The growing business handbook : inspiration and advice ... - Sparkler

Managing setbacks and turnarounds
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Customers – far too often businesses continue to trade during times of
difficulty on the same basis as before the setback. Opportunities for reducing
credit terms and focusing on improved debt collection may generate immediate
cash benefits.
Idle assets – are there opportunities to sell unencumbered non-critical assets?
Conclusion
Being alert to possible setbacks on the horizon and tackling the difficult decisions that
can be associated with business turnarounds usually pays dividends. Turnaround
plans are not an exact science, however in more cases than not they are often
underpinned by common sense during a time of great uncertainty and panic.
Building a clear and robust turnaround action plan, supported with strong internal
and external channels of communication, will go a very long way in providing clarity,
stakeholder confidence and increasing a business’s chances of success.
Mike Wellard, partner, and Alex Nowak, senior manager, work for Mazars Business
Recovery Group in London. The team have extensive experience in advising different
companies in a turnaround situation and on the unique challenges they face.