There are a number of reasons why a business finds itself with declining profits, negative cash flow, shrinking customer base and in a downward spiral. Some of these reasons may include external factors that you have no control over, like a large increase in competition, sudden illness, legal challenges, natural disasters or unfavorable government policies to name only a few. Take it from someone that have failed many times in business - it does not take much to be in this position.
Sometimes you have to go through the dark side of a tunnel before you can see the light on the other end. Almost every large and successful company had a near death experience before they become very successful. There is always hope.
You just need to make sure that it is not false hope. To get certainty about your business you need to take a very hard look at reality and make a decision based on reality and not emotions. This is very difficult for us as business owners because we put everything in, from our own personal funds to our time, health and relationships we sometimes sacrifice.
But you have to make a decision before you move on. Know that it is going to take handwork, commitment and a new way of doing things. You will probably experience even more stress as you work through to recovery. So, you need to be sure that turning around the business and going through all the hassle will be worth it.
To fix and turnaround your business follow the 10 Rules To Successful Business Turnarounds and use them as basic guiding principles for. Here are the rules for a successful small business turnaround. Read also the related article: 7 Proven Business Turnaround Strategy Steps, to help you in your decisions and planning, and don't forget to go to our Free Resource page.
Rules For A Successful Small Business Turnaround
A Viable Business – You need a business that has the potential for future growth, development and expansion. Is the product or service near the end of its life cycle? For example, is the business still in the “typewriter” market, how viable or competitive is your product in the market?
Adequate Financing – It’s critical that you are able to generate sufficient cash to survive in the short-term. Any business on the recovery path needs time. Success don’t happen overnight. Earlier intervention can lead to a much better outcome for the business and provides your business with the best options, so if you have any doubts, please contact us today.
Sufficient Analysis – Before you can decide if the business can be rescued and turnaround, you have to look at the ‘whole picture’. Sufficient analysis must be done to ensure that the correct options are selected for the turnaround. The outcome of the analysis will determine your course of action. By having a clear picture of the particular problems, you will be better prepared to cope with and solve the problems.
Motivation – This is a big one. You must be motivated, have the passion for success and will to do whatever it takes to achieve your goals. In many cases the owner have lost interest, desire and drive due to the long period of financial pressure
Different Actions – Recognize that getting different results requires a different course of action. If you simply keep doing the same things, you’ll get the same results. To expect anything different without changing the way you operate is insanity.
Commitment – Commit to your new way of operating. It’s easy to make plans to change but it’s another thing to actually carry out those plans. Success is a result of action based on planning. It’s quite obvious that things need to change, but the questions is do you ‘have to’ change?
Team Support – Support from all key team members is necessary. Create a shared commitment to action between employees and owner/partners. When a business is in crisis mode the owner and staff needs to be in harmony and in step with the needs of the business. Everybody should help play his/her part in saving the business, but this won’t help if owner doesn’t lead by example.
Focus on Profits and Cash flow – Not Revenue – ‘If only someone had told me this before! ‘Millions of others, including me, have followed the wrong advice from so-called experts, and it has cost us dearly. Here is The World's Fastest Way To Increase Business Profitability. Every time I hear things like “10 X your business or double your sales”, I get burning feeling in my stomach because I know for the majority of businesses it will mean sure death. I have lost a few of the 40 companies that I have owned due to this old traditional formula. I had to learn the hard way.
We think that to make more money we have to increase sales, get more customers or build a bigger business. Sure it is good to grow and you have to, but make sure you have all the small but very important facts. – If not, it may cost you everything you work so hard for, even your marriage, like mine.
“This age-old formula turns great businesses into cash-eating monsters, trapping you in a day-to-day, check-to-check struggle to survive”
- Mike Michalowicz -
Know Your Numbers – One of the most important business lessons I have learned over 30 years, and that made the biggest contribution to business success was from Steven Walker, (CA) who taught me that all the information you need to make the right decisions regarding your business can be found in your numbers. It will provide you with financial anticipation and foresight to make the right daily decisions.
Want to know where to spend your advertising money, where is the most business coming from, what is your most valuable products and customers? Where is significant potential for growth and profitability? Listen to your numbers, they will guide you. Without these numbers you will not be able to make accurate daily decisions.
Determine Outcome and Goals – This is the hardest part and that’s to make the decision to become responsible for your own future. As long as you know where you’re going, it’s easy to get there. Set some goals for your business to have clarity where you’re going and why are you doing what you’re doing.
It’s important to measure your progress from where you start now, not against how far you have to go. Remember! Your past does not determine your future; only what you do now determine your future. Each action or strategy you implement or make happen, boosts your profits and growth. By comparing your progress with the point at which you started out, will be encouraging continuing. Goals are achieved step by step and each step needs to be validated – otherwise the goal may seem far away, and it may feel you are making little progress, when really you are.
Earlier intervention can lead to a much better outcome for the business and provides your business with the best options. If you have any doubts, please contact us for a free strategy sessions today. "free crisis strategy sessions"
During "The Strategy Call", there's no sales pitch or attempt to sell you anything, ever. This call is about helping you, to talk about your unique business, and to brainstorming ideas and strategies to help you increase your sales and profit immediately. The First Solution Is Always Free, Just To Demonstrate That I Can Help You, By Actually Helping You For Free
If you would like the best immediate solution for your business you can go to The 40-Day Business Turnaround Program will take your business from a "Breakdown & chaos to a Breakthrough & control" in 40 days or less. Stop the urgent pressing cash flow problems that's forcing you into making bad decisions, and forcing you into digging yourself into a deeper financial hole. Let us help you transform your cash-demanding profit-seeking business back in to a highly profitable cash-flow rich business
I really wish you the best of luck and hope you will be blessed in the task ahead. Stay strong.
PS: If your business is currently under Financial distress and need to stop urgent, pressing cash flow issues. Then there is no time to waste, little or no margin for error, and few second chances. Take action and book a No-obligation, 45-minute Strategy Call.
There's no sales pitch or attempt to sell you anything. This call is about helping you to identify overlooked options and opportunities that can increase your sales, profit, and cash flow immediately. What do have to lose?