Business turnaround strategies

Each business is different, so each business will require an individual approach, however the strategies usually include:

• Identify the problems
  Analyzing all your business information: management accounts, sales, finance agreements, internal controls, customer services and try and identify problems and causes.
• Planning
  Once the problems and causes have been identified they will work out what needs to change. This will be broken down into actions with timeframes and the expected financial results.
• Talking to employees
  It is important to keep employees informed of what is happening and the plans that are in place to aid recover. If people understand what is going on and what will happen and why they are much more likely to support it, if not then people will worry, rumors will start and morale with go down.
• Communication strategy for creditors, suppliers, customers and bank
  It is best to communicate face to face with your creditors, suppliers, customers and bank to discuss the plan and actions in place. The strategy may also include requesting support from these groups and renegotiate prepayments with them.
• Cash management
  This may involve renegotiation of payment terms with suppliers, the selling off of assets or selling and leasing back, moving to smaller business premises or sub letting some of your space to another business, invoice finance, redundancies, cutting back on overheads and expenses.
• Introduction of new systems
  New systems, processes and procedures may be set up to ensure your business is running effectively, efficiently and responsibly.
• Review of the results
  Progress will be reviewed on an ongoing basis and if things aren’t working changes will be made.