The Power of Paradigms
Summary
TLDRThe script emphasizes the importance of challenging traditional ranching paradigms to achieve profitability. It defines profit as the surplus after covering all costs, including market rent, labor wages, and asset interest. Many ranchers view ranching for profit as an impossibility, but the speaker argues that changing this mindset is crucial for success. Paradigms guide our thinking and actions, and having the right one can lead to better decision-making and a more profitable business. The script encourages ranchers to adopt a proactive approach to market risks and weather management, suggesting that a shift in perspective can pave the way for stronger businesses and happier lives.
Takeaways
- 💰 Profit in ranching is defined as the surplus after covering all costs including wages, rent, interest on assets, and production costs.
- 🌐 Many ranchers are skeptical about making an economic profit from ranching, viewing it as an unattainable goal or an oxymoron.
- 🔄 The belief in the profitability of ranching is a prerequisite to achieving it; mindset is crucial for success in any business.
- 🧠 Paradigms are subconscious rules that guide our thinking in various aspects of life, including business and ranching.
- 💡 The power of paradigms should not be underestimated; they can either empower or limit one's ability to succeed.
- 🛒 Believing in the ability to influence market prices and manage risks can lead to more effective marketing strategies and potentially higher profitability.
- 🎯 Actions are dictated by beliefs, and changing one's paradigm is essential for taking different actions that can yield different results.
- 🌱 The paradigm shift is necessary to see things differently and to act differently, which is vital for achieving success in ranching.
- ⛔ Complaining about uncontrollable factors like weather is unproductive; instead, focus on what can be controlled to build stronger businesses.
- 🛠️ There are many strategies to prepare for and manage through extreme weather events, which can be part of a successful ranching paradigm.
- 🏫 The primary purpose of education in ranching is to change the way people perceive their ranches and challenge their existing paradigms.
- 🔑 Having a different paradigm can lead to better decision-making, a sense of control, and ultimately, a more successful and fulfilling ranching experience.
Q & A
What is the definition of profit in the context of ranching for profit?
-Profit in the context of ranching refers to the amount left over after covering all expenses including market rate rent for the land, competitive wages for labor, interest on assets, and all other production costs.
Why do many ranchers believe that ranching for profit is not possible?
-Many ranchers believe that ranching for profit is not possible because they hold the paradigm that ranching isn't profitable, which influences their actions and results.
What is a paradigm and how does it influence a rancher's business?
-A paradigm is a set of subconscious rules that guide a person's thinking. In ranching, the paradigm can influence a rancher's approach to business, affecting their actions and ultimately their profitability.
How can a rancher's belief about the market impact their marketing program and profitability?
-A rancher who believes there are many ways to market livestock and manage market risk is likely to have a better marketing program and be more profitable than someone who sees themselves as a price taker at the mercy of the market.
What is the relationship between a rancher's beliefs and their actions?
-A rancher's beliefs dictate their actions. If they believe in the possibility of profitability and take steps to achieve it, their actions will be more likely to result in a profitable ranch.
What is the significance of changing one's paradigm in the context of ranching?
-Changing one's paradigm is crucial because it allows a rancher to see things differently, which can lead to taking different actions that can improve the profitability and success of their ranch.
Why did Stan Parsons, the founder of RMC, emphasize changing the way people see their ranches?
-Stan Parsons believed that changing the way people think about their ranches and challenging their paradigms was the primary purpose of the school, as it can lead to better decision-making and ultimately more successful ranching businesses.
What is the role of belief in building stronger businesses and supporting happier, healthier lives for ranchers?
-Belief plays a significant role as it can motivate ranchers to take actions that build stronger businesses and support a better quality of life, provided they believe such improvements are possible.
How can a rancher prepare for and manage through extreme weather events according to the script?
-The script suggests that having the right paradigm, such as believing there are many things one can do to prepare for and manage through extreme weather events, can lead to better decision-making and a greater sense of control.
What is the main takeaway from the script regarding the importance of paradigms in ranching?
-The main takeaway is that paradigms are powerful and can either limit or enhance a rancher's success. Having the right paradigm is essential for profitability and overall success in ranching.
How does the script suggest a rancher can achieve different results in their business?
-The script suggests that to achieve different results, a rancher needs to adopt a different paradigm, which will lead to different actions and, consequently, different outcomes.
