your trainings so they can step into a sort of leadership role there there's 26 times weekend trainings I don't want to do weekend trainings ever because it's just it's very profitable as a thing to do to make money but it doesn't lead to any outcome in my experience and I have quite clear objectives I want to support people who are ready to go and commit their life to it so I meet that by really refining who is here I meet that by not sitting down talking to them but by busting balls with them and they really get that like it's moving away from how the design and set up these things to how to manage them on a day-to-day minute level and that's that's the stage the farm is at now so it makes sense and then those guys can design their own thing to to build an economy excess of this so they have freedom to do that but they can't do a training during my PDC or whatever like and they can't run an internship program they can just use the weekend because it's teasing into this thing it's like I need to keep it controlled that it's not nightmare to manage you know so for like Matt to run a two-day train where you can charge 3,000 CRS cuz you're at rale you're eating good food 30 people 3,000 crowns that's a nice little earner so they can like step into their game if they want to do that but I can retain the safety to deal with my economy if something goes wrong here so the idea is everyone's equally responsible which means everyone Rises and falls together if we really mess up we all lose out no one gets paid if we do really well we all get paid well but equally and that's why this rotation is important so that everyone feels responsible for the the growth and well-being of all the Enterprises not I'm doing boilers so I'm going to make boilers better like you know it just eliminates all that and so I like it it's a it's a really nice opportunity for people who have proven themselves worth that opportunity and would have have a difficult time starting up on their own like because of the cost of land where they are or just the you know there's a lot established here that makes that very nice opportunity and then I don't know how it looks down the line maybe they could you know some people have a kid and disappear and it's not a lifetime thing the way I've presented it is it it's not just a one-year thing it's like hey let's think about three or five years see how it goes and that then means I don't have to train new people each year like the people that know this place really well when they come back here we don't even have to talk about it it's like they already see that he's doing an half and that's very easeful because I want to have I want it to be running as efficiently as possible and it could be running way more efficiently with just four people four people could run double the Productions that are going on here right now and so that's where I'd like to go is to like push how far we can push productivity um that's a big contextual thing push the limits because I feel like this Farm is becoming very valuable as um as a demonstration of the possibilities of small scale Farms or whatever if we can double productions here we will have better economy and figures than any other Farm on the planet I know of actually and that makes it very powerful and that for me is much more I feel like the farm is becoming too important to be affected by me or my relationship with Yanna or anyone that comes here it needs to be more robust than that because it's too important to too many people and so it's a way of me protecting the business growing the business without actually making the farm bigger and without actually taking on all the work and risk myself because I'm getting more and more gray hairs I was watching them fall down the thing today and I don't need to be working this hard I've also run the opposite end of a business where I've run a much more lucrative business without having to do a lot so it's like I'm up for grafting always but I I would like a little bit more reliability and mellowness to give this time so the Sheep might give something like €20,000 as an Enterprise as at net so this is at what's 60% of this uh 96 pigs I think I'll cut out so we're going to cut the forest this winter and that will give us €20,000 which will which will take the pressure off having not sold the chicken now if I launch this online course it will take the pressure off everything but I don't want it to be looked at like that I want it to be looked as a separate thing the the it must be managed internally not needing me to drip Supply so that's going to like sort all this bit it'll sort the cash flow is what I mean we're going to double layers so over the winter the jobs to do here are 2 * Egg Mobile that's going to cost me about €25,000 and take me like 10 days or something I need to build the wagon into a smoker and Matt says the only um limiting factor on veg is the size of the chill and transporting goods so when I go to the UK I'm going to pick up a livestock trailer for two grand this is two grand I'm going to then get a refrigerated trailer a small one and stick it in the livestock trailer I might spend two grand on that too but small enough one that fits in a quite big livestock trailer it's going to cost me ,000 to do the trip and I might stay in really nice places so I might add 500 onto that just you know I might stay in a really fancy hotel just cu okay cuz can no I'll probably go and see friends and stuff and spend a bit of money on food and traveling petrol Etc um yeah and then another coolbot system so maybe that where we have all the fridges and freezers that whole thing becomes a coolbot children room for the market gun really check the coolbot thing it's a very cheap way to build your own fridge not for chilling stuff down but for keeping stuff cool for beer making vegetables d so that's for the veg Garden so suddenly then we've got two egg mobiles that's 1.2 million at 60% what's that 72,000 that market Gardens I reckon we could get that up to well we can keep it at 60 right now now the micro greens are going really well it's €250 a week and we can do that all winter that's like a nice bit of pocket money just for a few trays of micro greens isn't it and it's easy to do in the winter on those shelves so I didn't realize it was going okay I thought they were just uh still playing around so just on that alone that's quite a lot of Revenue uh quite a lot of profit now that will pay these profit shares so we have8 [Music] 248 to pay a chef for six Monon wage it's not a 12 month wage so six month chefing they will need to hire one person in for the PDC maybe um and then that's split for ways that would be all right that's a decent salary for eight months fun work because all the people that are invited find the work very fun and by not having lots of people about it will be very smooth now on top of that we have incomes from you know I have incomes from books and education and they'll they can create income from education too so it could open up any direction but then I will use that income to fund things that aren't those Enterprises so if I want to replace fruit trees next year I'll pay for the fruit trees out of the PDC money or whatever and you know if I wanted like I will still want to develop the farm in ways that aren't decisions they would want to take because of the economy me so I can fund all of those things but all of all the costs of these businesses must be maintained by those four people I I will just be one of those four people or whatever it is it might be three of us and the chef might be four and the chef don't know exactly but that's the pattern of it and that gives me extra I will have a lot of