Avoid panic, fear, and uncertainty when your company is in distress. It’s natural to feel these emotions but you’ll need to be objective, clinical, methodical, and confident to turn the business around.
Often, the answers are right in front of you, but it takes an independent, experienced, and even intuitive view to find the solutions needed for a sustainable business turnaround.
These 7 steps illustrate the typical process required to revitalise a business where you look at what is in front of you, interpret what you see and then lift your head to envisage where you need to be.
- Uncover true position and understand root causes.
- Communicate to create understanding, commitment, and support.
- Design a realistic turnaround which resonates with creditors.
- Take steps to stabilise the company’s finances, maintain a positive cash flow and find the profitable core.
- Focus on profit and cashflow, not revenue.
- Increase sales without substantial marketing investment.
- Activate the business turnaround strategy steps with military precision and consistency.
These 7 steps seem simple enough, but each has sub-plots and dynamics of its own.
“One of the most important aspects of a business turnaround is not to waste time debating why a logical and needed action cannot happen. When you understand the consequences of not implementing a certain action, one is soon galvanised into finding ways to make it happen. This positive approach creates a ‘can do’ and revitalised culture which inspires the turnover process and augurs well for the future of the company,” says Mubesko Africa’s Nico de Kock.
Nico de Kock
Managing Director
Mubesko Africa
nico@mubesko.co.za
mubesko.co.za