Do Not:
- Utilize the power of compounding – making steps, big and small, EVERYDAY
- Dissect the balance sheet to assign responsibility and targets (for accountability) for each section
- Review the shareholding structure and the manner in which shareholders should receive returns in exchange for the risk they have taken
- Make decisions based on the Decision Triangle (Tm)
- Utilize a weekly (possibly daily) cash flow forecast
- Set a daily target for sales, cash received, and expense reductions – and celebrate when all are achieved
- Develop a wish list and have some of the “extra” achieved (in the item above) utilized to pay for the items
- Spruce up the work environment
- Figure out how bad it can truly get
- Figure out how to finance the turnaround based on the truly bad version of results
- Figure out the why, how and what of the business
- Organize the business and accountability around where the business should be headed
- Figure out “where the puck is going” and what strengths and weaknesses the business, and it’s markets, have in meeting it
- Dissect the P&L to assign responsibility and targets (for accountability) for each section
- Remember – it’s about CASH FLOW – not profits
- Set minimum transaction amounts
- Constantly review pricing decisions
- Become aware of the risk, assets employed vs benefit to be received
- Have a functioning website
- Provide targets to sales reps and help them achieve those targets
- Pay your vendors on time or early
- Keep your financing (bank, factor, shareholders, suppliers, etc) aware of your situation
- Halt preferred dividends (see above though)
- Halt rent (see two steps above)
- Work out different payment terms with suppliers for a period of time (see three steps above)