Business Turnaround Strategy
Business turnaround strategy is a process that enables a business to survive and recover poor financial performance.The turnaround is often facilitated by a specialist external business turnaround consultant with experience in executing the business recovery process.
Are you considering turnaround consulting to turn your business around? A good turnaround consultant can help you review your company structure and implement strategies that increase profitability and decrease costs. This guide will provide helpful information on finding the right consultant, setting goals, and executing plans.
“When a business turnaround strategy is required, it represents a crucial step in fixing the underlying business issues. It should be seen as a positive action by business leaders. The alternative to the turnaround, including maintaining the status quo, could lead to the company’s failure.”
Michael Vincent – Strategic Goal Management
Business Turnaround Strategy Factors
Business turnaround situations are required because of the following circumstances:
- Poor financial governance or performance, resulting in the company making losses or drastically reducing profitability.
- The economic collapse of a significant client leading to significantly reduced turnover.
- Loss of a large contract that was responsible for a high proportion of company revenue.
- Competitors with better products are overtaking it. This can be caused by needing to keep up with the latest technological developments.
- A high level of aged receivables causes a lack of operating cash flow to cover business overhead.
- The business may have been removed from crucial supplier lists due to non-payment of invoices.
- Macro environment events such as COVID-19, the war in Ukraine, high inflation, and other legislative changes.
- When the business does not have enough funds to pay their staff.
- The loss of a critical business leader or change of ownership.
- Excessive levels of staff turnover due to poor management and leadership.
How Does Business Turnaround Consulting Work?
Turnaround consulting is a process used to help companies turn their business around and improve their operations, profitability, and overall performance. The goal of turnaround consulting is to identify the problems holding the company back and develop strategies for improvement that involve implementing changes that align with the company’s goals.
Generally, turnaround consulting starts with a diagnostic or discovery phase to identify and evaluate the areas that need attention and the transformation that is required.. The stage can include everything from financial analysis, strategic planning, and organisational culture to digital marketing. Next, the consultant will work with the client to develop goals for the turnaround process and agree on a timeline. Then a strategic road map is agreed upon to ensure the desired outcome is produced in the agreed time frame.
Defining Milestones and Goals
Working with a turnaround consultant should be an enjoyable and successful experience. After hiring the right consultant, you need to join forces and clearly define the goals for the project. Set measurable milestones and create short-term and longer-term objectives that you and your consultant can work towards to reach your desired outcomes. Not only do realistic goals benefit both parties in this business relationship, but they also ensure everyone is on the same page regarding returning positive results.
Turning around a business will take significant work. Still, with clearly defined milestones and achievable goals, Strategic Goal Management Consulting can can get you back on track to continuing growth. Objectives could include reducing overhead, improving technology and processes, or streamlining operations. However, all turnaround consulting should focus on the most significant goal: profitability. Suppose, for any reason, a company’s profitability is dwindling. In that case, a turnaround consultant can quickly assess potential areas of improvement and develop viable solutions.
Developing and Executing Turnaround Strategies
Once the goals are established, your consultant will develop strategies to help you transform the organisation. These strategies should be in line with overall objectives and individually tailored to include the strengths and needs of the organisation. Your consultant should create a plan that accounts for contingencies, so even if something unexpected occurs, guidance is still available to ensure efficient execution. This strategy should be regularly reviewed and adjusted to ensure smooth implementation.
What is Business Turnaround Strategy Consultant?
A business turnaround consultant is an individual that has the requisite experience and skills to help companies improve their financial condition. The consultant will work with business owners and key stakeholders to understand the root causes of the current business context to develop a bespoke business turnaround strategy.
As an experienced business leader and turnaround consultant, I have led successful business turnarounds that have saved companies and significantly improved their financial condition.
What Should You Look for in a Turnaround Consultant?
When looking for a turnaround consultant, it’s essential to look for someone with extensive experience and a proven track record of success. An experienced consultant will know how to identify issues within your company and the strategies to resolve them most effectively. Furthermore, they should also be able to develop customised solutions tailored to your specific needs. It’s also beneficial to look for up-to-date consultants with industry trends and technologies to leverage existing resources or create new ones if needed.
Above all else, you’ll want to ensure the turnaround consultant you hire listens to your needs and is dedicated to helping you succeed; in addition to their expertise, they should also be able to provide support and trustworthy advice based on the current market conditions. Additionally, the turnaround consultant should have access to any resources or connections necessary for developing strategies that will help improve your business’s operations and bottom line.
The key takeaways if you are going to plan a turnaround strategy:
Don’t wait too long to get expert help; change the situation before it’s too late.
- See the transformation as the positive step that it is
Be completely honest with your consultant; it saves time and cost in the long run because all the relevant information has been given.
Do not be embarrassed about the situation; the necessity for business turnaround is widespread.
Ask for expert help and get your business back to its best.
The Insolvency Service
You should be aware of the Insolvency Service that is a UK government agency that provides support and advice to businesses facing financial difficulties. The agency provides resources and advice on managing financial difficulties, including a list of approved turnaround consultants. The agency also offers information on insolvency procedures and the legal requirements for companies facing financial problems
One of the critical resources provided by the Insolvency Service is the Company Director Disqualification Act. The Act provides for the disqualification of directors who have been involved in managing a company that has become insolvent due to their actions. This Act is essential in ensuring that company directors act responsibly and take necessary measures to prevent insolvency.
Strategic Goal Management Consulting are Business Turnaround Strategy Specialists
A successful turnaround strategy is essential to ensure that a company facing financial difficulties can recover and prevent insolvency. To develop a successful turnaround strategy, a company must understand and address the underlying causes of financial difficulties. Common causes of business financial difficulties include poor management, lack of innovation, poor cash flow management, and changing market conditions.
A company facing financial difficulties can recover and prevent insolvency by developing a successful turnaround strategy. A successful turnaround strategy should include reducing costs, increasing revenue, and improving operational efficiency. The strategy should also focus on customer retention, improving employee morale, and building a solid brand image.
We Can Provide Support For Your Business When You Need it Most
Strategic Goal Management Consulting supports business owners with best practices and tailored approaches to solving problems. We are proud of our proven track record of achieving business excellence, we accelerate growth, deliver positive change, and develop leaders as par of our management intervention. Key to our process is setting, tracking, and executing strategic business goals.
To find out more about how we can help you and your business turnaround click the button below. Alternatively take a look at some our articles that will provide insights into how you can improve yourself and your business.
For More information call: 07858790182 or email [email protected]CONTACT US FOR HELP WITH YOUR TURNAROUND