It may be that you will need to engage external support from a turnaround expert who has experience of turning around his or her own businesses. Read on to learn about the types of things that our turnaround professionals are capable of doing, as well as the various cash management services that we offer.
A turnaround professional can counsel on what is best for your company.
When Does a Business Need a Turnaround Strategy?
If you need help solving sales problems, developing sales improvement plans, or developing a business turnaround strategy, it might be possible that you could use this process to enhance any feature in your organisation with no external support. However, there are some pitfalls and obstacles that will often thwart the best intentions…
If the business is struggling to keep up its long-term financial obligations, in other words, its ability to stay in business, a business turnaround strategy needs to be put into place in order to keep it going. Then, the business turnaround strategy is put into place, monitored, in order to limit the damage from any failures, and ensure that the business undertaking the change does not end up insolvent, throughout the turnaround process. Once a business has been stabilised and its value restored, the next stage is implementing a sustainable growth strategy, aiming at increasing profitability and improving operating efficiency, ensuring that the business has a viable future.
The Difficulties of Admitting the Need for a Turnaround
The earlier that the business enters a turnaround process while it is in a distressed state, the greater the prospects for success, and the better the results in terms of jobs secured and values saved. If you are looking to rescue a small business, a long-term strategy that builds upon the operational and financial gains from the turnaround, and is grounded in the business’s core values, is critical.
Bridge Newland outlines key measures and approaches that you can follow to save your small business. There are four critical rules businesses going through turnarounds or restructurings during a deal-making process should follow, which they have introduced in a range of organisations experiencing pressures in their margins, in order to deliver their plans, quickly tackle poor performance, and get back to generating profits and sustained value. In each business turnaround plan set, most targets revolved around these 3 key elements.
How to Get Set the Process into Motion
Whether you are facing a crisis and you need a business turnaround strategy, or just a way for your entire team to come together and work through problems, this process delivers results. Try to take some time away from your company, ideally with a trusted outside party who has business turnaround experience, to get the big picture. It will assuage your employees’ fears by understanding you recognised that problems were present, and you are actively taking steps to address those issues and turn around the business’s fortunes.
Importantly, each company and situation requires a different approach, but the core steps and strategies for turning around your company are the same. At the end of a successful business turnaround, management teams should take a moment and reflect on the lessons learned throughout the process.
For any company that is under such pressure, applying the process above, in consultation with an experienced turnaround manager, will ensure that not only does the business turn around, it will have a chance for improvement and development in the future.Whether you are in a time of growth or struggle for your business, connecting with and understanding your customers is important. For help tailoring your business to what your consumers actually need, please see the tips below.
Infographic provided by Riveron – accounting advisory professionals