The Three Basic Components Of An Effective Turnaround.

There are a number of grand misconceptions floating around out there causing breakdowns in implementation of successful turnaround strategies. Confusion and lack of clarity can result in self-defeat.

Here are a few truths that support success:

1. YES, absolutely, you must DOWNSIZE! And you must do so drastically.
2. YES, absolutely, you must REDUCE YOUR CASH OUTFLOW AND OVERHEAD! Everything gets cut to the bone, and deeper.

However, there is a “but” (and this is component #3).

BUT—and this is critical—these are supportive strategies. This does not mean you should cease your sales and marketing operations. In fact, quite the opposite is true. If success is to be ripped out of the claws of defeat, it will be done on the back of:

3. increased sales revenue while downsizing and cutting overhead.

That is the secret formula.

One problem, no credit is available, making this a lot tougher to accomplish.

The combination of increasing sale revenue while cutting overhead and reducing debt should be powerful enough a combination to support a few months of C.O.D. terms while you reestablish trade credit and build some cash and sales momentum.

Of course, the debt reduction component—the loan workout with debt forgiveness being the only acceptable conclusion—is the key to the entire cost and overhead reduction plan. Without it, all is lost. No form of turnaround strategy will succeed without a secured loan workout and debt forgiveness. It all must be done.

Call us for help. Norm will arrange a no-obligation teleconference for us to review and discuss your options: 413-584-2581.