Year-End Maximization
As we enter the fourth quarter it is important to focus on finishing this year well. While many
urgent items may remain on the ever increasing to-do list, in the last quarter we want to be sure
to focus on the execution of those items which will maximize profitability. As you consider yearend, here’s a list of topics that we think you might find useful to have a strong last quarter.
1. Maximize Customer Opportunities
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Determine who your best customers are and touch base with them. Think
strategically about how you might interact with them over the coming holiday season.
This is an excellent time to express appreciation for their business while seeking
constructive input.
Worry about customers who have payment issues. It is common practice to run up
accounts prior to year end and then to file bankruptcy. Caution in this area will save a
lot of grief.
Make sure you have adequate resources to respond to customers in the year end.
o Holiday’s can cause resources to be light in a busy season. By beginning
early to plan for resources the business avoids the disappointment of
scheduling someone whey they planned for a holiday.
o Inventories are another key factor. Holiday sales activity can require pricing
and supply decisions. Where possible make the decision point analysis in
advance. Decisions include additional orders, order reductions (both of these
are limited time frame problems), price adjustments (i.e. sales) based upon
sales activities, and advertising strategies. By planning these in advance,
profitability can be maximized.
2. Effective Holiday Preparation
As we look ahead to Thanksgiving and Christmas in the last quarter, we want to anticipate
the business that will occur around these holidays.
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Ensure that clients will have what they need as they also anticipate year-end.
Determine staffing needs for the holiday season.
o Be certain that staff is able to utilize their remaining vacation time while also
allowing enough staff to meet clients’ needs.
o Determine and communicate the holiday staff schedule now so that
employees can prepare.
o Maximize staff resources productively by utilizing any slower time around the
holidays to tackle the To-do list.
Schedule year-end performance reviews with employees. This will assist in
determining employee bonuses. Bonuses should connect to the performance of the
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business. These decisions need to be made in October before we lose objectivity in
the upcoming holidays.
3. Year-End Expenses
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Recognizing seasonality, review the budget to ensure that it accurately reflects what
is anticipated in the last quarter. Review projected cash flow and profitability.
Begin looking at year-end bonuses to determine how much this will be and what
preparation should be done to determine these.
Anticipate year-end expenses such as holiday parties and determine how much the
firm wants to spend. Communicate with employees now in order to monitor
expectations.
4. Marketing for Q1 2016
Many businesses know how the end of the year will shape up by the beginning of the last
quarter. After you are confident that all that needs to be completed in 2015 is on target, we
recommend a focus on marketing for the first quarter of 2016. For some companies
marketing requires a longer-term focus.
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Make sure longer term proposals are refreshed.
Make sure relationships are refreshed.
Consider seasonality: Post Christmas and New Year identify the opportunities the
company can or should target in winter.
Review Association memberships and sponsorships: Consider return on invested
effort and determine if more or less involvement and financial investment is
warranted.
Year End Maximization incorporates the ‘Sprint to the Finish’ of the current year, while keeping
an eye on maintaining momentum going into Q1 of the New Year.
This article was revised by Mark Thorne, Managing Director of our New Jersey Office. The
article was originally written by Phil Clements, CEO of Cathedral Consulting Group, LLC and a
Managing Director in the New York Office and Sharon Nolt, former Senior Associate in the New
York Office.
For more information, please visit Cathedral Consulting Group LLC online at
www.cathedralconsulting.com or contact us at info@cathedralconsulting.com.
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