Key Steps to Achieving Success in an Underperforming Business
We immediately focus on gathering data at the beginning of a mandate before we act. We analyze the data and segment it into issues that can be dealt with solutions now, solutions in the medium term and those that require long term solutions. In this way we find the low hanging fruit to make changes as soon as possible and create a timetable for implementing medium and long term solutions .By focusing on solutions rather than writing reports, we get results. This means we bring the leadership, experience and expertise to rejuvenate the operations regardless of the industry, service sector or marketplace.
The key steps to achieving success with underperforming businesses include:
- Secure the cooperation of investors and bankers to give us the time to assess if a business can make the transition and, if so, give us the support we need to make it happen.
- Stabilize and improve the cash flow in the business – quickly. We do not hesitate to turn unproductive assets into cash.
- Surface value in the business by improving margins, re-pricing unprofitable customers, and retiring or repackaging unprofitable products and services.
- Simplify the operations of the business including repositioning underperforming assets, workers and managers as well as settling financial and legal disputes.
- Develop a sound plan to expand existing market share and/or open new markets, as appropriate.
- Stabilize and fund the business before implementing the plan.
- Exit the business maximizing value for existing/ departing shareholders, with a management team in place that has the confidence of stakeholders to continue building wealth for the future.
The ingredients for success include:
- Use a team of experts who have an effective process to ensure results.
- Stabilize the business, then build for the future.
- Get help before your lenders act – once your bankers are calling for a review by an accounting firm – it is game over.
At Morley & Associates our specialized services can help jump start your business out of a declining sluggish market.