Need Help with a Turnaround or Expansion?

Not Sure How or What to Do when it comes to Turnaround or Expansion?

If so, we developed several case studies and guides to help explain the steps required for Turnaround or expansion. This page is designed to provide a high-level overview of the key principles. If you haven’t completed the Small Business Assessment, we suggest that you do. 

Turning around a Troubled Business

We begin every small business turnaround analysis with 4 key areas for exploration. We walk through them below. This leads to a formal analysis of your key financial statements: income statement, balance sheet, cash flow, aging receivables, trend analysis, etc. 

Customer

How do you define your target customer? Are there segments that are more valuable than others? It helps to rank them by current value, future value, and so on to ensure you are spending the most effort serving the right customers.

How do you build customer relationships? How do you identify them? How do you cultivate them? Which means or methods are the most successful at converting them?

What does it cost to acquire your customers? Maintain them? Are there other direct or indirect costs?

Many of these questions are answered in your Marketing Plan. We offer some free business tools to help build a plan if you do not have one. If you find you need help, please contact us.

Generating Your Value

How do you create value? What is your value proposition? What need do you solve, and how do you solve it uniquely? How do you differentiate yourself from others?

How well do your current offering or offerings meet the needs of your customers now? How about a year from now? And how do you know?

Many of these questions are answered in your Marketing Plan. We offer some free business tools to help build a plan if you do not have one. If you find you need help, please contact us.

Delivering Your Value

What are the key activities and steps required to deliver your value proposition to your customers? Can you list them all? Are there any steps missing?

What resources are required to deliver your value proposition to your customers? Are there any gaps? Have you identified them all, both fixed and variable?

Are there external partnership(s) on which you rely to deliver your value proposition to your customer? Key suppliers? Deliverers? Contractors?

We offer some free business tools to help complete this analysis, and if you find you need help, please contact us.

Converting Value into Cash, a.k.a. Getting Paid

This section focuses on the converting sales to cash. What is your inherent cost structure? Cost of Sales? Variable Costs? Fixed Costs? Taxes? Liabilities?

How do you realize your revenue? Is it immediate, or is there a delay? How long do most of your receivables age? Any in default of your payment terms? etc?

All of this my seem very esoteric, but it really matters. In our funding section, we discuss the importance of managing cash and having enough on hand. It’s always very important to remember profit is like food, while cash is like air. You suffocate within minutes, while you can last days without food.

 

We offer some free business tools to help complete this analysis, and if you find you need help, please contact us.

Managing Growth & Scale

Many of the challenges successful small business face arise from the need to transition from an owner mindset to that of a CEO

Owner

  • Complete control of the business
  • Highly involved in the day-to-day operations
  • Intimate knowledge of all the details
  • Playing multiple roles
  • Not usually accustomed to delegating
  • Business model, systems & processes are usually not optimized

.

Transition

To build scale effectively and successfully, the person in charge needs to transition from an owner mindset to a CEO mindset. While it sounds simple, it's actually one of the leading reasons business fail to build scale successfully.

CEO

  • Shared control of the business
  • Focused more on strategy & growth, much less on the day-to-day
  • Relying on others to manage the details of the business
  • Focus on leading & managing
  • Delegation is a way of life
  • Business systems & processes are much more formalized and optimized

ProStrategix Transition Planning Process: