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The Seven Steps for Business Turnaround and Recovery
Step 1 – If there is a train coming around the bend you need to know about it!
The first step in any business turnaround is to know where you stand from a cash perspective. If there is a problem on the horizon you need to know who big it is and then use this knowledge to develop strategies to deal with the situation.
Prepare a cashflow projection, ensure it is based on when monies will actually be debited or credited to your account – not when the sale is made or invoices are issued. If needed, do the plan on a weekly basis at least until the major storm has passed. Also remember to update the plan each week based on what actually occurs.
A cashflow projection will do one of two things – it may help alleviate unnecessary concern, or act as prompt for action to help remedy the situation.
Step 2 – Only make commitments you can meet
Now that you know where you are at, you may need to contact suppliers and your Bank to negotiate payment terms for outstanding accounts. While they may not be happy, if you are open re your situation most will listen. However remember to only make commitments that you can and will meet!
Step 3 – Refocus on what made you successful in the first place
When a business plateaus or things do not go to plan, it is often because we have drifted away from what made us successful in the first place. Step back, review your strengths and the drivers that were in play when you successful. Ask what has changed? What have you stopped doing? Are you making the most of your strengths?
Step 4 – Review your business through the eyes of your customers
A simple but powerful way to improve your business can be to review every element of what you do – every way you come in contact with your customers – through your customer’s eyes.
Done properly this can be a confronting but truly transforming exercise that can dramatically change the way you run your business.
Step 5 – Does your business stand out from the competition?
Does your business have a clear point of difference relative to the competition? Is there something either better, or different, or unique in the way you deal with your customers? In what way do you make your customer experience memorable – something they will tell others about?
Not sure? – Then do two things;
First list every way you come into contact with your customers. Think about what could you do differently to stand out from the crowd?
Second look at your competition, what do they do well? What do they do poorly? Where are the gaps – things you could do to create a point of difference?
Step 6 – Focus on what’s in it for your customer – their world!
Review all your promotional material, advertising and website – do you talk about your business and products or about how they can transform your customers world?
When your customers buy, they looking for what the product or service can do for them – the benefits they can gain, the problems they can solve, or the risks they can avoid. The actual product or service is simply a means to an end!
Focus on what the customer is really interested in – you will be surprised by the results.
Step 7 – Making the Magic Happen
Start allocating time every week and day to focus on doing the things that are needed to improve and grow your business.
Ask yourself am I doing what is needed to grow my business or the things I like doing? Misallocation of time and resources within a business is often one of the greatest impediments to growth we at ClientEdge encounter in the work we do.
By simply setting dedicating a couple of hours per week to think about how you can improve your business – the way you serve your customers – remarkable ideas for change can evolve.
Summary
Business turnaround and recovery it is not about spending more or even working harder, but being more focused as to where money and time is allocated within the business.
If you would like to know more about the ways ClientEdge can help transform your business give us a call today on 03 9923 2750
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