Are you ready to tough it out?
The first quarter of 2008 is already completed and many of us will by now have a pretty good idea how the year is shaping up.
Hopefully you’ll be one of the majority who are faring better than many predicted. But I know there are some who are finding life a lot tougher. Just how tough is revealed by record administration and insolvency figures.
We have seen huge increases in activity on both the company sales front, where owners have had enough and want to bank some profit, and on our interim management side as companies ask for help in facing the new challenges. A fresh pair of eyes and a commercial, dispassionate approach to the same problem can make a big difference!
Even so, there are a large number of management teams and companies out there who believe that the time is now right to look to acquire their own business or others. Lower valuations, holding companies or shareholders keen for cash, and yes, even some banks still willing to lend, make fairly compelling reasons to consider this.
Also, in tough times, growth by acquisition can be far easier and manageable than organic growth.
So, what for the remainder of the year? Focus on activity, quantity and quality, understand and study your numbers and the trends – they never lie. Most importantly, review and challenge your business model to make sure that it is profitable and sustainable.
If you do all of this, 2008 might be tough but you will survive it... and you will make money!
April 2008