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Would it surprise you that most companies have no written and shared plan?

Are you and your company merely settling for operating OK?

Do you have a plan? Not some vague idea floating around your head, but an actual plan that is on paper and shared with employees.

Most companies out there operate in this manner and it generally leads to POOR performance.

This is not restricted to a specific industry either. We've worked with companies in transportation, manufacturing, distribution, nursing homes, you name it.

Your plan must be written down and everybody needs to understand how to make it happen.

Here are some ways to help create a plan that will work:

• The plan doesn't need to be complex. Often a 2-page summary works great.
• Break it down into two sections, 90 day goals and 1 year goals.
• Someone must be accountable for each line item.
• Each of the goals must be measurable or result in some form of a grade.
• You must train or educate your entire staff on this plan.

Once your plan is put together, any obstacles that stand in the way of your success need to be identified, investigated, and solutions purposed on how to remove it from your path.

As the plan is executed and things start looking better, you need to constantly go back and review the plan.

Ask yourself and your staff:

• What can we do better?
• Does this add value for our customers?
• Are these the right metrics?

Most companies have an extremely hard time getting through this simple process.

Does this sound familiar? Have you faced set-backs in previous planning sessions?

The key is to keep it simple, and work on a single section or a single goal at a time.

In many cases, having a skilled restructuring consultant can make a HUGE difference to the success of this plan.

Our clients began work on their plans immediately after our first meeting.

If you would like help setting up a plan that works email me at scotlund@genesisturnaround.com or give me a call at 248-396-1208.

Remember - Don't just fly by the seat of your pants, make a plan.

Last year I was the guest on a business talk show on Fox News business WAAM radio 1600AM in Ann Arbor, Michigan. The name of the show is "It's Your Business, Make It Happen." In the show we discuss the challenges of troubled companies, as well as important advice for healthy businesses. The show ran  around 45 minutes. We discussed common problems within troubled companies and how they can help themselves. We also discussed several other tools that would help any company become more stable and profitable. You can listen to the show at this link: soundcloud.com/genesis-turnaround/its- your-business-show

Companies fail for many reasons. The most common problem (not the reason) is that you run out of money. You probably borrow money as a normal part of your business, and when times get tough, you draw on the funds available from your lending institution. When you expend those funds, you stick your head in the sand hoping business will get better. Unfortunately, when you do get additional business, you will likely not have the funds to complete the work. Procrastination and ignorance is never the answer. If you procrastinate it can cost you your company. If you have a healthy company, than these practices will only make you stronger company and help keep you out of trouble. 

As a Turnaround Specialist and former owner of several companies, I quite often hear business owners tell me it is the economy’s fault. Nothing could be further from the truth. You are responsible for the situation you are in. As the economy changed you could have read the tea leaves, made some moves and still been in a relatively solid position. Instead you ignored the signs. Here are some tips on how to get your business back on top:

• You might start by creating a 13 week cash flow report that encompasses all revenues and expenses of the company. This is your bible. Use it and update it every day. Teach your management staff how to view and use this tool as well.
• Get everyone involved. When troubled comes most entrepreneurs do not seek the help of their team or professional help, but instead try to solve the problem themselves. They usually make the wrong moves or no moves at all.
• Create a short term strategic plan with daily, weekly and monthly milestones to be measured and reported.
• Right size your company. Do you know what your revenue per employee is? Do you know what it should be? If the staff or assets or not used to help you accomplish the goals outlined in the strategic plan above then you should lay them off or sell the asset. Keep only those assets that help you achieve your short term strategic plan.
• Get additional financing if needed. Professional help will get you a great chance of finding additional funds.

My experience has taught me that time is not our friend. By waiting for things to turn around or simply by trying to work harder cost me my company. We all have the ability to act if we choose to do so. My life’s lessons have made me a very effective Turnaround Consult.  They have taught me to be highly judgmental, get the numbers and take action quickly. When I engage with a new client I quickly gather the required information, make a short term plan and begin to make changes within a few days if not sooner.

If your company is in trouble or you simply are having a hard time managing cash flow then you have a problem.  I encourage you to act now. If you can’t do it yourself then get some professional help.

Don’t procrastinate, Act! If you do not know how ask for help.

Every company known to man is not unique. They belong to a group. These groups can generally be categorized using SIC codes that describe what industry a company is in. With each segment, there are variables such as area of the country and revenue size. We are able to compare your company to your industry competition using this data. The right information can tell you how you stack up in the following areas: gross profit, net profit, borrowing capability, debt to equity ratio, current ratio, quick ratio, account receivable days, account payable days, sales per employee, your overall liquidity, and health of your company. These are the numbers you should definitely be paying attention to in order to efficiently run your company. This report can also help you shape the future in order to improve your performance in each of these areas. We believe this should be done every year to compare your performance year over year. We are offering to prepare this report for you at no charge.

When sales slow many companies begin to explore other avenues to make money. Unfortunately, they often look completely outside their existing customer base in order to find these sales. This can be quite costly. You are basically creating a whole new company. Instead your best option is to look at options that work with your existing infrastructure and customers. This is commonly called a "pivot." When you try to grow sales you should ask yourself "can I sell this new product or service to my existing customer base? Is it something we can do without great effort or without leaving our existing core business behind?" Troubled times should not be the point at which you take a leap on something new. While your core business may be shrinking, taking a leap of faith on a new product in a totally new market will only increase your risk of failure. On the other hand, if you have determined without a doubt that your existing product base will never support your company, then maybe you should rethink the entire enterprise. I urge you to get consulting help with your strategic decisions. It is hard for owners to be candid and objective about their own businesses. Do not act rashly, it could cost you your company.