Discover the best strategies, tools and resources you can use right now so you can future proof your business, and be prepared for future challenges in uncertain times that will totally destroy so many others.
If you're prepared for difficult economic times, and have the right tools and strategies, there is no reason to worry about your financial future. History has shown it is possible not only to survive, but also to prosper in these times.
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The Best Strategy To Future Proof Your Business From Possible Financial Crises,
Over the last few months so many business owners have come to me because they are really stressed out, scared and uncertain about their future.... and it is totally understandable. We have seen economic crises before - But this is different and my advice is to treat the situation different like anything before to future proof not just your business but survival.
Things will get back to a normal again, but how long and how big the financial impact is going to be, we don’t know - but ‘prepare yourself for a long ride’ it’s going to be difficult and different over the next few months — how difficult and how long is hard to say.
But don’t hold onto the illusion that it's going to be business as usual and that the Normal quick fix and a band aid strategies will do the trick to save your business, because it will prevent you from performing the changes that’s necessary to future proof your success. These are not normal circumstances and needs a different approach.
The Problem:
We have never seen anything like this before. Not even in the last depression.
This is different in many ways and the best that we can do is only guess. This is not the "normal" down economy or recession. We will probably experience all that as well plus a few other unique situations.
I am afraid to many small business owners treat this as business as usual, and will cost them dearly.
The Solution:
The One thing that will really work best in a situation like this is concept called "Business Turnaround" Instead of being in a state of panic, fear and uncertainty that will paralyze you, and cause you to think in circles, and sometimes unable you to recognize obvious and simple solutions that may be right in front of you. A step by step and easy to follow plan can help to transform the business to achieve sustainable recovery.
Why Use a Turnaround Strategy To
Future Proof Your Business
1.
In most cases where businesses failure seemed certainty, a turnaround strategy can restore confidence, control and future proof your business.
2.
It will design and position your business for maximum growth and profitability and help you build a highly profitable and cash flow rich business that’s needed to survive and prosper in this crises
3.
Many businesses will fail, but they don’t have to, Yes, most businesses can be saved, because most business owners have what it takes for a successful turnaround.
4.
What is missing is the basic series of logical step by step actions that will lead to the survival and prosperity in a crises period.
5.
But one of the key success factors is to take action early, timing is essential and will provide greater opportunity to save the business.
What Is a Business Turnaround ?
Business turnaround is an informal management-led reversal process to prevent a struggling or poorly performing business from insolvency and liquidation by returning it back to profitability, and restructuring debt using an out-of-court debt negotiation process that’s outside the legal framework.
Business turnaround is the processes needed to bring about those changes necessary to solve a business operational, strategic and financial problems that will restore the struggling business to its former financial health and viability.
The process is normally driven by the business owner(s) with the focus on improving management, profitability, cash flow, productivity and revenue. The business turnaround process is normally used in the early stages of business decline, poor performance and financial distress.
Funds are generated internally to insure the business has sufficient cash to see it through the next few months while a business turnaround plan is implemented.
Future Proof Your Business By Discovering The Past
Before you start to turnaround a struggling business, you have to discover what caused the problems you are dealing with in the first place. Once you figure out which parts are working, you can improve them and do much more of those things that work. You will also figure out which parts of your business aren't working so that we can fix them or get rid of them entirely so that they will stop wrecking your business.
The internal analytical examination of the business at this stage is of critical importance. At this point, the owner needs to decide if the business can be rescued and turned around. Look at the ‘whole picture’, Not only the business itself must be considered, but also the owners and stakeholders and the team. How will the way of thinking and interpretation of the problem at hand affect others?
You need to understand the business, what makes it tick, its strengths and weaknesses and where the opportunities are to increase business’s profit. By having a clear picture of the particular problems you will be better prepared to cope with and solve the problems.
Owners, managers, and banks, need to ensure that the business is capable of being turned around, is a viable business and that the core product/service of the business has potential for future growth, expansion and profitability.
While evaluating the business it is important to identify essential and important issues for the business’s survival. You should identify the internal strengths and weaknesses, as well as the business’s external threats and opportunities.
The main concern at this point is to determine whether the business can survive the period that is required to develop and implement the improvement action plan. Any final assessment should be supported by financial analysis that demonstrates the robustness or shortcomings of the business and what the alternative course of action will have on the business.
Things To Consider
While there are many elements to consider at the initial stage, below are lists of prompts that may help and assist when doing an internal audit.
- Does the business have sufficient cash to see it through for the next two-to-three months?
- Does the business have a noticeable variation in sales in different months of the year?
- Has the business established a break-even?
- Does the business have a clear vision/strategy?
- Do you know what business you are in?
- Are the turnovers of the business declining, stagnating or weakening?
- Does the business have a cash flow forecast?
- How well are the accounts receivable managed?
- Are bad debts a problem?
- Does the business have problems paying its current bills?
- As the owner, are you prepared to be part of the solution?
- Determine whether banks and other vested stakeholders will assist.
- Where are the gaps in the business?
- Are their unexploited opportunities within the company?
- Are the problems of the business understood?
- Why are things changing in the business?
Time is of the essence and certain basic steps need to be taken. Sufficient analysis must be done to ensure that the correct options are selected for the improvement. The evaluation of the business at this stage may take a few days for a small business, or up to several weeks for a larger company. The outcome of the analysis will determine your course of action.
For more in depth analysis you will find 120 Self-Diagnostic Questions For Creating a Perfect Strategy
Thanks for reading, I hope you found it valuable and helpful.
PS: So if you want to successfully, survive and succeed through all this - that will totally destroy so many others then subscribe to our free training and tools.
If you would like me to personally help you find the best immediate solution for your business. You can contact us for a free crisis strategy sessions during this "lock-down" … Just go to "free crisis strategy sessions"