Turnaround and Performance Improvement Advisors

 

What Causes Many Business Failures

·         Management in denial – hope business will improve, cannot admit failure
·         Me-too Boards (support CEO, contribute little of substance and often not asked)
·         Illusionary reporting – not focused on right, actionable numbers, limited or no focus on cash flow and the future
·         Too much debt, limited disclosure of debt service needs in context of cash flow and liquidation value of assets
·         Assumption that landlord or government paid capex is free money – in fact it gets paid back through higher overhead. “Free-money” is too-often the vehicle for growth as distressed businesses attempt to grow and spend their way out of trouble
·         Lack cash flow management on daily, weekly, rolling 13 week basis
·         Lack detailed business/financial plan scenarios and tracking to worst-case scenario
·         Do not get and stay lean while being mean (must focus on top line too, the customer and technology to build loyalty and brand)
·         Fail to use outside, objective, unbiased, independent business assessment and appraisal services and also to vet plans
·         Communication – must listen to associates, customers, vendors, competitors and communicate openly and objectively with key management and associates
·         Talent – must attract and retain best affordable talent and people that take action and not just “say yes”
·         Management must be willing to put skin in the game take whatever actions are required for survival