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.