| At the opening of a New Year, many people make | | | | 5. Contact past due customers. Your customers are |
| resolutions involving their personal health, personal | | | | your business' lifeblood. Without their payments, you |
| goals, and much more. For those business owners | | | | may just as well close up shop. Contact them to get |
| dealing with corporation bankruptcy, your resolutions | | | | outstanding invoices paid, and if necessary, contact a |
| should focus on the business. A failing business mired | | | | credit agency to collect. |
| in debt or lack of sales can be turned around. As the | | | | 6. Try to refinance your loans. If you have |
| owner and consultant for Turnaround Central, I have | | | | outstanding loans or property mortgages, talk to |
| the experience and knowledge to help you create | | | | your loan officer about a better interest rate or term |
| those resolutions and stick to them. | | | | extension to reduce your monthly payments. |
| Here is a list of 10 resolutions to salvage a failing | | | | 7. Reduce inventory. By liquidating the unsold items |
| business from corporation bankruptcy. | | | | from your inventory and keeping the number of |
| 1. Begin by opening your accounting books. Figure the | | | | in-stock items to a minimum, you can shave dollars |
| amount you have to pay back over a one-year | | | | on your monthly spending and bring in some |
| period. As much as we want to turn away from the | | | | immediate cash. |
| ugly monster that has become our debt, to get a | | | | 8. Reduce costly advertising campaigns. If you don't |
| clear picture of our future we first need to grip | | | | know what sales an advertising campaign is bringing |
| reality. Jot down the amount owed to creditors, | | | | in, you must find out. You can track it by asking |
| suppliers, and anyone else. From that number, you | | | | customers to your store or website how they found |
| can begin to accept the problem and to take action. | | | | you. Then if the campaign is not paying out, cut it. |
| 2. Find cost savings. If you have been working with a | | | | Only keep those campaigns that make you money. |
| supplier simply out of loyalty, and not because they | | | | 9. Cut costly services. Do an inventory of your |
| are offering the best price on the market, stop! To | | | | services and see which ones you can cut or |
| get out of debt and turnaround the business, an | | | | downgrade to save money every month. Land line |
| owner must stop being loyal to a fault and cut costs. | | | | phones, cell phones and online access are always |
| This is your first step in restoring your cash flow. | | | | areas to find additional money. |
| 3. Watch your cash flow. Always know where your | | | | 10. Create a short, medium, and long-term financial |
| money goes. In-house operations can be less costly | | | | goals plan. One long-term goal should be a simple yet |
| than outside jobs. For example, do your printing | | | | comprehensive goal for you to become debt free. |
| in-house; do not pay a copy center to do this. Find | | | | Focus on incorporating your newfound money saving |
| other ways to cut costs. | | | | methods into the equation and see when you will be |
| 4. Know your staff's performance. Reevaluate | | | | in the black. |
| everyone and find out who is slacking off when they | | | | By following my 2007 resolutions to turnaround your |
| should be performing a task. If you have | | | | business, corporation bankruptcy may become a |
| underachievers, fire them. It can benefit you to trim | | | | distant memory in future years. |
| down salary costs while turning around your business. | | | | |