Small and mid-size companies can make such dramatic business turnarounds changes. These businesses can have a difficult time getting a line of credit from a bank, typically don’t have meaningful assets to sell to increase the company’s cash position, and can’t afford to lay off large numbers of people.
Business Turnaround – Step 1: Write business, sales/marketing, and operation plans
Rarely do companies who write and maintain plans on an annual basis get into trouble. Plans chronicle the good and bad of the past and set a vision for the future. Investors, management, and employees all need to know what the company’s future plans are so they can avoid the need for a business turnaround. They need to see where they fit in, how they can help, and to share suggestions based on their expertise that will help the company succeed.
Business Turnaround – Step 2: Meet with key personnel and a board of directors or advisors
You must get the key people in the business together to have a no-holds-barred discussion on how to fix the company through a business turnaround. Don’t go into the meeting without a plan of your own. People lose confidence in leaders who lack a plan and vision for their business turnaround. The key in this type of meeting is to be self-assured, open-minded, and flexible.
Business Turnaround – Step 3: Revise plans
After listening to key executives in the business, revise and ask key executives to review the plans a second time before presenting the business turnaround plan to the board of directors and employees.
Business Turnaround – Step 4: Meet with employees
Have a company meeting, admit that there are things wrong with the business, and discuss how management plans to fix it. Provide employees with a copy of the company business plan and ask for their input.