Why do we meet owners on or nearby the business?
We have little need for premises, and to do our job well we need to be with you, at your facilities. Our team are very comfortable in front-line shop-floor industrial situations. We do our job better if we can use all our senses to evaluate your business.
As we progress past the early phases of the turnaround process your staff will recognise that we are part of the team.
Initially everyone will be thrilled to see owners engaging professional expertise, because they are aware the business has problems.
However, as time goes on, those (whatever their position) who are poor performers become disenchanted, when they discover they are expected to have a higher level of performance. Often, those people don't survive the turnaround. The business needs everyone on the team focussed on set goals. So there can be very little tolerance for incompetence and absolutely none for insubordination.
What characteristics should business owners have to succeed?
A structured turnaround solution requires a commitment from business owners too. It's a process that works only if you;
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Maintain a strong commitment to work hard.
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Know that "more money" is no longer the answer; significant changes are necessary to restore profits.
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Accept that you may have to step back for a while, so the interim CEO, CFO or CRO are empowered to act decisively.
This is too often too hard for an owner that has put everything into their business. However, to gain the confidence and support of lenders and creditors who want to see action, taking a back seat may just save the sinking ship.
How do we access internal communications & reporting?
Open access to internal communications and systems is essential if we are to provide all parties a fair assessment of the initial situation and commitment to a workable turnaround process. This means physical access to your premises, employees, suppliers and customers as appropriate.
Secure access into business systems is via the Internet. If it’s not available then we’ll work around it. Either way our team should have reasonably free access for day-to-day internal communications, operational and financial reporting.
When do you decide to rescue, rebuild or exit?
We fundamentally believe all businesses can be rescued and rebuilt. Our key issue is whether or not the [present] management can manage the business through the process. If not, we can run it through the turnaround?
Once a company is financially distressed, it's very difficult to compete. So it must only focus on core profitable products and services. Once stable then restructuring and revitalising become the focus. However, if it's in a rapidly changing industry where there's a lot of consolidation, finding a strategic exit could be better solution.
When is the best time for TBP to exit?
For best results we are contracted to stay onboard until the business has turned around and is securely heading on a strategic growth path. The owners may feel comfortable to continue as before or choose to appoint new professional managers. We will have done our job.
In stressful times there are some questions your 'should have asked'.
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