Entrepreneurship

For the Love of Business

silver-birch-bark_mediumI was nine years old in the fall of 1992. It was a cool afternoon in northern Denmark, as the sun began to set behind the trees. I was working with my father in the front yard, cutting and splitting firewood for the winter.

At the end of the day, we had a substantial birch log left on the lawn.   At three feet long, it was too large to split. So my father issued a challenge; if I could saw the log in half by the following weekend, he would issue a crisp 100-kroner bill, equal to about $15.

I was on the job immediately after school on Monday. With that much money on the line (my allowance at the time was a weekly $3), the work simply had to be accomplished. But I was the smallest kid in my 4th-grade class, and it became obvious that the log would be a challenge.

My father heard my daily reports, my sinking into despair, as the weekend closed in and the log appeared triumphant. “If only I could have a bigger kid help at the other end of the bow saw,” I said one evening. My father smiled. “I told you I would pay 100 kroner when the log was cut. I didn’t make any rules about how you go about it.”

That day I learned the difference between schoolwork and the real world, a difference that cannot be overstated. In school, you have to do your own work to get the points. You have to follow the rules to complete the assignment. But the world is different. The world cares about results, not about made-up rules. The world lets you find your own assignments, as many as you want, and write your own rules. The world has customers instead of teachers, and happy customers don’t care how you got it done.

With that in mind (a lesson that I’m sure my father was pleased to stage) I hired a friend.   I paid him $3 for his efforts, and made full disclosure that I would myself pocket 4 times that amount. That fact didn’t bother him at all; he would make a week’s worth of allowance in an hour’s work (he was much larger and more effective at sawing than me), and he was quick to accept the invitation before I offered it to someone else. An entrepreneurial seed was born.

Christian

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Strategy

Letter to the Editor

csa-giving

Dear Friends at Modern Farmer Magazine,

Rachel and I read your publication with enthusiasm.  From stunning photography to witty prose, each issue is an encouragement to our agricultural ventures.

With that in mind, may I humbly share a concern in your September 2015 issue?

We couldn’t find the old-fashioned “letter to the editor” box, so we will share it here instead, and tag you on Twitter.  This is, after all, Modern Farmer Magazine. =)  

On page 47, David Zuckerman writes about his experience running CSAs.  As a fellow direct-to-consumer farmer, I’m not so sure about his recommendations on pricing:

“See what other area CSAs charge and study the price of seasonal produce at…and supermarkets. Then try to undercut them all.”  

That strategy may grow a customer list, but it defies the laws of microeconomics to expect that a small-scale producer can compete with supermarkets on price, and still make a decent living.  Supermarkets, and the corporate farms that supply them, are designed to be efficient and price competitive.  They are machines built for volume over profit margin, and it isn’t possible for a small farmer, taking all costs into account, to get properly compensated for her work while fighting them in a price war.  That would be like asking a one-man, hand-made furniture producer to compete with prices at IKEA.  He simply can’t do it.

A small farmer provides a completely different customer experience.  She replaces the soulless supermarket with a transparent production system, a smiling face and a compelling brand.  On that playing field, she is untouchable.  She should talk up the clean and safe production practices, show pictures of happy grazing animals, and then let customers draw conclusions about those “other” producers.  Fortunately for her, a growing crowd of customers are figuring out that food decisions are too important to be left up to price.

Sincerely,

Christian

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About Us

Ladies and Gentlemen, We Have an Announcement.

IMG_4408  <–  That’s the Ahlmann clan right there, in case we haven’t gotten to meet you yet. And depending on when that happens (us meeting you), there may be one more of us.  Yes, indeed, we’re expecting another Ahlmann at the end of January.  Caleb and Elizabeth are pretty sure it will be a baby girl, which means they’re carrying around a stuffed pink sheep and announcing it to be “mommy’s baby.” If you have seen us recently, you’ve probably noticed that Rachel has a little bump.

On this blog, the only change you might see is that posts could happen after midnight, in between late night burpings and diaper changes.  We will do our best not to let sleep deprivation interfere with the value of the content.

Rachel and Christian

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Personal Growth

The Emotional Bank Account.

dog-lamb-589x295Have you met that married couple dedicated to a life of mutual irritation? How about the other one, the two that are so in love that their surroundings become ill?

Before you click to a new window, let me assure you that our ag-business blog has not turned into marriage counseling. It just happens that there are multiple applications here. Stay with me.

