Page 12 - Print 21 Magazine Sep-Oct 2020

Leading Article
It will set you free
I’m sometimes accused, along with others in the media, of only peddling bad news. We’re seen as talking down the situation, emphasising the worst
aspects of the economy and the prospects of recovery. “Why don’t you report the good news?” we’re asked. “Why always the doom and gloom?” And fair enough!
But we’re in the middle of a global
crisis with people falling sick and dying in hundreds of thousands, while countless others lose their livelihoods as the economy shuts down. Now is a time to be serious about the prospects of your life and business, a time when common sense is at a premium, and grit and determination are only useful if they’re used for the best possible outcome.
I was forcibly reminded of this when I logged into Richard Rasmussen’s Ascent Partners webinar with the sobering title
of Regroup, Sell or Close? I’ve known Richard for a long time, ever since he was marketing manager for Heidelberg in the 1990s. He’s a shrewd, knowledgeable, industry professional who consults with print companies, appraises businesses, and runs an online bulletin as well as a surplus equipment disposal service.
He came together with two others for the webinar, both seasoned industry professionals: Wade Oldham, national industry finance specialist and Andrew Barnden, an insolvency practitioner with Rodgers Reidy.
Hard times require hard truths. A pandemic-induced recession, that may turn out to be another Great Depression, is no place for wishful thinking. No matter how optimistic you are, no matter that your glass is always half full, now’s the time for a reality check, to grasp the truth of
your situation.
Together they surveyed some of the available options for printers hit hard by the crisis. As we all know, the current state of the printing market is dire; the majority of printers report a revenue drop of in excess of 30 per cent, catalogues were down 70
per cent in April, 55 per cent in May; paper imports dropped 30 per cent in April, falling off a cliff in May.
In this situation Regroup, Sell or Close pretty much covers the options.
Regroup means right-sizing your business, changing to meet market conditions. It
may mean reducing your costs, employee numbers and activities. It could involve major structural change, such as buying another business to expand your offering, getting out of manufacturing altogether, ie
selling the presses to become a print broker for your clients, collaborating with other businesses, or merging with another printer.
However, if you can’t right-size to keep afloat and you’ve run out of puff to face a restructure or a merger, you can always Sell, get out of the business entirely. Selling your business in the middle of a recession is a tough call, but as Rasmussen points out, if this becomes your best option, there is only one right time to sell – now.
Finally, for those who need to inject money into the business just to keep it afloat against the best prospect of hanging in until things return to normal, it becomes imperative to Close. This is tough. It may even mean pulling down the roller door and walking away from a life’s work, but remember, every day you put off biting the bullet may cost you further in financial and emotional pain.
The guys laid out the options in stark terms. They’re professionals in their
fields and their advice can help you get an optimum result. The reality is that once you’ve made that hard decision, acted on your best available option, you’ll feel better.
Facing the truth now, as always, will set you free. 21
Patrick Howard
— Editor-at-large
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12 Print21 SEPTEMBER/OCTOBER 2020
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