It can be a very lonely existence running a business which is steadily heading towards the rocks. Trapped in a vortex of unrelenting gloom, owner/managers find it almost impossible to think and act rationally. Decisions are increasingly made on the hoof and are often inspired by near panic.
At times like this, it is vital that 2 things happen. First, help needs to be brought in from people who have no emotional ties with the business and, secondly, professionals with experience of planning and implementing business turnaround have to be drafted in. This will lift a great deal of the burden from management and enable it to focus clearly on the day-to-day demands of the business.
If a company is already in serious trouble, any major restructuring could well involve its creditors agreeing to whatever plan is envisaged. Again, the presence of outsiders with a well-known reputation for managing a successful business turnaround strategy will lend a great deal of credibility to the process and help gain support from these creditors.
Similarly, the business turnaround specialists might well conclude that some fresh investment in the business is essential either to meet looming cash shortfalls or to enable the purchase of new assets which are capable of reducing costs e.g. by using significantly less energy than existing equipment. Not only will the specialist accountancy team or other type of recovery experts have access to investment funds but their very presence will provide comfort to the investors involved and cement their interest in transacting a deal.
Even in the harshest economic climate, it is amazing how a totally fresh, objective approach to a company’s activities can achieve a successful business turnaround. Armed with the right information and well-honed tools, an experienced team can reduce costs and improve both revenues and margins.
The most important thing is to recognise that you have a problem in the first place and not stick your head in the sand. What are your monthly management figures telling you? Is far too much of your time taken up with talking to the bank and pressing creditors? Would it help if you had an interim manager brought in on a temporary basis while a business recovery plan is worked out and implemented?
Don’t shy away from seeking help from outsiders on the basis that the last thing you need is additional cost. Quite apart from the fact that the very survival of your business could be in jeopardy, you will probably find that, at worst, restructuring and turnaround advice is revenue neutral and, at best, actually improving your bottom line. Just make sure that you people you engage have the right credentials and can provide evidence of past successes.
For more information and specialist advice on viable business turnaround strategies visit http://www.hwfisher.co.uk/business-recovery-and-insolvency/turnaround-services