Business Turnarounds

A business turnaround is taking a company that is underperforming and modifying its operations and strategy so that it recovers financially.

Startups who are candidates for a turnaround are not doing well.

They suffer from a lack of leadership, focus, strategy, or execution. 

Consider these steps in a turnaround situation:

Identify the problem. 

This could be a lack of funding, missing leadership, little or no sales and marketing, incomplete products and more.

Set a goal.

Some businesses need years to recover while others can recover more quickly.

Gain consensus on the goal of the recovery.

Determine a strategy.

Focus on the core problem and write out a plan to solve it.

Implement strict financial controls.

Apply strong cash management and tight expense controls.

Work to achieve cash flow breakeven first and then move to profitability.

Increase sales by improving the product, raising the price and converting more leads into revenue.

In running a business, be candid and frank about the current situation.

Be willing to make tough choices around hiring and firing and what roles each one takes.

Everything is open to change including the management team, the product, the target market, and more.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.