The secret behind both couples is what Stephen Covey calls:

The Emotional Bank Account.

Think of an account where good deeds add credit while irritations destroy it. For example, if I make coffee for Rachel, it adds credit to my account. If I do the dishes, more credit.   But if I drag my muddy mountain bike through our college apartment, it burns credit. (That never happened, obviously. Just an example!)

All people, in business, friendship and marriage, have emotional bank accounts with each other. When accounts are full, the other can do no wrong. When they are empty, nothing works. In the latter scenario, comments like “ I can’t believe she blew up over such a little thing” are common. Why did “she” blow up? Because the account was overdrawn.

Little things, over time, make a big impact. Consider smiling, saying “thank you,” and looking up from your device when someone walks in. These are freebies, deposits into emotional bank accounts that come in handy later.

The beauty here is that you can actually make people like you, or even love you, by simple acts. In marriage, it means that saying “we just don’t love each other anymore” is as ridiculous as saying “my car just isn’t clean anymore.” In both cases, the power to fix it is entirely yours.

Okay, so maybe that did turn into a marriage blog. But I promise the emotional bank account exists with everyone. Try it, and tell us what happened.

Christian

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Strategy

“Home of the Throwed Rolls.”

home-of-the-throwed-rolls      Imagine with me that a friend in 1942 told you “Hey, I want to start a diner in the town of Sikeston, Missouri.” You might respond by asking a few questions, like “where is Sikeston,” and “how does that possibly sound like a good idea?”

Imagine now that your friend said “it is on a lonely stretch of highway north of the Oklahoma border,” and “because I expect that Elvis Presley, Jay Leno and Morgan Freeman will visit it.” Ignore for a moment the anachronism that your friend in 1942 would have little knowledge of Elvis Presley (who would have been 7 years old,) much less Morgan Freeman or Jay Leno. You would likely tell your friend “you are insane. Stop it.”

And you would be wrong.

In 1942, the Lambert family opened Lambert’s Café in Sikeston, Missouri. In 1976, Norman Lambert threw the first roll at a waving guest across the crowded restaurant, launching (no pun intended) the “throwed rolls” for which Lambert’s is now world famous, as proved by the all-star guest list including the three above and many more.

To be clear, Lamberts is not just a diner with rolls flying across the room. It is also a very well-managed restaurant with a focus on creating an overall remarkable experience for guests.

The point is that, while the obvious answer to “let’s build a diner on a lonely highway in Missouri” would be “no,” it’s not always about the location, or even the concept of a diner. It’s about the power of a family and team determined to create something remarkable, and the effort the world will go through to find them when they do.

Christian

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Economic Development

The Fight Against Poverty (and Hippos.)

hippo-yawningThere’s a tragic and amusing story behind the title of Ernesto Sirolli’s book, Ripples from the Zambezi.

As a young man, Sirolli worked with groups sent from Italy to Africa for “economic development.” As was the tradition (and unfortunately still is), one group went in search of problems to fix, in this case along the Zambezi River. They found that the locals had no agriculture, despite fertile soils, and determined to bless them by introducing Italian farming.

A few days before harvest time, the Italians were quite proud of themselves. They had taught (or at least demonstrated) agriculture along the river, and saw an abundant crop in their future. Unfortunately the local hippopotamus population saw the same thing. They came out of the river and ate the crop.

“Why didn’t you tell us about the hippos?” asked the Italians? The answer came calmly: “ You never asked.”

And therein lies the problem with billions of dollars of “economic development” funding supplied by wealthy countries around the world. “They never asked.”

Michael Matheson Miller covers the same topic from a different angle in the Poverty Cure series, where several businesses in struggling countries face competitive pressure from the “relief efforts” that flood their market with free goods.

So, what is the solution? According to Sirolli, it is called “facilitation.” Instead of marching into a deprived area on a mission, his team now hangs out at the local coffee shop. There they learn what entrepreneurial initiatives already exist, and offer to support them. The locals, who are more clever than we give them credit for, then do the work with a little support, wisdom and encouragement.

Christian

PS.  For more from Ernesto Sirolli, consider spending 17 minutes on his remarkably amusing Ted Talk:  https://www.youtube.com/watch?v=chXsLtHqfdM

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Personal Growth

Character is the New Black

It may surprise you, but I can be socially awkward.  Oh yes!

