Causes and Remedies of Business Distress

Conditions remain challenging for many businesses and this could well intensify over the year ahead.

Now more than ever it is critical for management to undertake a strategic review of their business to identify areas of underperformance and possibilities for profit and cash flow improvement.

On a daily basis, we are working with management teams who want to turn their businesses around.

I’d like to share some insights into the early warning signs that we see daily in underperforming or troubled companies, and positive actions management can take to remedy the problems.

Top 10 Tips for Survival in Business

1. Don’t just compete on price

Many family businesses start because the person is a good employee, for example a good tradie, and they go into business based on that skill rather than their business knowledge. So when they get to their first crisis they panic and start discounting. It’s the last thing someone in business should do, but it’s often the first strategy for dealing with difficult market conditions…

How your business can survive the looming economic downturn

The worst thing Australian businesses can do during the “new GFC” conditions they will face over the next year is batten down the hatches and just try to survive.

Signs of economic slowdown in China, combined with a predicted poor retail result over Christmas and concerns over carbon tax impact, mean 2012 will be an incredibly challenging one for many businesses – I believe tougher than the original GFC aftermath.

Whether or not we fall into recession is irrelevant, business is facing extremely tough conditions. We can see among clients that bank finance is becoming tight again and credit rationing will be a factor.

The worst thing a business can do is approach this period with a “bunker down” attitude.

Dangers For Fast Growing Companies

There are as many, if not more, risks for fast growing companies as there are for companies that are underperforming.

It’s very common for businesses to rapidly grow beyond the capabilities of their staff or management team.

At Vantage Performance, we see lots of high growth businesses where the business might rapidly grow 30% to 50% or more in a year and if their management skills, staffing and financial systems and controls don’t keep pace, this manifests in poor customer service, high staff turnover and a decline in profits.

Beware the Business Sale Tsunami – Podcast

Are you a baby-boomer who has been running a business for years and are now looking forward to a well-earned retirement? You’re not alone.

In this BNET podcast, Michael Fingland talks to Bob Kearsley about the challenges facing baby-boomers, when their children are reluctant to take over the family business.

Business Recovery: How To Optimise The Rebuilding Process

After disaster strikes, it’s difficult to comprehend that some businesses might actually emerge from the rebuilding process stronger than ever. Here’s how…

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