Nobody sets out in business to fail. It takes countless hours of hard work and dedication to make that idea you sketched on the back of an envelope a reality. Long days, longer nights and no weekends off are par for the course. With all the blood, sweat and tears involved (usually spilled at meetings with the bank) success, and lots of it, is the ultimate goal of entrepreneurs.
But sometimes, despite all your best efforts, a business can run into trouble, even if you’ve had a period of success and profitability. You only have to look through the news to see details of yet another big company folding, going into receivership or just generally struggling in today’s precarious economic climate. And remember, it’s estimated that about a third of new businesses fail in their first year.
If your business is struggling it can be tempting to either batten down the hatches and hope you can ride out the storm, or simply decide to jack it all in. Neither of these are truly viable options. Instead it’s worth considering hiring the services of a firm that offers business recovery solutions. It’s often the case that a fresh pair (or pairs) of eyes can help you identify what’s going wrong and where to make improvements.
So what exactly can you expect if you decide to outlay on the expense of a professional business recovery programme? The first stage will involve an in-depth investigation into both the financial and operational fitness of your company. Some people find this tough to bear, particularly when management comes under scrutiny. Remember, a strong business starts with strong management and any criticism that comes up isn’t personal, but simply aimed at strengthening your company.
Once the performance review is complete you, and the company helping you, will have a much better idea of where things are going wrong, and what kind of steps need to be taken. This leads on to the second stage: strategy formulation.
A good business recovery and insolvency company will sit down with the business owners, management, staff and any shareholders and begin the process of building a strategy for recovery that is practical and sustainable. This could involve implementing training programmes for staff, a reassigning of job roles or perhaps restructuring management. Often an interim manager may need to be brought in to help with this transition while your existing management team receive the help they need.
As well as dealing with issues relating to staff, the company should also analyse your finances and highlight areas that need to be addressed. It could be that you have unused or under-used assets that need freeing up, or that your expenditure on some services is too high. Whatever is causing cash flow issues needs to be addressed so that your business is lean and profitable.
Finally, a good business recovery service should also help in the implementation of their strategy. This can range from –on-the-ground help with management and staff, to aiding in negotiations with lenders and creditors.
If your business is struggling don’t stick your head in the sand. Things probably aren’t going to get better on their own, and seeking advice and help from a professional business recovery company could be the difference between a functioning business and a failed one.