Sign Missouri Banking Medical History Now

Industry sign banking missouri medical history now

[Music] well hello my friends and welcome to a new training inside of legacy farmer covering this topic in this conversation around farmer metrics now inside of this training series i'm going to be unveiling to you exactly what the bank is thinking when they're looking at your operation a lot of you coming into this you're going to have loans at the bank you're going to be working with the bank very closely and out of every relationship you have inside of your business the one with the bank is is pretty much the most important right it's pretty much the most important because if you go in at the end of the year and some bad decisions were made at the end of the year they can literally tell you we're not financing you next year you have to go find somebody else so that's why it's critical for you to understand how the bank is looking at your operation and how they're making the decisions that they're making okay and inside of farmer metrics and this entire training what we're going to do is cover all those okay i spent six years as an ag loan officer i understand exactly what the bank is thinking and what really tied everything together for me was i got to experience in 2005 our family farm going under right i got to experience the emotional weight that came with that and the resentment and the anger and the the just constant kind of soul searching for my parents once they lost what they'd worked for for 40 years right but then actually understanding why things happened the way they did well i figured those things out when i got into the banking industry i figured those things out when i started to see the numbers i figured those things out when i started to see the decisions that were being made inside of these family farm operations but also too what was not being said you see i had an interesting perspective inside of the bank because when i was having conversations with my clients it wasn't just a light-hearted conversation i couldn't sit there and not tell them what was really going on and the reason is is because i knew what was on the other side of them losing everything because i had experienced the emotional weight my last boss at the last bank for example he's the ceo of the bank he was my high school basketball coach growing up he was my high school basketball coach growing up he didn't even grow up on a farm didn't even grow up on a farm so he would tell me hey jace like you know our position with this with this client is tightening up a little bit i need you to be direct with him but at the same time don't say something that's going to piss them off and make them take their 100 grand a year in interest that they're paying us and go to the bank across the street and so my my overall opinion right there then and my overall question is okay so you want me to lie to them and i couldn't do it i couldn't do it he's like well no don't lie just be direct no you want me to lie to them you want me to tell them and sugarcoat the truth to make them think oh yeah we're good to go you need to be there watching out for this but we're good to go overall you see he doesn't understand the weight he doesn't understand the risk and the challenges and what will happen to these families if they do make poor decisions if they don't know what the facts are and they end up losing everything and this is how a majority of bankers are today now am i going to war with the banks no i'm just saying the system is kind of broken we have a lot of people giving financial advice and they don't really understand the game that they're playing in or that they're trying to advise on so inside of this training series we're going to go through the problem possibility the principles and then finally the production and the plan and inside production the plan i'm actually going to lay out farmer metrics walk you through an example show you how to set up your account and your spreadsheets so that you can know exactly what your position is with the bank on a month-to-month basis now getting started inside of the problems problem number one you think the bank will save you i'm going to repeat that you think the bank will save you you see a majority of farmers and ranchers they find they find peace and they find this just this place of peace knowing or telling themselves a story around oh well if things don't work out this year um i have equity and whether i whether i built that equity up myself or i inherited it from my family the bank will take care of me the bank will take care of me we'll just refinance everything they'll figure it out and and you know the bank will take care of me there's a vast difference between a farmer or rancher or business owner okay or business owner just in general there's a there's a difference between somebody that built it from nothing versus somebody that's somebody that just inherited it you see when you just inherit assets and you inherit equity when you lose money in the year it's no big deal the bank's going to save you they're just going to term out you and and take another mortgage on some ground eat up some more your equity and you're going to go about doing the same thing next year versus if you had to build this thing from literally ground zero and you had no help getting it started this isn't your story this isn't what you're telling yourself because you know deep down if you lose 300 grand in one year for you mentally it's like that's 10 years of work that's 10 years of equity gone like that and the bank is not in a position where they're going to save you okay so that's problem number one is you think the bank will save you and you tell yourself this happy and peaceful story throughout the year to keep you from facing the facts of reality that the bank will step in and save you at the end of the year problem number two with some farmers and ranchers and business owners i want to be clear i'm talking about just straight up business owners that have have loans at the bank because this is the same story different industries maybe but same stories across the board number two you've been conditioned to believe that your banker