When should I consider turnaround management?
Despite the fact that recent figures have shown that the economy is making a gradual upturn, with GDP growing by 0.1% in Q1 according to estimates from the National Institute of Social and Economic Research (NIESR), some businesses may still be struggling to keep pace with the needs of an ever-changing market.
It’s at this point that businesses may consider drawing on the expertise of professionals who can manage the process of a business turnaround by completing a detailed analysis of any problems that a business may be facing, as well as providing new solutions.
Turnaround managers can offer a fresh perspective on business operations, developing an action plan on areas including refinancing, cashflow management, operational restructuring as well preparing and implementing a comprehensive business plan that will provide a solid vision for the future of a business.
Here are just some of the scenarios where firms may want to consider seeking professional advice on the management of a business turnaround.
Market lag
If a business has failed to adapt to the needs of a rapidly developing market then it may find that it fails to keep up with its competitors and sales/market share dip as a result. Turnaround managers can help to identify exactly why your business is mired in a market lag, whether this lays with your products, services or business model, before helping to address these issues.
Rapid growth
Businesses that are keen to make their presence felt in the market may have expanded their operations, such as increasing their number of outlets or penetrating overseas markets, only to find that they are unable to manage the needs of this larger company.
This may also have taken place when firms have grown organically, such as if they are in a burgeoning sector.
Turnaround managers can help to bring a company which has experienced explosive growth back on track by using their expertise to assess the company’s financial models.
Poor relationship with lenders
Struggling companies can soon find that their financial problems mount up, putting a continued strain on their relationship with lenders and investors. Turnaround managers help resolve these issues by managing/collecting debts and selling non-core assets such as stock to generate much needed cash for the business.