Restructuring Hints & Tips to Fix Troubled Companies
Restructuring your troubled business is a difficult, but doable, task. Expect the company restructuring will consume most of your waking hours over the next 6 to 18 months. But, the restructuring will reward you in many ways.
When you have completed the restructuring, you will have more personal satisfaction than any other time in your professional career. You will have saved jobs, investors’ capital, creditors’ livelihoods and the economic value of your firm. While hard, restructuring of a trouble business is well worth the effort.
To start a restructuring, you must first understand the financial picture at your firm. This means knowing the numbers better than your accounting staff. You need to know what are your most profitable products and divisions and who are your most profitable customers. You should understand your inventory numbers inside and out.
After analyzing the numbers, you must start listening to understand the restructuring needed at your company. Talk to everyone at your firm. Talk to customers and former customers. Talk to suppliers and former suppliers. Find out what you are doing well. Most importantly, you must ask what you need to be doing better.
From the financial evaluation and the one-on-one interviews, decide what business model makes sense for your firm. Here is a hint: Your business model should center around your most profitable products, divisions and customers. Likely, these are the areas where your firm is known for doing well.
After deciding on your business model, you have only one course of action. You must cut everything else. Usually, this will mean cutting 60 to 80 percent of your employees, your revenues and your assets. This will be most difficult part of the turnaround, but it is necessary to save your firm.
To discover more about the restructuring process, we recommend that you read the turnaround manual, “The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround Guide.”
This 465-page guide gives you all of the techniques necessary to fix your struggling business. If more business leaders would read and apply the Insider Secrets guide, we estimate that at least 75% of the firms shutting their doors every year would survive.
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