is a trusted advisor again you've been conditioned to believe that your banker is a trusted advisor here is the biggest problem with this majority of bankers today specifically ag bankers okay they are making a salary they are wage earners they are making anywhere from 50 to 100 grand a year so when it comes to writing hundred thousand dollar checks or going two and a half million dollars in debt or buying a three hundred thousand dollar piece of equipment there is that there is a different weight that comes with that there are different emotions that come with that the person that handles being three million dollars in debt running an entire team having you know five million dollars go through their accounts on an annual basis is vastly different it's vastly different from the person that's literally sitting there working eight to five every day five days a week wait cannot wait until friday at 5 pm when he gets to go home he or she right and collecting 50 to 75 000 a year and can't wait for their two weeks of vacation like it's a different game it's a different field but yet again how many farmers and ranchers walk around and when their banker speaks or their banker comes out to their farm operation they take their advice like it's just absolute like gospel like it's the absolute truth and this is a massive problem because they're not in the game with you and we're going to talk about that in one of our principles but a lot of us we believe that the banker's a trusted advisor i'm sorry but i don't know a banker that's going out and writing 250 000 checks i don't i don't maybe the owner of a bank is but the owner of the bank is not working with farmers and ranchers or business owners individually he hires loan officers to do that he hires people to do that and he pays them a wage so a lot of people they're taking advice and they're taking counsel from somebody that doesn't understand the weight of writing a three hundred thousand dollar check that doesn't understand the weight of being two million dollars in debt that doesn't understand the emotional weight that comes with all of this managing a team having multiple different place or things happening inside of your business at one time it's a different conversation problem number three you avoid the numbers at all costs because deep down you fear the truth you fear the truth of the numbers and let me change my uh let's get some green here you fear the truth of the numbers a lot of us do this deep down there's like this feeling deep inside of you you know you know when you're making decisions throughout the year prices drop or whatever it may be you know what the numbers are going to say you know things are not looking good but thing is is that the numbers scare the out of you so you avoid them at all costs instead of facing them head-on because the stories that you can tell yourself if you can mentally just get over these bad couple days when prices dropped or you had massive breakdowns you know huge bills coming if you can just tell yourself happy and go lucky stories saying hey everything's gonna work out everything's gonna work out i'm not even gonna look at the numbers because because the reality is i know deep down everything's going to work out at the end of the year and then it doesn't and then it doesn't and how many people are absolutely frozen and refuse to look at the numbers because they are scared of the truth that the numbers will disclose and here's the thing my friend numbers don't lie numbers across all every area of core four they don't lie the the the scale for body doesn't lie right the number of stacks you complete inside of being doesn't lie the number of date nights you take your wife and your kids on doesn't lie the finances inside your business those numbers they don't lie the numbers always tell a story the numbers always disclose the truth and again a majority people they avoid the numbers at all cost because deep down you fear the truth of the numbers moving into problem number four you shoot from the hip with every financial decision telling yourself everything will work out in the end next year will be better yep i know we had we had record rainfall this year um weather was just once in a you know once in a century type of storms this year next year we'll be better next will be better all we have to do is just get to next year hey honey i know things are stressful right now i know things are struggling right now but just give me six more months give us 12 more months give us two more years i'm going to take over more farm ground i'm going to work harder i'm going to work harder i'm going to work harder and we will one day reap the rewards of this how truthful is that what's the likelihood that that actually happened because it's not very high it's not very high and you know this that's why you're here with me so again a majority of farmers and ranchers and business owners shoot from the hip with every financial decision telling yourself everything will work out in the end instead of facing the facts and facing the truth of those decisions today and looking at the numbers we like to tell ourselves these stories and you guys see why i took you through the entire training on the stack the stories right they lead to who you are being who you are being leads to what you are doing and what you are doing leads to what you are having and the stories that people like to tell themselves to to hide the truth of their actual financial position they're deadly they're deadly they will take everything you have built and burn it to the ground just like that just like that no sympathy whatsoever they will destroy everything that you have worked your entire life to build and they will take your family down with it so again problem number four you shoot from the hip with every financial decision telling yourself everything will work out in the end number five you literally don't know what you don't know when it comes to the important financial metrics inside of your business this is absolutely true i have a business management degree okay i took finance classes in college that i paid 100 grand for you know this big education and the thing is when i leave the