We sometimes get asked – How do I revive a dying business?
While no two companies in business recovery are the same, there are often many of the same issues that arise when dealing with business failure and company rescue situations. We set out some of these below.
How do I revive a dying business will usually involve some sort of business restructuring or company restructuring plan, looking at a business turnaround to lead to business recovery. In any business recovery situation, it is important for company rescue and business recovery to stabilise the business, and defining a business recovery strategy is often key in any method of company rescue.
Cash flow injection
How do I revive a dying business is often something said by an owner of a business which is experiencing cash flow difficulties. When considering how do you handle a cash flow shortage and therefore how do you prevent a business from failing, directors should prepare a plan to work out how can you prevent a business from failing if they have no cash coming in for say 7 days, 14 days or 28 days. That way a business owner will be prepared to handle a cash flow shortage which is vital to any successful business recovery strategy to bring about an effective business turnaround and company rescue. Taking control of cash flow and sorting out proper business funding is therefore crucial when considering how do I revive a dying business.
Reducing waste & overheads
It is often important to reduce overheads and cut out the waste in a business turnaround. Remove the nice to have during a company rescue, and anything not essential to the business recovery strategy. Work to identify an appropriate finance partner to work with you to restore the business in business turnaround to bring about a successful company rescue and business recovery.
Only keeping the best employees
Other options on how to revive a dying business are to keep on only the employees who are essential to the business recovery strategy, or, for employees with a lot of experience, you may be able to agree to cut their hours temporarily with the hope of increasing them later.
Better strategic planning
Lack of strategic thinking in management is often a cause of business failure and will undermine any company rescue and business recovery. A key turnaround strategy for business in crisis is understanding your customer. In a company rescue you must understand your customers well.
Take advice from a restructuring professional
Finally, for an effective business turnaround and company rescue, it is often very effective to approach a business rescue expert to seek their opinion on how can a business avoid failure, and discuss with that business rescue expert an effective business recovery strategy.
At Francis Wilks & Jones we have a wide range of experience in providing advice around all types of business recovery strategies for businesses. If you want to know how do I revive a dying business, then getting early advice from a business rescue expert who can advise you on the right business recovery strategy for your business will be key. The longer you wait, the fewer options you will have on business turnaround and the greater the impact will be on the possibility of company rescue. Contact us at Francis Wilks & Jones to talk through the options for your business today.