The turnaround plan for businesses on struggle street. By Steve Marsten.

Recently I called a client who has not been in touch with us for a while. Things have been tough during that time and they finally came in and admitted their business was struggling and they wanted guidance and direction.

After a very positive and forward thinking meeting we came up with 10 points to reinvigorate and turn their business around.  In this article, we will cover the first 5 points and next week we’ll discuss the other 5.

1. We re-visited and re-wrote the business plan.

Owners, management, the bank, and employees all need to know what the business’s future plans are. They need to see where they fit in, how they can help, and how they can share suggestions based on their expertise that will help the company succeed.

Companies that write and follow well-thought-out plans are much less likely to get into trouble, but when you’re already in trouble is when you need a plan most of all!

2. Meet with the key people

You must get the key people in the business together to have a no-holds-barred discussion on how to fix the business. 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. The key in this type of meeting is to be self-assured, open-minded, and flexible. Having a facilitator often helps with these meetings to balance the difficult parts of the conversation and keep things positive and on track.

3. Revise Plans

After listening to key personnel in the business and discussing important aspects of your plan, revise the plans again before presenting them to either the board of directors (if you have one) or your leadership team and then the employees.

4. Meet with the 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 relevant parts of the business plan and ask for their input.

5. Meet with your customers

Rumors of your imminent demise may be swirling around the business community. Key customers may become nervous and some are even looking for new vendors. Don’t stick your head in the sand. Inform your customers about your situation and tell them how you plan to correct it. Be reassuring, but not deceitful. Be on the frontfoot and not the backfoot!

At Sothertons we have assisted many businesses turn things around. Its hardwork, however there is a high probability of a great outcome. Call us on 4972 1300 to find out more.