10 Ideas To Turnaround a Failing Business
Most business owners have had to face difficult decisions when their business has been struggling with cash flow or making a profit. It can be an unpleasant process but here are 10 ideas that will focus your attention to increase your chances of turning around and dealing with any difficult periods your business may be going through.
Outline Your Future Plans
Everyone, including the owner of the business needs to understand and be aware of the future plan's for the business. Everyone working within a business needs to be aware of how they can help, where they fit in and be able to know how they can contribute to the success of the business.
Detailing and following any business, marketing or operational plans will not only set out future goals, but will also highlight potential issues that may occur. This will reduce the possibility of your business getting into financial troubles.
Having the time to outline your plans, especially during any stressful times is difficult. Regardless, your time and energy will need to be invested heavily to turnaround any struggling business, especially in the creation and development of your plans. It is highly unlikely for a business to success without any solid plans in place.
Talk To Employees
With your plans in place, it will be important to highlight the issues within the business to your employees and outline your plans to resolve them. How you do this will be up to you but could be done within a meeting to discuss the important areas of your plans and ask for their feedback. This will validate your long term development of the business to existing employees and will increase the level of support and commitment from them, by demonstrating how important they are in the success of your business.
Speak To Your Bank
If you have any business loans or overdrafts, make arrangements to meet with your business bank manager. Even though you would be delivering potentially bad news in person, they will be more likely to work with and even support you as long as they are confident in your plans to turnaround the financial difficulties which your business is experiencing.
Meet With Vital People
You must ensure you have the important people in your business on board to support you with your decisions when turning around your business. This can include directors, managers and even family members.
In order to do this, you will have to have open, honest and frank conversations about your plans and do so on an ongoing basis. Most people lose their credibility with others if they lack a plan and set of goals for the business.
Talk To Customers
If your business is struggling, it is likely that this may be known to your existing customers. It will be difficult to do, but you will need to talk to important customers to reassure them that even though your business is having a difficult period, you are implementing plans to correct it while not having a negative impact on the products and services you are providing for them.
Contact HMRC & Local Authorities
If you feel that your business is going to struggle with paying any due taxes or VAT, it's advisable to contact HMRC or your local authority if you are going to struggle to pay any business property rates. You will be surprised at how helpful they can be with making specific arrangements for you to extend any payment deadlines which are due. This would be much better that missing any due payments which may give the impression that you are trying to avoid your obligations.
Eliminate all of the costs you don't need. This may be more difficult than you realise but will allow you to extend the time you will need to ensure that your business becomes financially viable.
Contact WL Accountants
If you would like further information or want to know how the team at WL Accountants will be able to provide you with support, please get in touch:
When you implement your plans to turnaround your business, you must be flexible and open to any feedback which is provided by directors, managers and employees. Even though you will want to outline your goals for your business, you will need to revise your approach on how you reach your goals based on any feedback, which will ensure the support of everyone within your business.
Meet With Suppliers
Some suppliers will become difficult to deal with if they hear rumours that your business is facing financial difficulty. This is why you will have to place specific importance on the preparation of any statements that you will want to provide to suppliers which highlight the issues you are having and how you plan to deal with them. If you think it is possible, you may also wish to discuss the possibility of an extended or new line of credit, making sure the you are solid in your plans on how you plan to manage any finance arrangements. Some suppliers may also provide some breathing space for you alternative options with their products and pricing.
Keep Essential Staff
During your planning, you will be looking at any money saving exercises to cut down on your business outgoings. You will need to look across the whole of your company to determine which employees can be let go without severely damaging your business. No Employer wants to make employees redundant but if you are to turnaround your business, you can only keep staff who are closing, referring or managing sales. You could also look at other options which would allow you to reduce the hours for existing employees, if you felt that they need to be retained for the future when the financial situation for the business has improved.
Creditors Voluntary Liquidation
If you feel that your business is no longer viable and cannot continue to trade, we work with industry leading specialists to provide a simple, hassle free process to legally dissolve your business. To find out more, please take a look at our Creditors Voluntary Liquidation or CVL Service.