Turnaround Engagements – Give Your Company a Chance
Running a business in Australia can have its challenges. From fluctuating market conditions to cash flow pressures, many businesses find themselves in a position where implementing a turnaround strategy (e.g. company restructuring) is the only way to survive.
What to Do When the Road Gets Tough
In this situation, recognising financial turmoil and responding quickly is vital. Sweeping problems under the rug, failing to challenge the business model, and avoiding necessary business restructuring has been the cause of many business failures.
But if you address a major issue in your business early enough, you can minimise its effect and may even be able to achieve a successful turnaround.
To complete an effective business turnaround strategy, you’ll need to:
- Analyse the situation
- Implement a strategic plan
- Move forward with your business.
These steps involve making decisive decisions for your business. And seeking expert help to calculate the right business decision – whether it’s a tight business turnaround or corporate insolvency – is crucial to discovering the best outcome.
Our experts can talk you through your situation and provide detailed advice. Get in touch for a free consultation today.
If a turnaround strategy seems like the ideal option, what next?
How to Start a Turnaround Strategy
First of all, you may not need to claim corporate insolvency. That’s why it’s good to start with looking into a turnaround strategy. You can begin this by:
- Analysing the financial situation
- Determining the chances of your business’s survival
- Exploring relevant strategies
- Developing a preliminary action plan.
During this stage, you’ll need to address how urgent business problems are and the effects they may have – both obvious and unobvious.
Is your business viable?
A viable company has 3 major requirements:
- Having one or more sustainable businesses
- Owning adequate (and available) financial resources
- Having sufficient organisational resources.
If you can’t tick off the above 3 requirements, your company may be in a declining business position – where you’ll need expert input.
For businesses that have all 3 requirements present, you can begin addressing where the strengths and weaknesses are (e.g. strengths in operations, but weaknesses in organisational structure). You’ll also need to create a strategic turnaround strategy plan that includes clearly defined goals.
Moving Your Business Forward
If you’ve implemented your turnaround engagements successfully, the next and final step is to slowly return your organisation to sustainable performance practices. Rather than continuing to focus on correcting problems, you can now focus your attention on:
- Return on equity
- Enhancing economic value.
This is the new beginning – where your business has found its breath again and can start moving forward.
Examples of Ways to Increase Profitability
There are many steps your company can take when it comes to moving forwards. Some of these include:
- Initiating new marketing programs to broaden your business and customer base, and increase market penetration
- Increasing revenue by carefully adding new products
- Securing customer loyalty through better customer service
- Rebuilding momentum and company morale – transforming negative attitudes into positive ones as you map out the company’s future.
Taking action early and seeking appropriate advice from your advisors is key in any turnaround. If you don’t, the situation may soon be out of your control.
For insightful information on business turnaround and restructuring, discover our range of articles and videos here.
For more information on business turnarounds or corporate insolvency in Australia, get in touch with us for a free and confidential consultation