Business turnarounds: how to lead your business out of a crisis

Business turnarounds: how to lead your business out of a crisis

Try as you might to mitigate risk, to take out measures that defend your business against hardship, and limit exposure to careless decisions, almost all businesses will reach a point where a crisis can be declared. Whether large or small, financial or otherwise, tackling a crisis head on and steering yourself clear of such stressful situations will prove challenging yet rewarding.

In fact, seeing the opportunity of navigating your way out of a crisis as a challenge is a great way to approach the situation, as it provides the chance to hone your leadership qualities and demonstrate to others within your organisation that you possess the talents to overcome difficult periods in your business.

Follow these few steps to ensure you’re able to face down such crises and see your business back on the road to recovery.

Objectively admit there is a crisis 

One of the key challenges of any crisis is to be able to step back and look objectively at the problem at hand. While it may be difficult to admit when something is failing or an issue has arisen, burying your head in the sand is of no use to you or your business. Denial should not be a trait you hold when in a position of leadership, so try to separate your emotional feelings – such as those relating to pride – and view the problems objectively to ascertain where difficulties lie.

Optimise working conditions and personnel

When we talk of business crises, we predominantly refer to financial hardships experienced by an organisation. Finding a way to optimise the work conducted by your business is therefore essential to recovery. Conduct a thorough assessment of the business value for every element of your business; for those not delivering acceptable ROI, don’t be afraid to make a change. When it comes to personnel and business restructuring, this may prove a particularly difficult situation to overcome, but the future of the business – and many other employees – may be counting on it.

Prioritise revenue-generating work 

The assessment of business practices will highlight those areas where expenses can be cut and value is being added, and will demonstrate those projects which return the most revenue. During a crisis, maximising the revenue generated by your company is of the utmost importance, so prioritise those projects that will support your business in the immediacy as you seek to lead your company out of danger.

Review and learn

Ensuring that you embrace the crisis as a lesson in how to grow and develop your business is key, so learning from any such incident will stand you in good stead for the future. Thoroughly documenting and reviewing the processes used to recover from a crisis will help you both avoid future scenarios and recover quicker should such issues befall you. It may be a tough learning process at the time, but there will be value to take from tackling such obstacles head on.

Overcoming difficulties in business is simply part of the learning curve of running your own company. But, by taking the time to consider the situation, or by seeking out independent, third-party advice, you can succeed in driving your business out of a crisis and on to future success. For more details on business restructuring and overcoming business crises, contact South East Accountants – Kreston Reeves – today and speak with an advisor.

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