Nearly all small and mid-size business owners and CEOs face the intimidating task of controlling the recovery of an extremely distressed or dying business. That is a period characterized by hard business conditions, low sales, low morale, low cash, low market talk about, and low technology. There are plenty of factors accountable for this near loss of life experience, including the ones that are self-inflicted such as a major project failing, insufficient information to control the business or incompetent management, poor sales management, or poor financial controls. These are termed internal pushes generally. While the ones that aren’t self-inflicted like government regulations, financial recessions, low-priced competition or natural disasters are termed external forces.
You must first identify the true problem(s) and realize there are conditions that need handling with a higher sense of urgency. You need to get committed to making the needed changes and seeking the help you will need from a practiced advisor that may help you with the many extremely tough decisions that you’ll face.
- Internal controls and reporting requirements for a bank’s agency businesses
- 16 months ago from Olympia, WA
- Accounting and Finance applicants must also complete the Terry Accounting Exam
- International Business Strategy
Strategy – Look carefully at your business strategy to make sure your business is relevant, focused, and managed tightly. People – Are the right people running the business? Will be the right people in the right places? Are employees focused on organizational success? Are employees properly incentivized to talk about in the ongoing success of the company?
Customers – Are customers satisfied? Do they know, like, and trust your brand? Is the business focused on profitable customers versus unprofitable and difficult customers? Are you targeting the right customers? Product – Are you offering high quality, innovative products, and services? Can the business better utilize technology to produce better products, keep your charges down, and improve competitive advantages?
Process – Is the company performance-driven and goal-oriented? Are there processes and procedures in writing to allow the business to improve? Finance – Are cash flows sufficient to sustain ongoing functions and commitments? Does this business have excessive debt and why is there excessive debt? Are gross prices and margins proper to improve earnings?
Do you know your break-even point? Is your sales team effective with strong sales management? Realizing your position is a critical turnaround strategy; without everything other things are just frantic goes that will produce little results. Investors, management, the bank, and employees all need to know what the company’s future plans are.