the banking industry and get into my own business that education did jack for me i was not trained at all on how to know the key metrics and make financial decisions inside of my business the other thing compare this to farmers and ranchers and other business owners okay the bank is not training you the bank does not know your ag business degree did not train you on how to know the numbers okay now you may know what your profit and loss is on a specific crop and things like that that's great right but again the best and or the most important relationship that you have inside of your operation is the one with the bank and if you don't understand the key metrics the key numbers that the bank is looking at to make decisions on how much to finance you how much your line of credit should be are you cash flowing this year what is your credit rating with us what should your interest rate be if you do not know those things then you're going to struggle you're going to struggle and again it's not that it's your fault you literally don't know what you don't know because of a lack of education there's a gap in the system not really disclosing the key things that people really need to know in order to make the right financial decisions inside of their operation or business whatever it may be okay now we've covered the five problems my friends we're gonna go a little bit longer on this video than we do in the other ones just because these things are critical these things are so critical so we're moving in now to the possibility and possibility number one is you realize that the bank is a for-profit business and like all for-profit businesses when it gets to the end of the line they will do what is best for their stockholders it's just the truth it's just the truth even if you're a small if you bank at a small community bank in western kansas for example the banks that i worked at there's a board of directors there are stockholders that have an interest in gaining a return on their investment in the bank so at the end of the day if it comes to either giving you another year to figure out inside of your farm operation and start making better financial decisions versus protecting their stockholders interest and making sure that their stockholders receive a profit the bank is a for-profit business it's how this world works it's how it all works so you need to be aware of this okay now moving into possibility number two you realize your banker isn't on the field but in the stance again you realize your banker isn't on the field but in the stance okay for example here for example here when i was sitting in the bank i was i was providing counsel i was providing the raw truth to my clients because i knew the weight that they were feeling i knew what the field looked like because i saw my family playing i grew up raising cattle and sorting cattle and working on the feed yard every day like that's what i knew i had been in the game now did i have the financial backing that was i making the big decisions no but did i see what happened and why our entire family farm operation went under yes okay and a majority of bankers today they're coming fresh out of college my friends they're coming fresh out of college they're looking for a job they're they're starting them at 40 to 60k a year and they're just training them on how to be robots inside of there okay they don't understand the weight of actually being in the game they don't understand the challenges and the struggle and the fear and the stress that you feel being in the game now this is true for all business owners there's a difference between w-2 employees and business owners me inside my business i spend hundreds of thousands of dollars per year just on facebook ads so there's a weight that comes with this do i have a team do i have an employees that i'm responsible for do i have their families that i'm responsible for absolutely there's a weight that comes with this right now when you're talking to a farmer or a person that's a chiropractor for example a chiropractor with a team in an office and doing 2 million a year in revenue or whatever it is it's the same conversation between the two because we all deal with different business challenges but when you're taking counsel from an employee that is literally working nine to five can't wait till friday at 5 pm to go home and drink some beers and hang out for the next two days and is literally just cannot wait until their two week vacation comes up that is the wrong person to be taking counsel from but yet we do it all the time your banker majority of you some of them maybe some of them do have big farm operations i doubt it but some of them might but a majority of them they're in the stands they're giving you counsel from in the stands it's like tom brady taking advice from a random fan at a new england patriots game that's like it's idiotic it doesn't make any sense the stan the the person in the stands doesn't understand at all what it's like when you have a 300 pound defensive lineman coming at you like they don't understand that there's no no way they could understand that it's different my friends being on the field versus being in the stands and bankers today they're in the stands and until they start signing the front of the checks and stop signing the back of them they do not deserve my attention their opinion does not matter to me i am going to make my decisions or take counsel from somebody that's actually running a successful business my biggest mentors right now the reason i use the chiropractic example is because he runs a chiropractic office he grew up on a farm in missouri he understands my me growing up what i went through his family still farms in missouri they're basically broke and these things but he understands business concepts he understands how to work through those things and he understands what i'm going through which makes my conversations with him extremely extremely valuable and i take counsel from him is he in a completely different business yes but he's in business he is in business so my friends again your banker isn't on the field with you he's in the stands or she is in the stands moving into possibility number