Business turnarounds are a test of your leadership skills when big decisions are needed quickly. The economic situation is bad, so review your business in light of this and do it with brutal honesty.
There are probably thousands of businesses out there who are thinking that the current economic uncertainty could be about to end. It is not and that it is best to imagine how you will be in the worst case scenario. Cash is King and in turnaround situations, it is not the profit or the orders, but the lack of cash that will kill you.
Commenting, Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers Irwin Insolvency said, “A substantial part of cash flow management is dealing with the people who want to be paid. It is good to remember that both creditors and suppliers are also facing a tough time, and if you are missing payments, they might start to judge you as a bad bet. It is advisable to keep your creditors updated and provide them with clear explanations of the predicament.”
Economically, the storm clouds are not about to disperse any time soon and it would be wise to treat this particularly tough business climate as the nom.
Mr. Irwin is of the opinion that for those businesses already in difficulty they should bring in professional advisers, start a review and make some tough decisions. The future may well seem bleak but if that doesn’t kill you it will certainly make you stronger.