How to raise your company from failure to success

If your company is in dire straights and you’re headed to oblivion, below are some of the basic things we can do to extend our competitive company life – our ‘runway’ as it’s often called.

The most important activities are communication and following-through.  Communicate to staff why we’re in trouble and what we’re doing about it.  Communicate to customer and assure them Work In Progress is going to be finished.  Communicate to vendors that the problems are in hand and payments will be made.

  1. Identify current cash burn rate
  2. Identify the core business and where the CEO is taking the company
  3. Keep shareholders and stakeholders informed
  4. What are the outstanding billables/Work In Progress
  5. What projects can be completed in the short term
  6. What new customers can we identify
  7. What does the current P&L/Balance Sheet look like?
  8. Accounts receivable – chase them up TODAY by phone
  9. Accounts payable – negotiate a restructured payment plan – better for vendors to get paid over a longer period than not at all
  10. What staffing structure do we need
  11. Identify the current key problems and who owns them – what are the bottlenecks
  12. What projects and products can be deferred
  13. Identify an approach to trade out of our problems
  14. Make sure you handle the comments and rumors on forums and social networks
  15. Speak with credit providers – can we extend our overdraft or Line of Credit
  16. Speak with non-Bank finance – Angels, VCs
  17. Walk through scenarios with customers
  18. Ask for a stay in repayments with other creditors
  19. Look at current commitments – speak with landlords, service providers etc
  20. What areas of the business are not generating profit – what can be outsourced
  21. What strategies are low priority or have long term horizon profitability planned?

Of course if you have a product or service no one wants, this will simply put off them inevitable.  But if you just need more time with your product or service in the marketplace, these actions will help keep you there.

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This entry was posted in agile, alignment, attitude, cashflow, Effectiveness & Efficiency, executive, improvement, leadership, method, organization change, people, problems, process improvement, productivity, runway, sales, startup, strategy, structure and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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