How to Finish the Year Strong

What a year…. And there might still be a twist to come.

With over 2 billion people in more than 50 countries heading to the polls, 2024 has been hailed as democracy’s biggest test. South Africa, too, finds itself at an historical crossroads, with a Government of National Unity (GNU) marking the first time the ruling party has lost its majority since 1994.

But while the political landscape shifts, entrepreneurs have reasons to feel optimistic. The GNU seems to have some broad-based buy-in, and there appears to be coordinated efforts around critical issues such as the ports and crime. We also expect at least two interest rate cuts over the next 6 months, inflation is cooling, we are seeing growth forecasts being increased marginally and there is anticipation that the changes in the Pension fund industry – the Two-Pot system – will provide a short-term boost for the consumer economy.

As we await the US elections in November, businesses must stay focused, disciplined, and ready to seize the opportunities these changes bring but how do they ensure they stay on track?

High-performance teams are disciplined and constantly measure their progress against quarterly and annual Key Performance Indicators (KPIs). In business, it’s not just about getting through the year but ensuring that your strategies align with your goals at every turn. This discipline helps to navigate the unpredictable environment, allowing businesses to stay resilient in the face of uncertainty.

You can plan as much as you like, but ultimately, the proof will be in the implementation and execution of said plans. As we move through the final quarter of 2024, take the time to evaluate:

· Is your business strategy aligned with your financial strategy?

· Do you have the cash flow to execute your business plans effectively?

· Will improved borrowing rates make it easier for you to act on corporate opportunities or expansions?

These are crucial questions, especially in an environment where the risk landscape may be easing. If conditions are more favourable, now may be the time to consider more aggressive strategies for capturing market share—or even planning your exit.

As the risk environment begins to ease, now could be an ideal time to start thinking about exit planning. Whether you’re looking to sell, merge, or simply future-proof your business, the value you add today will shape your options tomorrow. Don’t wait until you want to exit to start planning your exit.

In fact, a Fractional CFO can add significant value in these discussions, providing an external perspective on financial and operational strategies. Their expertise in areas like cash flow management, risk mitigation, and exit planning can be instrumental in helping you realise the full potential of your business when the time comes to transition.

Moreover, now is also the perfect time to build stronger teams, foster collaboration, and boost morale. Consider bringing in multi-disciplinary teams to conduct a rigorous SWOT analysis for your business. This approach promotes diverse thinking and helps prevent bias from creeping into strategic decision-making.

Just as the Springboks didn’t rest on their laurels after winning the Rugby World Cup twice in a row, high-performance businesses should remain proactive in seeking growth and staying competitive. Even after achieving success, the goal should always be to improve and remain competitive in the marketplace.

While it may be tempting to wind down as the year draws to a close, high-performance teams know that success lies in the details. Whether through exit planning or building on your current momentum, continuously measure your performance and ensure that you have the resources—both human and financial—aligned with your business goals.

Rowan de Klerk is the founder and CEO of The CFO Centre South Africa which is part of a Global Financial Leadership Practice. Since its establishment in 2010, the company has grown to become the market leader for outsourced CFOs and Financial Manager Services in South Africa and globally, represented in 18 countries.

Rowan is a seasoned CEO and CFO with a strong commercial and strategic background. With over 35 years of experience working with both large corporations and mid-sized entrepreneurial businesses, he is a results-driven intuitive business leader with a passion for building and scaling businesses.