Time for the final sprint and looking ahead

Written by: Andre Scheirlinck

Now that September is behind us and autumn has made its appearance, we are entering the fourth and already final quarter of 2024. This is the time when, traditionally on the business front, many entrepreneurs start 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, and we can put this knowledge to good use when making the plans and budgets for 2025. With a good analysis, obviously comes good and quickly available information from inside and outside the company, so make sure the company dashboard is set up optimally.

Any deferred investments due to sharply increased interest costs, for example, can be reconsidered, as central banks are now lowering interest rates again. With several sectors under pressure due to lower sales, but at the same time there are plenty of challenges on, for example, staff shortages, energy transition and ESG criteria, this is a welcome relief on capital costs. Also in business acquisitions, the level of interest rates plays an important role in the valuation and financing of a company.

Another important development is the increasing focus on digitization and automation. Companies that can move quickly by implementing data-driven decision-making have built a clear competitive advantage. This allows them to react more quickly to market developments and economic fluctuations. These trends have also influenced the acquisition market, with companies with strong digital infrastructure and forward-looking technologies increasingly seen as attractive acquisition candidates. Companies that embrace these technological tools are better positioned to remain agile 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, material procurement and logistics? Can these costs still be (partially) passed on to customers from a competitive standpoint? 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 the real added value is being realized, but also where the risks are. How can you respond further to increase added value and mitigate 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 into refinancing?

Answering these questions requires a keen and complete understanding of the company’s current situation. Not always this is well present or the entrepreneur and his management team lack the time to give this the proper attention and effort. Not for nothing is the last quarter always hectic, but therefore so beautiful! Yet in the long run this is crucial to keep the company agile and resilient.

So while we are in the final sprint to successfully finish this year, this quarter is also the time to look ahead and shape next year’s strategy. To keep the company agile and resilient in the long run for undoubtedly new opportunities and challenges!

This article was originally published in Zaanbusiness magazine October 2024.