Turn Around Your Struggling Company | Answers to Your Frequently Asked Questions
Where Can I Get Turn Around Information?
The best source is The Insider Secrets to Saving Your Business
by Dan Betts of Turnaround Central. This is a hands-on guide by a well-known
consultant. Click turn
around to learn more.
Should I take bankruptcy?
This is your last resort. Most firms, except for only the largest, cannot
survive the legal squabbles with creditors and the high court costs and
attorney fees. Your chances of surviving bankruptcy court is only one
in five.
Should I hire a turn around consultant?
This makes sense for most firms. Although they can be expensive for a
small or medium sized business, you can engage a specialist on a part-time
or “coaching” basis to lessen the cost. Expect a part-time
consultant to cost around $1500 to $3000 a month. A full-time consultant
can run you up to $50,000.
Can I fix my firm?
Usually, yes is the answer. It is most important to understand why your
firm is in trouble and then find out what part of your business is profitable.
You then rebuild around the profitable parts and cut the losers. This
normally means that you will be cutting 60 to 80 percent of your operations.
You can then sell these non-core assets for a much needed cash infusion.
How long will it take to fix my company?
Typically, it takes about 18 months to restructure a company. The most
critical period is the first 90 days in which you must stabilize your
cash position. If you get through this period with enough cash reserves,
your firm has a good chance for survival.
Can I be sued?
Unfortunately, you can be sued when your firm gets into trouble if you
are a director or an officer of the company. Your creditors can sue you
for breaching your contracts and both investors and creditors can sue
you for breach of fiduciary duty. You should make sure that you have a
personal asset protection plan in place to keep from losing your house.
The Insider Secrets turn
around guide
mentioned earlier has a chapter on personal asset protection
for business leaders of troubled companies.
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