Late October, November, and early December are commonly used by business owners as a time to assess the past and to plan the future of a particular trucking business. Why is this season and why is the 4th quarter of 2010 in particular so important for business owners? Here are a few reasons:
1) Business Valuations. Business owners often obtain business valuations in the 4th quarter because it influences how a business owner will choose to reinvest in their business in the following year. It also helps a business owner evaluate how the business is progressing in the context of larger business plans. Business valuations also help owners identify areas of the business that need immediate adjustments to protect and enhance long term business value.
2) Numerous legislation changes that will affect how trucking businesses succeed and fail in 2011. Health care, capital gains, and a variety of other new or adjusted laws will undoubtedly require business owners to modify how they have operated in the past. Now, more than ever, trucking business owners are trying to get to the bottom of these issues and how they will affect their ability to successfully manage and eventually sell their greatest financial investment—their trucking business.
3) Holidays. Thanksgiving and Christmas allow business owners to temporarily escape the daily grind of the business and objectively evaluate their priorities in life. When equipped with the facts regarding business value and when surrounded by family, trucking business owners make educated and emotionally intelligent decisions concerning the future of their trucking businesses.
4) Writing the Next Chapter. This is a great time to map out what you want to be in the next chapter of your life. Trucking business owners that seamlessly transition from a successful transportation career to retirement or another business venture diligently plan for it. They ascertain how much cash they need from a business sale well in advance of selling, make the appropriate adjustments to their business when necessary, and educate themselves about the sale process and timing of a sale. This preparation ensures success at the closing table and in the next chapter of life.
The months of October through December serve as an important season of tough decision making for every trucking business owner. The 4th quarter of 2010 will be one of most important seasons of decision making in the foreseeable future. Make sure you have the facts about your business and the issues affecting your business so you can make informed and emotionally intelligent decisions for 2011 and beyond. Contact The Tenney Group for up to date advice on how you can succeed with your trucking business.