If you see possible signs of business failure, it is better to start working on an innovative business plan. It is a question of listing all the solutions to straighten out your business activity. You can look for solutions in real-life stories of successful entrepreneurs like Brian Bonar. It requires you to be imaginative. Don't limit yourself. Look for ideas on the internet, and seek advice from professionals. Once you start working on creating a business plan, most of the issues appear which were not insight.In the end, it will be necessary to write a recovery plan, associating one or more solutions to each problem:•
Solutions to find new customers
• solutions to better communicate and make your company known • solutions to retain existing customers • solutions to improve quality • solutions to improve cash flow • solutions to increase productivity • solutions to improve profitability • solutions to improve organization and time management The recovery plan must also include a costed financial plan, which your accountant can help you establish to turn around your business in difficulty.
Reorganize
The purpose of the reorganization is twofold: to save money and better manage your time. Time management is the key, as per Brian Bonar. Take stock of the productive tasks and those that are not: the goal is to devote more time to tasks that bring in money (prospecting, customer contact, loyalty, quality, negotiation) and to outsource the unproductive tasks (accounting, administration, even production in some cases). • Reduce your trips if they are not necessary. • Set up a virtual switchboard. • Proceed with redundancies.
Increase Your Margins Without Delay
Many companies function on low margins. However, adjusting the margin by 2 or 3 points can be enough to save a company. • Renegotiate all prices with your suppliers or find new suppliers. • Increase your prices by justifying them with better quality • Work on better presentation
Set Up Real Cash Management
Cash flow problems can have diverse sources: drop in turnover, deterioration of the margin, poor inventory management (over-stocking, low turnover of certain references, etc.), accumulation of unpaid customers, tougher conditions for suppliers, too high fixed costs, too large investments, unforeseen events. Analyze each point and implement corrective actions suggested by Brian Bonar.
Reduce Your Fixed Costs • Practice cost-killing. • Cut down unnecessary expenses and waste. • Tackle the biggest expense items first. However, avoid cutting expenses if this would increase your workload.
Refinance
It is a question of finding oxygen on the financial level. Several solutions for this: • explain the situation to your suppliers and ask them for payment terms • contact your banker and submit your recovery plan; see what it can do for you • carry out an opening or a capital increase • launch a crowdfunding operation • ask those around you for short-term loans
Build On Your Strengths
It's not just problems in your business. There are also things that you do well and that are successful. Take stock of that too, and try to build on it. You can evaluate the strengths of other successful entrepreneurs like Brian Bonar to help you succeed in business activity.