I recently typed “how to make friends with anyone” into Google.  Great tips popped up, like “hold eye contact” and “give positive affirmation” and “listen, don’t talk.”  All good things.

Then Steven Covey ruined my attempts to duct tape over my social weirdness.  In his book, The Seven Habits of Highly Effective People, he talks about the character ethic versus personality ethic.   The personality ethic teaches you to put on a great face, smile, make eye contact, etc., without changing who you are within.  The character ethic teaches you to improve yourself.  For example, instead of trying to make the person you are talking to think you care about them by maintaining eye contact, try actually caring about them and acting accordingly.

This is extremely relevant when talking to customers.   If I try to sell our products to a customer, I actually need to care about whether or not they need them.  If I don’t care and I just try to make the sale, they will see through me.

Every list in my Google search was more of a Band-Aid.  It turns out I actually need to improve myself.

Pretty simple, right!  Except sometimes it is actually quite hard.

Rachel

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Personal Growth

College Degree DONE. Show Me the Management Suite.

Pretty-Photo-of-Residential-Green-Houses-at-Night-Time1-300x199My first job after college was on the “plug line” at a commercial greenhouse in Manhattan, Kansas. The plug line is as sexy as it sounds, a conveyer belt surrounded by college students, all aiming to “plug” seedlings into moving planting trays fast enough to avoid a pileup. Only I wasn’t a college student, but a recent college graduate. And I was making $6.25 per hour.

That would be quickly solved, I reasoned, once I applied my bachelor degree in horticulture to an epic greenhouse improvement program. I began taking notes, which I brought into the owner’s office, and asked him to take a seat. I would, in very short time, explain how he might repair the miserable business he had taken 30 years to build.

To my surprise, the proprietor had little interest in repairing anything. He didn’t care about my academic insight on synthetic plant hormones or their capacity to reduce his greenhouse space by eliminating the need for half his propagation materials. He didn’t care that he was wasting time on inefficient watering methods. He was, apparently, making a fine living and perfectly happy with it. To get that message across, he handed the next promotion not to me, but to a smiley dental hygienist who knew nothing about plant hormones, and was only there to make a few bucks for dentistry school.

I learned a lot of things that spring, but mostly that a good college degree is best used in combination with a lifelong dedication to understanding and appreciating people. I’m still working on that one.

Christian

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Strategy

Can I Quit My Day Job and Make…..

abcfbca1 As pathological encouragers of small agricultural business, Rachel and I are occasionally asked a variation on the following question: “Can I survive on a cottage business that sells scented candles? How about Merino wool, lavender oil, or bee’s wax?”

The answer is: “Maybe.”

Consider the following: How many dollars does the average American household spend on your future product? The answer to that question will help you figure out how many customers you need. For example, if you plan to sell pastured meat to customers who spend $500 per year, you need 400 customers to gross $200,000, netting a decent living wage after expenses are paid. That’s 400 names, addresses and Christmas cards you need to keep track of.

Meanwhile, a purveyor of fine candles might be lucky to sell $50 worth of product to a given household, requiring instead 4,000 customers to make a living wage.   That’s a lot more Christmas cards.

Local cottage business is easier with products like beef, dairy or jam, items that represent hundreds of dollars spent in a typical household.   Scented candles and other products that claim a smaller percentage of household income will require more customers, either from a high-volume store-front (think city) or a story-based online store with great photography.   If those appeal to you, you’re ready for the candle business. If you would rather sell to friends and family at the farmer’s market, you’re better off making cheese or bacon.

Christian

(PS.  Thank you all for following along with our ag-ventures on this blog.  We’re happy to see the growing crowd subscribing to learn from our mistakes instead of making the same mistakes at home!  Rachel and Christian)

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Personal Growth

Moving the Salt Shaker

I used to assume that leading required tactics like those from leaders with strong personalities. If I was going to get anything done, I thought, I would have to drive it through. That might work for others, but it almost never works for me. I end up un-genuine, and everyone can see it.

In his book Setting the Table, Danny Meyer explains that leadership is like keeping a saltshaker in the middle of a table. People around you will always move the saltshaker a little off center, off the standards you expect. Your job as a leader is to move the saltshaker back to the middle of the table, calmly but consistently, before it gets to the edge. Meyer calls this leadership style “constant gentle pressure.”

This totally works for me. Alternatively, muscling the saltshaker off the floor is just the pits.

Rachel

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