By Anjie Lal Relationship Specialist
The prospect of insolvency in your business can be daunting, but if you recognise the direction of things early enough and apply an effective business development strategy, you may be able to make a turnaround before it’s too late.
Quite often we get caught up in the day-to-day running of the business and in keeping ourselves afloat, we forget to take the time out to re-visit our business development plan. With Christmas looming before us, this holiday period could be the perfect time to go over your business development plan to increase profitability in the New Year.
Following the steps below can help you revive your business.
- Re-evaluate your situation
First, diagnose what’s wrong. Examine your products, your customers, your finances, your business processes, and the people in your organisation to identify which elements are supporting you—and which ones are bringing you down.
- Crisis management
Once you know where the problems are, you need to stabilise the situation. Aim to restructure your finances and business just enough to maintain liquidity of funds and create a window of opportunity for lasting changes to be made.
- Redefine your strategy
Make strategic or objective changes in your business’s approach to reaching its goals. Focus on patching holes in your organisation’s vision, purpose, brand, mission, and values.
- Employee retention and re-employment
Identify the people within your company who are providing the most value, as well as those who are performing below expectations. You need to cut the fat—keep the right people on board and let go of dead weight.
- Improve process and products
Make sure to update your products and business operations to bring them in line with the times—and to ensure that you differentiate yourself from the rest of the market. Innovate and upgrade periodically in response to market demand and the needs of your business.
- Restructure financially
Cut costs where possible and lay off unproductive or unnecessary staff. If you need to raise cash quickly, consider selling off some fixed assets. If necessary, look for external funding to help keep you solvent whilst you implement the changes that will support your business into the future.
- Return to normal
Once your cash flow has stabilised in the positive and everyone has acclimated to the changes, it’s important to return to an atmosphere of normalcy.
“Focusing on business development means creating long-term value for your organisation from a combination of customers, markets, and relationships.”
Focusing on business development means creating long-term value for your organisation from a combination of customers, markets, and relationships. It’s not a short-term, stop-gap fix. The point is to set up opportunities for value—in the form of money, prestige, and success—to flow into your business indefinitely.
Condon Associates has the expertise to help you diagnose your needs, put together a turnaround plan, and implement it so that you can bring your company back from the brink. Call or email for a consultation today.