Business Restructuring Procedures
We give you practical business restructuring procedures that you can use with any financially distressed business. Our guide is for business restructuring consultants, executives and business owners. In addition, this guide will be useful to career-changers interested in the business-restructuring field.
In a business restructuring, you will need to have in place a trusted leadership team. This team should not be the same one as what got the firm into trouble. We recommend that you remove any leader on your team that is not open to radical change or unwilling to support you through the business restructuring.
Once your team is in place, these are the business restructuring procedures you should follow:
- Cut any area or product in your company that is unprofitable or does not produce cash.
- Restructure your debt. This will mean communicating with your creditors and banker about your firm’s troubles. Propose a repayment plan. (By the way, the Insider Secrets guide that is recommended later does an excellent job covering debt restructuring for your business.
- Sell unprofitable assets and divisions. Don’t let anyone tell you that you cannot sell something because it is “strategic.” Remember, if it doesn’t produce cash for the firm, it is not “strategic.” (By the way, consider firing the person trying to save the unprofitable “strategic” asset.)
- Speed up collections of your accounts receivable. Simple “bug” phone calls from you and your accounting department can increase cash flow significantly.
- Keep your employees motivated and focused on the company turnaround. Motivated employees are important if you want your firm to survive.
As mentioned above, the best guide available on this subject is The Insider Secrets to Saving Your Business: The Step-by-Step Turnaround Guide. This business restructuring guide explains in detail turnaround planning, debt reductions, assets sales, collection procedures and employee motivation.
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