Outlines
💰 Ranching for Profit: Paradigm Shift
This paragraph discusses the concept of profitability in ranching, emphasizing that true profit comes after covering all costs including market rent, wages, interest on assets, and production costs. It highlights the common belief among ranchers that profitability is unattainable, referring to it as an 'oxymoron'. The speaker argues that changing this belief is a prerequisite for making a ranch profitable, as paradigms shape our actions and outcomes. The importance of having the right mindset and challenging existing paradigms in ranching is stressed, as it can lead to more control, better marketing programs, and ultimately, success in the industry.
Mindmap
Keywords
💡Profit
💡Market Rate
💡Competitive Wages
💡Interest on Assets
💡Production Costs
💡Paradigm
💡Price Takers
💡Market Risk
💡Beliefs
💡Actions
💡Ranching for Profits
💡Victimization
Highlights
Profit in ranching requires covering market rate rent, competitive wages, interest on assets, and production costs, with what's left being profit.
Many ranchers consider 'ranching for profit' an oxymoron, reflecting a belief that profitability is unattainable.
The belief in the impossibility of profitable ranching is a self-fulfilling prophecy that hinders success.
Believing in the profitability of ranching is a prerequisite for making a ranch business profitable.
Paradigms are subconscious rules that guide our thinking and can significantly impact the success of a ranching business.
Having the wrong paradigm about ranching can guarantee failure, while the right one does not guarantee success but is essential.
Ranchers who believe they are at the mercy of the market have fewer options than those who believe in managing market risk.
Beliefs dictate actions, which in turn determine results; different results require different actions and paradigms.
Changing one's paradigm is crucial for doing things differently and achieving different results in ranching.
The paradigm that 'you can't do anything about the weather' is contrasted with the belief in managing through extreme weather events.
Complaining about uncontrollable factors is unproductive; focusing on building stronger businesses is more beneficial.
Teaching ranching for profit aims to change the way people perceive their ranches and challenge their paradigms.
Changing paradigms is identified as the primary purpose of the ranching school founded by Stan Parsons.
The speaker initially misunderstood the importance of challenging paradigms but later recognized its significance.
If a rancher wants different results, they must adopt a different paradigm and approach to their ranching business.
The transcript emphasizes the power of belief and paradigm shift in achieving profitability and success in ranching.
Transcripts
here's the ranching for profit
definition of profit
you've got to be able to pay market rate
rent for the land
competitive wages for the labor even
family labor
you've got to be able to pay interest on
all of the assets used in production
even the cows
and then you've got to be able to cover
all the other production costs
and after doing that there has to be
something left over
whatever's left is profit given that
definition there aren't very many
ranches that make an economic profit
in fact a lot of ranchers don't even
believe it's possible i can't tell you
how many ranchers tell me
ranching for profit is an oxymoron and
they're right
at least as long as they cling to the
ranching isn't profitable paradigm
they're right
as long as they believe that ranching
isn't profitable their ranch won't be
profitable
now of course just believing that
ranching can be profitable isn't enough
but it is prerequisite to doing the
things that it takes to make a ranch
business profitable
paradigms are subconscious rules that we
establish to guide our thinking
we have political paradigms religious
paradigms social paradigms
and we certainly have a lot of paradigms
about ranching
most people underestimate the power of
the paradigms they hold
having the right paradigm does not
guarantee success but having the wrong
one
that guarantees failure consider this
who has more options someone who
believes that ranchers are price takers
and at the mercy of the market
or someone who believes there are lots
of ways to market livestock and we can
do lots of things to manage market risk
who do you think might have a better
marketing program who do you think is
likely to be more profitable
who do you think feels less like a
victim and more in control
your beliefs will dictate your actions
and your actions determine your results
so if you want different results you
need to take different actions you need
to do things differently
but you will not do things differently
and in fact you cannot do things
differently
until you see things differently until
your paradigm changes
compare these paradigms you can't do
anything about the weather
or there are lots of things you can do
to prepare for and manage through
extreme weather events
which paradigm is likely to lead to
better decisions
which one would make you feel less like
a victim and more in control
which one is more likely to set you up
for success
look there's no point in complaining
about things you can't do anything about
but there are plenty of things we can do
to build stronger businesses
and support happier healthier lives at
least there are
if you believe there are
when i started teaching ranching for
profits over
35 years ago stan parsons who founded
rmc in the school
he told me that the primary purpose of
the school was to change the way people
see their ranches to change the way they
think
to challenge their paradigms
at the time i didn't get it to challenge
people's paradigms
really i thought the purpose had to be
something bigger than that
well i've come to understand that
there's nothing bigger than that
look you don't need to change and your
ranch is perfect just the way it is
it is it's perfect to give you the
results that you're currently getting
but if you want different results you
need to do things differently
and to do things differently you need a
different paradigm
you
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