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