***Ascent Partners: What's your game plan for Q4 and beyond?***
We’re now into the red time zone of Q3 FY 11 and many will find they are many goals behind compared to last year, and that this year will mark another loss. Others will enter the final quarter full of confidence – sales are good, they are making good money and their game plan is working.
Either way the end of the third quarter is a great time for reflection – about what went right and what went wrong in the last three quarters. What needs to change to make the final quarter’s performance better? What changes can, and will, be made to the game plan?
One of the most important elements of the last question is the “will” component. Many see the writing on the wall, but don’t make the changes. They can make the changes, but few follow them through with action.
This is not surprising. We are all creatures of habit. It’s how you’ve done business for the last 20 years –It’s “how we roll around here”.
But using the football analogy, the game has changed, and it keeps changing. The game evolves, and better business models are being developed all the time.
So inaction is not an option. Here are some things to do at the end of Q3:
• Compare end of Q3 results to previous years - sales, GP, profitability, staff numbers and top 10 client mix.
• Do some forecasting to how you will finish up with these.
• Ask yourself, “is this an adequate return on your time and your capital investments?”
• Look at the trends
That should be a very simple exercise.
The vital question that follows is “what you are going to do with knowledge of that data?”. For those where the trends are bad, obviously there is an urgent need to ask “what can you do to turn things around?”
It’s at that point that most struggle to come up with the game plan, many because they lack to real objectivity in analysing the data and then deciding what to do about it.
That’s why it’s a great idea to get someone outside the business to guide you. From a financial perspective, that may be your accountant, from a business planning perspective, perhaps someone in the industry who knows what’s happening in the industry, and can help develop the game plan, that can deliver the results you require.
It may well be that the resultant game plan is about exiting the industry or about selling the business. That may result in the very best financial outcome. It is here that Ascent Partners can help:
• Appraising the business
• Helping develop a “game plan” to exit or improve the business
• Helping to market / and or sell the business
Alternatively, do the basic appraisal of the business’s FY 11 performance, as detailed above, yourself. And then decide on a game plan for the final Quarter of FY 11 and beyond. It’s a great time to reflect and plan, and for many a great time to develop a new game plan.
For further information on our appraisal and new business sales services, ring Richard Rasmussen on 0402 021 101 or visit our web site at www.ascentpartners.com.au
