From being able to spot the warning signs of a business in trouble to confronting financial issues, our guide to staying afloat explains how advice form a turnaround professional can help your business ride the storm of hard times and go on to even greater success.
These are challenging times for SME’s. Falling property values, rising costs and a consumer market that’s feeling the effects of the credit crunch are contributing to make this one of the most difficult trading times for the past decade.
So what is it that sets apart those businesses that will ride the storm and go on to achieving greater success? Despite the doom and gloom, a well-managed business with a quality product or service to sell can succeed. However, when economic pressures threaten the performance and sustainability of a business, it is crucial that management are on the lookout for the warning signs of a business in trouble. Signs could include;
- Not being able to pay creditors terms
- Increasing overdrafts
- Having an unhealthy dependence on a small number of customers or suppliers
- Production disruptions or delays
- Disputes among directors or senior management
- Unable to get new or extended credit
Most businesses will experience one or other of these factors at one time, but a combination of two or more over a sustained period is usually a sign that something is wrong.
Difficult as it is, management at this point need to take a step back. There are immediate actions that can be taken to alleviate some of the pressure, such as tighten cash flow, confront any financial issues and get some advice from a turnaround professional. At Turnaround Solutions, our aim is to free up business owners to concentrate on the bigger picture and with our help management can stop wasting time ‘fighting fires’ and focus instead on the future growth and success of the business.