|| In Business - What you need to know
How do you turn your business from distressed into to thriving? In recent times many good businesses have found themselves with a weak balance sheet, trying to recover and reposition.
1. Crisis stabilisation
Take control. Don't get worked up and let things slip out of your hands. Address weakening situations and learn to understand where your crisis has evolved from. Develop a recovery plan and identify goals to mend the overall problem.
Ensure you have the right people in the right places at the right time. If people need to re-prove their right to be in those positions make sure it gets done.
3. Stakeholder communication
Communication is the key to all businesses, both internally and externally. Keep stakeholders in the loop at all times. You do not want them finding out information second or third hand. Direct communication from your business will increase credibility.
4. Generate cash
Let's face it being in business means having to make tough decisions. Take a strategic direction and consider downsizing and selling off assets to generate more cash.
5. Organisational change
Revise existing employment terms and conditions and make structural changes to create new terms that will assist your business to recover. Ensure the new direction is understood and executed by all.
6. Critical process improvement
Take a critical eye to the process of your business and identify opportunities to reduce costs, improve practices, increase efficiencies and grow revenues.
7. Financial restructuring
Work out your liabilities and restructure financial commitments to a level that the business can meet. This may mean raising capital or finding longer-term bridging sources of funding until the business can return to predictable profitability and positive cash flow.