Actions will speak louder than words in 2012 - Richard Rasmussen

The New Year has arrived, pretty much as normal. But for many printing business proprietors there will a great deal more uncertainty about this year, and what the future holds for their business.

One thing is for certain – this year will be decision time for many, as remaining static will not be an option. Many should be making the big calls to change the way they operate or whether they actually continue to operate.

Often these calls are made too late. Ask the 20 or so businesses that went under in the past six months, “if they had their time over, would they have acted more swiftly?” and I’m certain the vast majority would have said “yes”.

The big business decision is not just for those in financial trouble, it’s for anyone who can see the writing on the wall. If printers don’t reinvest and keep driving the business forward, what chance have they got of trending upward? Waiting for the rest to fall over or for an upturn in the economy are high-risk strategies.

In the past six months most of the larger groups have consolidated and / or relocated manufacturing sites (PMP, IPMG, Geon, Blue Star and Colorpak to name a few). Many businesses have made acquisitions, resulting in the sale or installation of major equipment. These are from businesses that see staying put just won’t cut it.

These action takers came to their decision through reflecting on where they were, deciding where they want to be and then making the best call as to what to do and implementing it. The actions may not have pleased everyone, but at least they made the call and followed through on it.

Ascent Partners can help printers by providing realistic information about the state of their businesses through appraisals. These are based on having sold over 25 print-related businesses and having worked with owners of printing businesses. This appraisal provides what the business is worth and the rationale behind that value. It can also include the identification of the businesses’ strengths and weaknesses, and where the opportunities and threats lie. Business plans are often developed as a result of the appraisal.

Of course the appraisal can also lead to the conclusion that selling is the best, most realistic option to maximise returns for the owner. Or it may provide that acquisition, or changing the way the business operates, is the best option.

Alternatively business owners need to make those calls themselves by assessing where they are now and making that big business decision call. Then they need to actually action that call and implement it.

Richard Rasmussen and Ascent Partners looks forward to again serving the industry in 2012 with its business appraisal, business sales and consultancy services. Every month its Market Watch Bulletin will be released on a free subscription basis (next issue due out Friday of this week).

More details are available on our web site at www.ascentpartners.com.au.