There will come a lot of problems during the course of running and maintain a business and some of the problems will only compound over time eventually posing an existential threat to your business. Here a turnaround management consultant or turnaround and restructuring consulting firms can be brought on board to herald a complete turnaround of the business so that a recovery can be made.
The corporate restructuring or turnaround management consultants are professionals with a lot of experience in scripting turnaround stories for businesses. Most of the work profile is about diagnosing problems plaguing the company so that the company stops sinking and makes a comeback to herald an upward trajectory in its entrepreneurial ambitions.
Turning and restructuring consultants can be brought on board to take care of the impending gloom. Different consultants might have different ways to go about things to bring about a change, but most of their strategy can be summed up in 12 simple and easy steps, in no particular order.
1. FIGURE OUT HOW LONG YOU CAN GO ON FOR
Everything comes to an end, while it applies to all things, it has special symbolism when it comes to money and you don’t need a turnaround and restructuring consulting firms to reiterate upon this. Every good thing comes to an end, and money is one of the finer things which will most definitely come to an end if the money is not being worked enough to generate substantial returns. Coming now to corporate terms, working capital or line of cash is very important for running and maintaining the affairs of a business.
By this, the durability of cash flows is hinted at. A business and all its senior most employees need to know about their “out of cash” date. Have the writing on the wall works very well for a business, it gives you a clear picture of how much time remains and what needs to be done in the time that remains.
2. DON’T HESITATE TO ASK FOR PAYMENTS UPFRONT
Go to work on your working capital and make your accounts each day. Look into people who are supposed to pay you and use your powers of persuasion to get your payments on time. Only a healthy cash flow statement is going to keep the problems at bay, and your money is more than oxygen when you’re plagued by problems. Money is the elixir of your business in times of existential crisis and you don’t need a turnaround and restructuring consulting firms to tell you this. Using personal touch to make your clients pay on time, will help you get paid before other clients of the business and your payment will remain safe because you might not be the only one facing a cash crunch.
Offers special discounts for a limited time on accelerated payment if you have to but get paid anyhow, you need to have a healthy cash flow statement to tide over the present circumstances and get yourself out the mess you’re in or delay impending gloom by buying your business time in salvaging all you can while you still can.
Negotiate and initiate the process of buying yourself more time to bring around a turnaround. When times get tough as they sometimes will surely get, you need to negotiate your way out of it and try to bring about a win-win situation. You need to keep your key suppliers, vendors, investors and other important resources satiated by paying them something in lieu of all payments and the rest can be negotiated to be paid later when the business is back to bringing in cash flows of its glory days.
You need to live up to your reputation, but you can’t die in the process. You need to stay alive and that can be done only by buying yourself more time by negotiating yourself out of impending bulk payments that you can’t afford to immediately make. You have to balance your moral obligation to your suppliers with your goal of staying alive.
4. BEAT YOUR RIVALS.
You need to beat your rivals and generate more revenue than them. There is no other way, you need to get in as much revenue in the door as fast as you possibly can so that it reflects positively on your cash flow statements. Remember, money is the oxygen of life and it’s the only way you can make a turnaround.
You can do so by changing your price structure and by increasing shipping and handling charges, you need to draw more revenue for the same product or service that you were doing earlier, and you need your sales team to do it for you, there is a very small room for failure when the stakes are at an all time high, desperate times call for desperate measures. Meet with your sales team 10 times a day, ask them to explore new markets or extensions of the present markets where you are presently offering your products in.
5. BRAINSTORM – GET EVERYONE INVOLVED
You need to get the whole company and the entire team involved to brainstorm together to take care of the current predicament plaguing your business along with the turnaround management consultant on your board. Since corporate restructuring consultants or turnaround and restructuring consulting firms no matter howsoever experience are still alien and external to the company, the internal workforce will know the company more than any expert.
So a consensus needs to be reached after due brainstorming with all indispensable proponents and thought it is said too many cooks spoil the broth, you might be pleasantly surprised at the ideas that come up if you take the time to discuss your current situation with your employees. The people working with the company as employees have a vested interest in the company as an ongoing concern, as the predicament of the company also affects the career paths and plans of the employees, so of them having spent most of their professional lives with the company, having no option to make a change at this stage of their career, hence they would like nothing more but the company to succeed.
6. MOVE. RELOCATE.
Change is the only constant, and sometimes change becomes necessary given the monotonous drudgery of life. So apart from the turnaround management consultants and turnaround and restructuring consulting firms doing all they can with the management to bring around a change, a relocation can help in facilitating the other processes working simultaneously. Moving and relocating offices can result in lower costs, bring about greater efficiency and just about a change, which might break the monotonous drudgery of working in the same space for years, and might herald some good luck.
7. CUT DOWN ON STAFF
This step may have been listed last on our list but it is the most important and it is one of most touchy topics. When it becomes difficult to carry you, you will need to find ways you can sustain and someday you will need to cut down on your costs, and hence you will need to lay off some of your staff. It will become imperative and obvious at some point and something the turnaround management consultant will let you know when it becomes you.
Corporate restricting for bringing around a turnaround with the help of turnaround and restructuring consulting firms entails some tough steps to be taken and it can be done by laying off staff so that you live to fight another day, you move ahead but with a lesser burden. Yes as some corporate restricting consultants will tell you, after a point when the times continue to get the bad, the people who were indispensable proponents of your business not a long before, will now become a burden to your business because, you can’t afford to pay them since there is not enough money coming in.