How To Kill A Turnaround

death of a businessDo Not:

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