Turnarounds can have pretty negative connotations…
But a turnaround situation doesn’t mean the business desperately needs to be rescued.
More that it’s underperforming and has veered off-track.
So what does a business turnaround involve to get things back in shape?
Well, business is all about solving problems and turnarounds are the same:
🔍 Diagnose the issues. It’s pretty common for business owners to identify most, but not all of what needs fixing. Or they spot the symptoms, but not the root cause. So don’t waste time and ask the right questions from the start.
🔍 Define the outcome. If you’re looking to exit in the next couple of years, make sure you know what that looks like on a personal level. Working backwards, you’ll naturally find some clear milestones on the way to realising that outcome.
🔍 Put a plan together. This will only work if you use a simple and effective framework. If cutting costs and improving cash flow are part of the plan, you need to know how and where you will have greatest impact.
🔍 Let people know. A turnaround will directly and indirectly affect your staff, investors, suppliers, customers and various partners. Make sure you have a clear narrative for each of them.
🔍 Evolve it. One of the reasons you want a simple plan, is because it needs to be refined as you go. But you also need to track progress against the plan and make adjustments over time. Otherwise it’s pointless.
🔍 Stay the course. It’s easy to let the plan and reality diverge – and drift back to a ‘business as usual’ mentality. Keeping the plan alive takes regular discipline and focus.
🔍 Close the gap. Focusing on a turnaround, can be hugely distracting to the business owners, who are also dealing with day-to-day operational issues. Bringing in partners from outside your business can get you results more quickly.