07 August 2009

The 6 essential elements in turning around a troubled business

With fallout from the global economic crisis still biting, increasing numbers of Australian businesses are feeling the pinch.

Michael Fingland is a director of the Australian Turnaround Management Association and managing director of leading turnaround management consultancy Vantage Performance. He can share his expertise on what are the 6 essential elements in turning around a business that is in trouble or senses trouble ahead.

These 6 elements are:

 Ability to prove business viability
 Ability to manage key stakeholders
 Management credibility
 Business reputation
 Maintaining supplier credit
 Securing internal and external funding

Some businesses are unsure whether they need turnaround management, others find their company’s problems too hard to face and leave it too late, often ending in insolvency. So how do you know when to call for help? The key warning signs to call in a turnaround management specialist are:

 If you are struggling to refinance or raise additional finance
 If you are experiencing a material decline in sales and/or margins
 If you have or are likely to breach your banking covenants
 If the company has been placed in Voluntary Administration or Receivership (as turnaround managers can work with the directors to structure a rescue plan)
 If cash flow is becoming harder to manage
 If you have ATO or superannuation arrears
 If creditor pressure is building
 If you have lost a major customer
 If you are experiencing an increase in turnover at the senior management level

Our Vantage Performance team is looking forward to interacting with you again.


Michael Fingland
Managing Director

Vantage Performance Team
Profit Improvement and Turnaround Specialists

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1 comment:

fatima said...

the post is related to an important business issue, that is protect our business in critical times .really an informative post,I would be looking forward for further related posts.