The Turnaround Ten
The Turnaround Ten
Look out for these 10 warning signs and get your business on track
- Inability to pay vendors – building a “creditor wall of silence”
- Losses and decrease in profitability
- No access to lending
- Poor accounting maintenance
- Inability to predict revenue
- Fixed costs are too high
- Not actively engaged with customers
- Lack of direction and communication of goals- leaving employees “in the dark” everyone is stressed and employee morale plummets
- No cash flow or budget projections
- Significant new competitors in your market
10 Ways to Keep your Struggling Business from Failing
- Keep your eyes on the cash - institute and maintain a 13 week cash flow plan
- Engage secured creditor(s) and seek appropriate deferment to correct or stay within covenant
- Renegotiate all rent/lease contracts
- Communicate with vendors and key suppliers
- Engage your business plan with employees
- Liquidate excess/old inventory
- Embrace alternative or bridge financing with a plan for its repayment
- Assess and transition unprofitable clients/contracts
- Defer debt payment plans that are in excess of operating cash flow
- Take prompt action
As with any business recovery, timing is everything. Paying attention to an early warning could mean the difference between saving a business or it being forced into liquidation. RJ Reuter can objectively assess the situation and put plans in place for the best course of action.
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