surplus income I don't really spend any money so it's more income than I need anyway but if I do trainings it will give me even more income and if the online training thing successful that will be quite a lot of income so then that money will be used for smart investments into the Empire this is stage three of the vland overhaul see no I would start to then Kickstart other things something that's always excited me is funding the people I believe in like how to take crowd sourcing to another level I.E just funding stuff that's awesome and not expecting anything back just based on the pattern that nature will give something back for that that's always interested me like next level kicks st.com has already bought the like 20 grand startups that are well planned out and they just get funded you know it's just like like I can tell who I would want to support pretty quickly and anyone with the Smart Plan ready to go it's like you can make it happen and there would be Surplus to make that happen which is very nice I don't want to grow the business like I don't want it to keep growing most businesses have that as their aim right but if I can keep people that I can rely on and still meet my educational targets which will become more and more online because I think it will be much more powerful to work with someone through their process in their place then and I can get my wage out of it then I don't there's no point growing at that point if one of these people has a baby buggers off someone else can you know I have a lot of contacts that someone else can be bought in and some people a year will always get to come as intense but I like this model now do what do you think about that where you me and Nicholas and it needs to be us because we we need that information to make decisions and it's always been a frustration that it's not up to date at the speed we need it so I keep my security and the big part of my security is I don't have lots of debt because if like right now the revenue of the farm pays off debt and gets reinvested into stuff we like to do uh but it would be a bit sticky if people are drawing revenue and having to pay off the farm because that's not their they don't own it so it works really nicely if I paid it off or I pay it off with my share or whatever so it keeps it a bit separate it's like everything here is mine already so if you break it you need to pay me back for that and if we need new things we need to design that in so I might pay for this thing because it's to deal with the chicken for this year but it's also an investment for everything but it's also low cost that it's like doesn't make so much difference um but if we're building new egg mobiles they must be taken into the cost of this see what I mean like new developments need to be paid for they would be paid for over 5 years maybe so it would be yeah it wouldn't be very expensive it would be you know I supect we could do it for two grand I might even set a budget of two and a half and build the first one again as a light one so then we have four light egg mobiles because it's too heavy is it and then we might use Kent's land because we can access it from his side but he doesn't want us driving up and down this field but if we're bringing it once every two months I don't think he'll have any problem with that so then we can really follow the chickens behind the cows and sheep uh the Sheep it'll be there won't be cows so my plan is to get rid of cows get rid of sheep totally it would be we'd have to invest in the Sheep flock in in next well somewhere so that would be a cost uh but that could be a cost I take and we share the outcome of that as it were so that's what I'm thinking right now this has all come about in the last months and you have your your Prophet chch the three you've yeah you've been talking about you've invited people yeah one is two are in regardless of whether this happens or not they're just coming anyway and that's the spirit you know they they would come as volunteers anyway so I think that's an important thing to reflect on now how you show up in life leads to interesting things I think I wouldn't give that opportunity to anyone but exceptional people who have proved exceptional over a long period you know it's not it's a quite a serious decision to make I'm basically giving away a bunch of my economy to people who are willing to not be paid to do that anyway so it's it's it's a big deal because it's quite a lot of money but I'm up for it because I don't want employees I feel like yeah I don't want employees cuz then they're not fully responsible either I want people people that fully take on the responsibilities that I can offload and not actually have to check what they've done if they up we all up you know and this is very nice because this is one of the problems in my position here is that I still have to double check and when things go wrong and I didn't double check it cost me loads of money now it doesn't cost me loads of money it costs all of us a bit of money you know what I mean so it takes that risk off me and it takes a load of work off me and it honors the people doing that in a way that they can design their future it's like you know if we need more money then we get more chickens it's up to you we make that decision together you know so I like it it feels like super sexy plan actually and not so much like it you know doubling doubling the uh broilers is not really like this is not double the work because it's the same amount of chickens as this year just smoked I mean that's a bunch of work too but you can freeze it and you can process them when you want so it it really you know it could be we do it a year behind or you know after the winter each year sheep is going to be even easier there's not going to be any milk it's just going to be moving sheep and then it's putting them in a trailer so that's going to be way less time Egg Mobile is going to be double the time but that's easy veg gun's going to be no bigger it's going to be just more optimized it's not going to be much more work it's just going to be potting on stuff I mean it's not that big a deal so it's kind of like for 20% more work I reckon we can like overall we can double everything which is then we're like in a place that excites me again of like how far can you push these things in intensity rather than trying to grow your farm make it bigger make more you know this is exciting for me so that re stimulates my like let's just see how far we go with this cuz there that'll be ridiculous numbers that's mostly going to be happening on yeah that could all happen on three hectares except for the Sheep they need a bit more space minus the Sheep all of that could happen on our Fields so that's quite insane when you think about it thanks for everyone that's watching our videos and commenting and it's amazing to see the channel building and it's you know the videos will always be a bit raw and simple and straight from the heart as it were and that's the way we want to do we're not like making videos for the sake of making videos and I know a lot of you appreciate that so thank you so much for your comments and appreciation that's really you know welcomed and you can find out more in our book making small farms work we really appreciate sending that out around the globe and yeah we'll see you next [Music] time and
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Channel: Richard Perkins
Views: 16,457
Rating: undefined out of 5
Keywords: ridgedale, ridgedale permaculture, farm scale permaculture
Id: CgUEQMsqdiY
Channel Id: undefined
Length: 42min 27sec (2547 seconds)
Published: Wed Aug 02 2017
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