Have you conducted a SWOT analysis of your farm?

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis involves looking at these four areas of your business and using the information you collect to make decisions about the future of your farm.

The first two, Strengths and Weaknesses, are factors that you have the ability to control. The second, Opportunities and Threats, are external factors that you can't control, but can manage so you make the most of the former and minimise the latter.

Strengths

You should begin your SWOT analysis by considering what your farm is doing well. What do you possess that your competition doesn't? Are you or your employees particularly strong in a specific area, such as marketing or productivity? This should provide you with a good idea of where you might be able to grow your business and should focus your efforts.

Weaknesses

Once you've identified the areas in which your business is successful, turn your attention to the areas that could use a little help. Where is there room for improvement on your farm? Do you lack knowledgeable and skilled employees? Do your competitors have an edge on you in certain areas?

Opportunities

Have a look at the trends in your state or territory's agricultural sector, as well as Australia's farming industry as a whole. Are there any areas in which you might be able to grow or markets you could enter? Are there government incentives or new products available that could help you manage your business in a more efficient and effective way?

Threats

Finally, identify the risks your business faces on a day-to-day basis and figure out a way to minimise them. These include factors such as poor weather or natural disasters, which a comprehensive farm insurance policy can help to protect you against.