If you're like most business owners, you've sacrificed a lot for your company: worked long hours, borrowed money, and missed family events. Until recently, the business did OK and provided you a nice income.
Today, things have changed. Our economy is in decline, expenses are rising, and you find yourself between a rock and a hard place. You certainly didn't plan for this to happen, but your business is struggling. . . and the pressure is mounting.
In order to find the answer, you have a few things to consider:
• How far have you come to acceptance that a problem exists?
• How quickly do you have financial information?
• Do you have accurate job costing / internal controls?
• What is the Size of the Entity?
• Where is your business in terms of growth?
• What is the Life Cycle of your product offering?
• What’s the degree of technology utilized?
• What’s the value added vs. commodity?
• What is your Cash Flow from operations?
• What’s the status of the industry as a whole?
• What’s the Debt – Equity Ratio?
• What degree of internal sophistication (CPA, CFO or bookkeeper) do you possess?
• What does your infrastructure (ERP / CRM) look like?
• What’s the percentage of new clients / customer in the past 24 months?
• Are you proactive or is the bank / lender / PE requiring you get help?
• What is your turnover in employees – too much or too little?
• What’s the percentage of revenue spent on marketing?
• What’s the percentage of revenue spent on training?
• Do you have a business plan? A failure to plan is a plan to fail.
• What is the number of formal board meetings per year?
After answering these questions, you should consider a guided turnaround. A guided turnaround works well for business owners who realize that trying something different is better than continuing on the present course and risking the life of their business.
Before reaching out for professional help, you naturally have more questions, such as:
• 'What exactly is involved in a turnaround?'
• ‘How will this affect my reputation in the community?'
• 'Is there a proven strategy I can rely on?'
You can rehabilitate almost any business by making it smaller and controlling the cash, while you develop a turnaround plan your creditors will accept.
A guide to accomplish this is the Turnaround Roadmap. It's based on a turnaround procedure our turnaround specialist developed during 30 years of helping clients revitalize their companies.
The Turnaround Roadmap is particularly effective for business owners who have the following characteristics:
• A strong work ethic and the will to succeed;
• Maturity to know their company needs something other than more money to heal itself and stay healthy; and
• Manage a business with annual revenue greater than $2 Million.
Our Turnaround Services
For business owners who recognize the value of an on-site turnaround specialist, we provide immediate peace of mind with a 30-year track record of success.
Our turnaround specialist will immediately come to your business and help you revive your company. You can breathe easy while we do most of the heavy lifting, meet with your bankers and creditors, and guide you through the turnaround of your company.
How Does This Work?
When you hire us as your turnaround consultant, we will develop a custom turnaround plan for your business and help you implement it.
• First, we will stabilize your cash flow so we can calm things down with your creditors.
• Second, we will conduct a series of tests to diagnose your business problems. Based on the results, we'll recommend solutions, prepare a cash forecast, and develop a written turnaround plan for your company.
• Third, we will prepare a series of action items and help you implement them as you guide the turnaround to a successful conclusion.
Most consulting engagements take several months. In difficult cases, additional time may be required.
Experience Matters. If you were looking for a medical specialist to treat a life-threatening condition, you'd naturally want one who knows what he's doing. We've been doing turnarounds since 1977. A long list of clients have successfully turned their companies around and regained their profitability. It's a reasonable bet you can, too.
Are We The Right Specialist For You? The answer depends on several factors. We produce the best results for clients who have the will to fix their companies and who can adapt to modest change. However, there isn't much we can do if you believe that borrowing more money will heal an unprofitable business.
What Does This Cost? As you would expect, the fee is determined by the severity of the problem. We do not charge by the hour. Instead, you get our services for a fixed fee. This way, you know before we begin exactly what it will cost to turn your company around, and there will be no surprises. Our Part Two of this blog will specifically quantify the cost of a turnaround.