There are many reasons in which a once thriving business can require more focus and energy to turn around performance and increase profitability. We have brought together our top tips to turnaround struggling businesses.

Frame the problem

Gain a real understanding of what is happening in your business, it needs to be honest and although it will seem scary it is absolutely necessary. Digging deep into the numbers will give context and understanding of the causes behind the stalling of your business. This way you can quickly get to the heart of the problems and begin to make changes which will have the biggest impact in the shortest amount of time.

Set a clear vision

Once you have the understanding the creation of a clear vision of where the business is heading is essential. It will be your roadmap on how you will achieve the objectives and growth strategies identified in your initial review of business performance.

Make the difficult decisions

For most businesses cutting costs and improving efficiencies are a major contributing factor to moving back to becoming profitable. Some of these decisions can be difficult and seem counterintuitive to the direction you have been heading. But simplification is important to ensure you have the right balance between working capital, equity and debt to maximise returns, deliver growth and survive shocks.

Empower the team

Be open and honest with your team about your position and vision. Understand the resources and strengths your team can deliver, you will need their support and contribution to achieve change and empowering them will ensure they come along on the journey with you.

Track your progress

Constant review and checking in on your performance is critical, tracking progress will provide you with insight into potential changes to your business environment so that you can respond to threats and opportunities. It needs to be timely and easy to digest, but tailored to your needs so that the right decisions can be made at the right time.

Celebrate your wins whilst looking to the future

It can be a time of uncertainty where the focus is on now rather than the future. To retain momentum for your business a long term view is important, ensuring that your team know of your commitment and vision of the future will keep them focussed on achieving results. But along the way remember to celebrate your wins, however small. It will retain morale and keep the team believing in the vision and willing to invest the time and effort to make it happen

If you would like a free appraisal of your business to see how phfAdvisory can assist you in turning your business around reach out to us on info@phfadvisory.com.au