entrecode Blog


The 5 priorities when turning round a business

When a business is in crisis sometimes it’s hard to know where to focus.

I have spent 35 years helping to sort out businesses in difficulty and found that there is a priority of actions to follow.

  1. Cash. Get control of the cash, stop spending and ensure you collect as much cash as possible. It’s the first priority because that's what kills most businesses in trouble.
  2. Customers. Reassure customers that all is well if necessary and keep them onside and ensure they are looked after properly.
  3. Margin. The easiest way to make money is to stop losing it. So fix any system slippages and work hard at boosting the margin.
  4. Strategy. Review the strategy and refocus on the businesses core competencies and profitable opportunities. Discard any sacred cows and investments in nostalgia.
  5. Communicate. Keep your team informed and onside but be honest with them that's what they prefer.

It’s hard to keep a cool head in a crisis but this roadmap has served me very well in the past.

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