My first blog on this subject (Business Turnaround) discussed why successful business turnarounds are so difficult. My second blog on this subject (Turnaround – Elements for Success – Action One) discussed action 1 “avoiding cash surprises”. The next blog article (How to Achieve a Successful Business Turnaround) discussed action 2 “using financial information to proactively run the business”. This final blog article in this “Turnaround” series discusses the benefits of using budgeting and forecasting. Continue reading
My first blog on this subject (Business Turnaround) discussed why successful business turnarounds are so difficult. My second blog on this subject (Turnaround – Elements for Success – Action One) discussed avoiding cash surprises. I will discuss the second element of success in this blog; using financial information to proactively run the business.
Too many small businesses only use financial information for what I call statutory accounting. That is accounting information is only used to collect receivables, pay employees, pay vendors, pay taxes, and pay the bank. Financial statements are prepared primarily to keep the banker “happy”.
Financial information is not being used Continue reading
Why is a business turnaround so difficult to accomplish?
First it is necessary that the Business Owner / CEO acknowledge that a successful turnaround is critical to long term survival of the company. Without this step a successful turnaround cannot be accomplished because it usually takes tough actions to achieve a successful turnaround. A turnaround can only be achieved by being top down driven; it cannot be driven from bottom up.
Secondly it takes different actions to accomplish the turnaround Continue reading