Given the current economic climate, it’s not unexpected that many businesses are struggling or are in deep crisis. Engaging a skilled team of business turnaround specialists early could rescue the business and change a bleak outlook into one of opportunity.

To effect a successful turnaround, a strict process of stabilisation, recovery platform creation, identification of strategic options and, finally, the delivery of business growth and development must be followed:

1. Early intervention
One critical factor influencing business recovery is time. Denial is a major obstacle to early first aid, problem containment and an easier restoration. Directors need to act swiftly and decisively to maximise their rescue options.

2. Clear objectivity and decision-making
In times of crisis, panic ensues, causing a paralysis of decision-making and strategic thinking. The prime focus of maintaining business activity is lost, reducing operational efficiency. Committing to specific objectives and the effective management of all stakeholders is mandatory.

3. Cash flow management
Taking firm control of the cash flow cycle to maintain liquidity needs immediate attention and encompasses assets, creditors, debtors and possible refinancing and restructuring.

4. Managing an emotionally charged environment
It’s common to discover internal disagreements and blame, which are extremely damaging to the recovery process. An impartial and independent advisory team skilled at mediation and possessing technical expertise is essential.

5. An enterprise-wide focus
An urgent and thorough enterprise-wide examination needs to be conducted to diagnose problems, effect stabilisation and recommend the appropriate rescue strategy. The critical components for a successful rescue include expertise, time, objectivity, finance and a strongly managed strategy delivered with consistency and commitment.