See Also:
SWOT Analysis
Core Competencies
How to Turn Idle Cash into a Valuable Resource
How to Prepare a Flash Report
How to Prepare a Breakeven AnalysisYour company is losing money, has no cash and you can see the end in sight…what main areas do you need to address to turn around your company? ¶
Steps1.
Stop losing money. Stop waiting for financial information if you are behind on financials. Instead, find where the company is losing money and stop it, even if you have to calculate on the back of a restaurant napkin.
Catch up on financials as quickly as possible, but remember that financials are often a look in the rear view mirror. Don’t wait to review this historical information to act!
2.
Collect accounts receivable. Shift your resources from paying bills to collecting cash. Without cash coming in the door, your efforts to turn the company around will be ineffective.
3.
Stretch accounts payable This is your cheapest form of credit! Work out payment terms with your vendors and ALWAYS keep any promises to pay you make. People will work with you.
4.
Improve long term processes. This takes a while to do, in fact months. Most companies try to assess where they are to begin to make good decisions. This is not the best approach. Spend time determining where your processes need to be and focus your efforts on getting there. Here are some steps to get you started: Make a list of tasks that need to be accomplished to get your processes in shape, prioritize the tasks, develop a time line and determine what can reasonably be done and in what time frame and monitor your task list often.