three you realize the only path to financial success success and security is to become obsessed with the numbers inside of your business you have to become obsessed a majority of us for a long time we avoided the numbers because the numbers tell a story and for right now for a lot of you the story is probably not going to be very good it's probably not going to be very good but how are you supposed to know what the hell you're supposed to do next and what decision you're supposed to make next if we don't know the facts of the numbers so you have to become a student of the numbers you have to become obsessed with the numbers inside your business and again the most important ones are the key metrics that the bank is using to make decisions on financing your operation like the looking at it from the banker's perspective shows the true health of your business that's really what you need to understand here yes you can make decisions on what your profit loss is going to be if you plan this crop versus that crop i get that those small things and you are the expert there but when it comes to the success and just cash flow of your operation and making sure there's money to fund your operation your business you've got to understand what the bank's looking at as well and in order to do that you have to become obsessed with the numbers inside your business number four you analyze every financial decision you make going forward because you realize the results results are found in the numbers in the beginning when you're first facing the facts of the numbers inside of your business i had to go through this as well i had to go through this as well it was painful as hell it was so hard to face the facts of the numbers inside my business it was so painful and just like what i said in the problem i avoided it for a long time because i didn't want to see it i didn't want to have to feel it i did not want to have to feel the weight of that pain that i was dealing with but here's the deal though is when you look at the numbers and you see the results there's either going to be bad results right which is what a lot of you are going to feel right now but there's also going to be good results and when you earn the good results the good results are a result of you making changes right you you starting to change who you are being what you were doing and at the end of the day your result is is a change in what you're having so there's a lot of power and a lot of empowerment that comes from looking at your numbers and seeing good results because how does that fuel your production oh it's going to fuel it massively how does that fuel your power it's going to fuel it massively because now you're confident you figure some things out you solve some problems and you've proved to yourself that you can solve the problems and that's why it's powerful to look at the numbers one because we need to know when stuff is not good and two we need to know when we actually have done a great job we need to know when stuff is bad and we need to be making changes and we need to know when things are really good and we need to keep doing what we're doing and executing in the right path the majority of people today they don't have any idea where they're at so how are you supposed to make any decisions going forward all right then finally moving into possibility number five you've become a student of the numbers because you recognize you can no longer just be a farmer who knows how to put a crop in the ground or know how to sell a product crop consultant seed salesman crop insurance whatever it is right so this is this is um this possibility is aimed towards farmers or just business owners in general like you have to become a student of the numbers because the numbers are what drive all success and all losses inside of your business and you can't just know how to put a crop in the ground anymore you can't just know how to raise some cattle and put some you know make sure your cattle are gaining a certain x amount of pounds per month you can't just be that person anymore you have to become a student of the numbers you have to understand your financial side of the business better than your banker does and then finally we're going to get into the problem versus the possibility i understand we're about 19 minutes now stay with me here because i still want to continue rolling through these things so problem number one was you think the bank will save you versus the possibility for you you realize the bank is a for-profit business and like all for-profit businesses when it gets to the end of the line they will do what is best for their stockholders moving into problem number two you've been conditioned to believe that your banker is a trusted advisor versus the possibility for you you realize your banker isn't on the field but in the stands moving into number three you avoid the numbers at all costs because deep down you fear the truth of the numbers versus the possibility for you you realize the only path to financial success and security is to become obsessed with the numbers inside of your business number four was you shoot from the hip with every financial decision telling yourself everything will work out in the end versus the possibility for you you analyze every financial decision you make going forward because you realize your results are found in the numbers and then finally number five problem you literally don't know what you don't know when it comes to the important financial metrics inside of your business versus the possibility for you you become a student of the numbers because you recognize you can no longer just be a farmer or know how to sell a product my friends that brings us to the end of this training this introductory training two former metrics and covering the problem and the possibility what i need you to do now is share your biggest takeaway in the comments below we covered a lot of things my friends so which ones were the biggest points that really hit home for you which ones have you personally experienced with share your biggest takeaway in the comments below and inside the next training we're going to get moving to the principles and i will see you there