Written by: Andre Scheirlinck
Now that September is behind us and autumn has made its appearance, we are entering the fourth and already last quarter of 2024. This is traditionally the time when many entrepreneurs begin the final sprint to further sharpen this year’s goals. It is also the time to start thinking about the year ahead. The past few quarters have once again brought us new insights, which can now be used to develop plans and budgets for 2025. With a good analysis, of course, comes good and quickly available information from inside and outside the company, so make sure the company dashboard is optimally set up.
Any deferred investments due to sharply increased interest costs, for example, can be reconsidered, as central banks are now lowering interest rates again. While several sectors are under pressure from lower sales, challenges such as staff shortages, the energy transition and ESG criteria remain prevalent. This makesthe relief on capital expenses a welcome development. Also, in business acquisitions, interest rates levels play an important role in valuation and financing of a company.
Another important development is the increasing focus on digitization and automation. Companies that implement data-driven decision-making a clear competitive advantage. This enables them to react more quickly to market developments and economic fluctuations. These trends have also influenced the acquisition market, with companies that have strong digital infrastructure and forward-looking technologies increasingly seen as attractive acquisition candidates. Companies that embrace these technological tools are better positioned to remain flexible and increase their business value.
Now that the fourth quarter has started, it is important to look at both short-term and long-term planning with these developments in mind. What price increases can we still expect in costs such as personnel, materialsand logistics? Can these costs still be (partially) passed on to customers while remaining competitive? Are there other creative solutions to protect margins? What can be done to make operations more efficient? Not only in terms of processes, but also in terms of capital invested. Consider sale & lease back, reducing inventory and optimizing working capital to free up liquidity.
From the business dashboard, it is easy to find out where real added value is being realized, but also where the risks are present. How can you further capitalize on increasing added value and mitigating risks. Are there new sales channels or products that offer long-term opportunities? And what about the financing of your business- should you perhaps look at refinancing?
Answering these questions requires a keen and complete understanding of the company’s current situation. Entrepreneurs and their management teams often lack the time to give the attention it deverses, making the final quarter hectic but also critical Yet in the long run, this is crucial to keep the business agile and resilient.
So, while we sprint toward the year’s end, this quarter is also the time to look ahead and shape the strategy for next year, ensuring your company is prepared for new challenges and opportunities!
This article was originally published in Zaanbusiness magazine of October 2024.