5 tips for SMEs to help turnaround their business
As a family owned business rescue and insolvency practice, established 36 years ago, we are often asked for advice from SMEs on how they can turnaround their struggling business.
Here are our top 5 tips which we hope you will find useful…
Bring in the experts
Every business, regardless of its size, needs to go through substantial change and restructuring on a periodic basis. However, the introduction of specialist external resources will often prove to be more cost-effective than a ‘kneejerk’ drive to cut costs without focusing on the root cause of changes that are affecting profitability.
Consider your routes to market
Clearly the most effective route to a successful business turnaround is increasing sales. Yet there may be changes happening in your market place in the way that customers research and buy your type of products or services. If you’re not careful, you may end up missing out on sales simply because your competitors are exploiting other channels.
Review your marketing
There is little doubt that marketing is the key to any business’ success. Even a brief lack of focus on marketing to existing and potential new customers can be very costly, so you should make it a priority activity.
Ensure you have flexible finance
Your finance partner needs to understand your business and offer facilities that flex accordingly, whether these are seasonal changes or to meet your requirements for business development.
Sort out your bad debts
Nothing is more infuriating than incurring the cost of looking after a client only to not get paid. The relative level of unpaid debt will be crucial to your options going forward, but a firm review of credit control procedures from an experienced team can prove extremely helpful.
“We always put business rescue first,” says Richard Simms, Managing Director, FA Simms & Partners. “These tips are not meant to represent an exhaustive list; just some common examples of situations where we’ve been able to help find a resolution.”
Whatever your individual circumstances we’re here to help and support you at this difficult time. So call in confidence and speak to one of our friendly advisers today.
Visit our Help Sheet page for further helpful materials.