***Advertisement: Ascent Partners 18 August 2010***
Ben Cousins retired from football (Aussie Rules) today, having achieved a fantastic career, although chequered with his highly publicised drug addiction. He made the call by saying, “the time was right”, he was still able to play good competitive football, and assist his teammates. The parallels to print proprietors, approaching their retirement are obvious, writes Richard Rasmussen.
In announcing his retirement, Cousins said he still had passion for the contest, and gave it his all in preparation for match day. But he couldn’t guarantee he could that again in 2011 in the modern game and be a good team contributor. He wanted to get out when he playing good footy and being a positive part of the team
Many print proprietors are well and truly over printing, and unlike Cousins, are unable to make that call. They know it will happen one day, but not just now. They have lost the passion, some many years ago. For them they should consider:
• A way to get out (or find a way to rekindle the passion)
• What affect their lack of passion is having on their business - they’re effectively dragging down their team mates (i.e. their staff) to their level. Again, time to get out, or rekindle the passion
What Cousins did today, he did on his terms (although it could be argued that the writing was on the wall that the trigger would be pulled on him by the club at the end of the season anyway). Exiting on your own terms is clearly the preferred option. He knew this day would come, but he chose the day.
Pushing the football analogy a step further, Cousins knew that the game had changed, and that he may not be able to keep up with those changes, and be competitive. He didn’t want to be a hindrance to the team. He may be able to for another year, but that was a risk he was not willing to take. So how many of our industry’s proprietors have been able to keep up with the modern print game changes? How many are hindering the team? Just like AFL football, the last 10 years has seen massive changes, and if you’re running a 2000 style print operation, chances are you’re not overly competitive, and that things will not improve
Many printers are wondering how to exit. Fortunately, for most they will not be delisted (unless they are forced into administration / liquidation). What they do need to consider very carefully is although the exit now may not be ideally financially attractive, what will it be like in 12 months' time? If they continue to do the same thing, and the market continues to change around them, will they actually be worse off holding off for another year or two?
My advice is to do what Cousins did today – take a realistic approach of where you are now, perhaps with input from external advisors (as he likely did), and make a call – If it’s “opt out”, fine, but if it’s “trade on”, ensure you have a realistic plan to keep up with the modern game.
Industry specialists, Ascent Partners can help plan your exit. Call Richard Rasmussen on 0402 021 101 (and good luck Benny!)
