What are the Benefits of Fixing a Business?
As companies grow and employees and business owners are stretched thin, all manner of mistakes, errors, and accidents that can put one’ company at risk become more likely to happen. If the company has a glaring weakness that is probably invisible to one because one is too close to see the problem. One need to look at four vital factors and see which of these is causing the major headache for your business. The goal here is to quickly determine what’s “wrong” with your business — or more precisely, the critical area to focus on. One of the ways to find company’s weakness is to perform a quick scan of the major parts your business, and then get more specific in examining the troubled areas.
To overcome operational or financial challenges and improve performance, one should consider quickly stabilizing one’s cash and liquidity positions and taking a realistic view of current options.
One of the approaches for stabilizing the underperforming companies is by identifying opportunities for strategic, operational, organizational and financial change and executing on them to achieve real results. One has to establish a solid ground for a turnaround by assessing your liquidity position and creating a stakeholder management plan. On has to focus on the key questions through the critical stages of change management.
- Option identification: How can I quickly and effectively assess my options?
- Stabilisation: How can I stabilize the business and assess its financial position?
- Turnaround strategy: What are the financial paybacks of the various options?
- Execution: How do I ensure full delivery of the turnaround plan?
- Value realization: What risks and costs are associated with each path, including contingency plans?
When a company is facing financial problems, stakeholders often look for additional information or resources to help rebuild their confidence. The complex landscape of borrowers, lenders, and shareholders and to manage stakeholder communications, so one has to stay in front of the issues and make the best decisions. By assessing short-term liquidity requirements and consider actions to quickly preserve value and address potential risks to stability. One has to focus on the key questions as one navigate a corporate restructuring to achieve sustainable, operational and financial change.
- Appraisal: Do I have enough liquidity to keep operating?
- Options assessment: Do I know what has gone wrong and how to fix it?
- Stakeholder negotiations: How do I keep everyone engaged in negotiations?
- Development of options: What sustainable capital structure offers the best prospect of success?
- Execution: How can I settle all stakeholder positions to implement the new capital structure?
- Ongoing monitoring: How do I ensure that the business is supported by its recovery?
When a company is in distress, the management team faces many competing challenges. One has to assess the situation and, if necessary, with developing a practical insolvency plan. One has to identify the path that will help maximize available value. One has to assess the impact and risks of various options, identify the right filing jurisdiction and prepare a detailed insolvency plan that optimizes the stakeholder positions. One has to position its company for a return to health and financial standing. One has to focus on the key questions through the development, implementation, and completion of an insolvency.
- Distressed corporates: How serious is the problem?
- Insolvency planning: What are my options?
- Commencing insolvency: What needs to happen when my company is in a formal protection process?
- Implementation: How do I maximise value?
- Exiting a formal process: How does my company get back to normal?
Steps for Fixing Big Business Blunders
- Act fast and fix it. Look at the damage that was done and what needs to be done to make it right which means that both are taking care of those who were inconvenienced, uncomfortable or hurt by the mistake, as well as changing your systems to ensure it doesn’t happen again.
- Silence is golden when one has a migraine, but there’s no headache like leaving people to draw their own conclusions about one’s intentions. Tell them what the company is going to do to fix the problem. If one stays silent, then the audience, and, in some cases, the media will assume the worst of your actions because it’s more interesting.
- Walk the talk. Once the company has fixed the situation, you need to keep on top of the new checks and balances you’ve put in place to ensure that bad habits or complacency don’t reappear. Billing manager now does monthly audits to ensure that mistakes, if they do happen, are caught quickly.
- To find what’s wrong with your business, think like an emergency room. Start with what researching on the same and think about the vital factors or areas i.e. the big areas and then narrow down to specifics. One has to scan its business in terms of the areas, and that too fast.
- If all are working and properly synchronized with the each other then the company will tend to be vital. Vital literally means life-giving. Vital companies thrive. They max out engagement surveys. They cannot innovate. They see setbacks as opportunities. They are immune to everyday problems like retention, recruitment, and compliance with laws. They want organizational structures that make sense & they shall not tolerate tyrants, bureaucrats or low performers
- The first vital factor is a strategy. The unique and valuable proposition to the market. If people both inside and outside your company don’t understand what’s unique about the business, product or service, you have a strategy problem. And if that’s the case drop everything else and get this right.
- The second vital factor is structure. This is your formal organization, including the people in key spots, their jobs, their authority and who reports to whom. A company in trouble often focuses on structure because it’s the easiest to work on.
- The third vital factor is your processes and systems. That includes all the formal methods of getting work done. Key processes include staffing engagements, prototyping technology, experimenting to test business assumptions, performance appraisals of employees and business units, and customer relationship management.
- The fourth vital factor is culture. Its what people say about themselves, their work and each other, and whom they say it to (the informal structure).
The Company should firstly have their key team all to take that “how to fix your company” questionnaire. Secondly, have a brief meeting for the sole purpose of discussing what answers each person received. Thirdly, schedule a meeting to decide how one will make rapid progress in the required area in minimum time. if you are running a Private Limited Company and facing issued in fixing your issues, let us know here at Enterslice we help companies in fixing and resolving all business issues.