Pivot back to profitability
Business turnaround consultants help you with crisis management and cash flow challenges. Turn to a professional for turnaround management.
What is a turnaround consultant?
A company turnaround consultant corrects business losses, bad debt structures, cash shortfalls, and other factors that have put the business into a cash crisis.
Crisis management is different from normal business management. A turnaround consultant prioritizes your cash flow management, works with your lenders, and does what is needed to get your business back on track and poised for new growth.
What company would benefit from a turnaround consultant?
The early stages of business distress often don’t feel like a crisis, but ignoring the symptoms always make the problems compound. Your company may benefit from turnaround consulting services if:
- You regularly struggle to make payroll.
- Your debt keeps increasing or debt payments are eating up your cash.
- Vendors and contractors are asking about late bills or threatening to stop doing business with you.
- Your sales are growing but you never have enough cash available.
- Your company is suddenly unprofitable, and your accounting staff is unable to tell you why.
- Your company is consistently profitable, but you are running out of cash.
If your company fits one of these bullets, contact a business turnaround specialist immediately.
Engaging a turnaround specialist early opens up more options to you and can ultimately cost less in the form of lower interest rates, egregious lender fees, and aggressive actions by creditors, suppliers, and other parties.
Will my lenders panic if I tell them I’ve engaged a turnaround consultant?
Lenders, suppliers, and other stakeholders will be relieved that you have engaged a turnaround consultant. Lenders know the signs of a distressed businesses but they often are not in a position to take a deep dive or provide advice.
Telling them that you have decided to engage a qualified turnaround management service is a good step toward rebuilding the lender relationship and moving past the current hurdles.
Do turnaround consultants take equity or business ownership?
CFOshare does not take equity in our clients. We strive to preserve your business and ownership. Turnaround restructuring is required which may include refinancing debt with personal guarantees, pitching outside investment, or selling your business to avoid bankruptcy. Turnaround restructuring should be a last resort. They are typically reserved for companies who waited too long to engage a consulting service for performance improvement.
What services are typically offered in a business turnaround?
There is no “one size fits all” approach when it comes to restructuring, a turnaround consultant should customize their approach to your situation. Turnaround management often involves:
Negotiating with suppliers and vendors
Managing cash with a 13-week cash forecast
Restructuring high-interest debt
Analyzing margins and pricing strategy
Selling assets
Repositioning the company in its respective markets
Closing unprofitable lines of business in favor of the core, cash-generating part of the business
Conducting a reduction in force (layoff)
Turnaround consulting typically addresses business problems from multiple viewpoints: Financing, Operations, Strategy, Marketing, and Pricing, to name a few. In a comprehensive review of what went wrong, what can go wrong, and what risk management strategies can be put into place to grow the company and prevent recurrence of financial distress.
Business turnaround management also performs a critical assessment of the company’s business plan, long-term financing arrangements, and management team, providing candid advice about changes needed to ensure success. As you phase out of crisis management, a turnaround consultant may recommend long-term financial management services, such as forecasting, budgeting, or variance analysis.
Has my business failed if I engage a business turnaround specialist?
The best business owners in history have faced downturns. Those who used their professional resources to face the distress came out stronger. Those who faced the crisis alone usually failed.
A turnaround is a period of transition, renewal, and pivoting toward growth and prosperity.
Earlier intervention can lead to a better outcome and provide your business with the best options, so if you have any doubts, please contact us today.