Business Turnaround
We are seeing the most difficult trading conditions for over a decade and many businesses are losing customers due to the recession, losing market share, and generally experiencing a downturn in trade.
If you are experiencing cash flow problems and a lack of working capital or suffering from mounting business debt and need help to save your business then please give us a call.
We will discuss your options with you and the advantages and disadvantages of some of the choices available to you. You will have heard of business re-starts (sometimes known as phoenix business) or pre-packs and we will give you honest impartial advice about the actions you should take.
The important thing is to act now, as soon as your realise your business has problems and is in danger of going bust.
When a business faces financial trouble there are a number of immediate steps that should be taken to stop the situation worsening and the business going under.
- Analyse your exact position - how bad is it really?
- Who do you owe money to (tidy up your ledgers)
- Who owes you money
- How much do you owe in loans and overdraft?
- What is your exact cash position
Although if your business is insolvent you may need to consider putting the business into Administration, making a Company Voluntary Arrangement (CVA) or liquidating the company.
- Avoid increasing your indebtedness to your creditors
- Talk to your creditors and explain what you are trying to do - enlist their support
- Keep paying your employees
- Cut your costs to the absolute minimum, and as quickly as you can. Look at your direct debits and cancel all non-essential payments
- Try to sell some stock quickly to turn it into cash - old stock and slow movers
- Chase your customers for payment - sort out all the slow payers and get their cash
- Ask your bank for help - but make sure your have an up-to-date cash flow forecast so you can show them that you have a plan
- Ask your accountant for advice
Assuming it is not too late, these steps will help you avoiding bankruptcy and will afford you the time to develop a rescue plan.
We can help you with the business rescue plan which may involve:
- Restructuring the business
- Refinancing the business and securing gap funding
- Raising funding - turnaround funding
- Finding investors - Business Angels or Venture Capitalists or other types of private equity/inward investment
We will then work with you to build your business back up by increasing sales and improving your profit. Our sales strategy will boost your sales and increase profit margin so that the company has a stable base.
We can offer our expertise to help you during the difficult period of trying to save your business by providing interim management and director services including:
- Temporary Managers
- Temporary Sales
- Temporary Marketing
- Temporary Directors
- Temporary Managing Directors or Non-Executive Directors
Once your business is on an even keel then you should think about your own goals and the business objectives.
Let us come and spend a few hours talking with you about what you and your business needs to do to prevent business failure. This is without any cost or obligation to you.
Please browse our website for more information about our Business Turnaround service at Real World Business for Increasing Sales and Profits then contact us on 01909 512182 to speak to one of our team or e-mail us on info@realworldbusiness.co.uk
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