When an airplane goes into a tailspin, chances are it will crash. However, there still are a few maneuvers an experienced pilot can do towards a safe recovery. To avoid the disaster, two factors are the most important: experience and altitude. If the pilot has not been trained for these situations, even if the aircraft has enough altitude, the story will most likely not have a happy end. On the other hand, even for the best pilots there is a point of no return (PNR), where the lack of altitude will make futile any attempt of recovery.
There are many reasons why a business can fail, but one of the lead causes is because its officers don’t recognize, or accept their weaknesses and don’t seek help from others. Or they do it too late, far beyond the PNR. Actually, business organizations often decline much faster than they grow – a phenomenon known as the Seneca effect, named after the Roman Stoic philosopher who once observed, “Fortune is of sluggish growth, but ruin is rapid.”
SIGNS OF DISTRESS
- An important drop in sales
- One or more dysfunctional departments
- Declining or negative free cash flow
- Shrinking EBITDA* margin
- Inability to meet debt covenants
- Frequent customers complains and low ratings
- Large or unplanned reductions in workforce
- Increase in Accounts Receivable aging
- Employee absenteeism or theft
- Legal issues
- Conflicts between partners
- Frequent management turnover
*EBITDA: earnings before interest, taxes, depreciation, and amortization.
Using the aircraft example above, when a business starts spiraling down, it does not necessarily have to end in a crash. Do not panic! History abounds with examples (Apple, Starbucks, BestBuy, etc.) where experienced “pilots” have managed to turn around failing businesses into success stories. Your first battle (not the war!) is won when you realize and admit the company is going in the wrong direction and look around for help as soon as possible.
There are many reasons why an organization can fall apart. If one department is rotted, it will cripple little by little the whole business. Most business owners are not even able to identify the causes (at least not in an objective or realistic manner), while others have the ability to see it but lack the knowledge, skills, courage, or strength to take the right steps.
Experienced business transformation consultants at Sublimity Enterprises have an exceptional track record of changing the fate of their clients’ distressed organizations and writing success stories.
If contacted on time, we can assist our clients not only through a safe recovery, but even help them revert the descending trend. We can do that by first identifying the problems through in-depth audits, field investigation, real-time departments assessment, or benchmarking, then solving them through strategy, operations, or turnaround & restructuring consulting, as needed.
Above all, Sublimity Enterprises stands out for its focus on implementation, which is where most other consulting firms just skip or fall short of expectations (leaving one of the hardest and most complicated parts of the job up to their clients). It is easier to merely devise and communicate a list of goals and strategies to a client, but we don’t stop there. We are ready to assist you, step by step, in materializing those promising ideas and plans, or even enact them on your behalf.
WE TURN WORDS INTO DEEDS
If you see that your revenue or profits are dwindling, your business is on the verge of collapse, or you feel powerless while dealing with the challenges your organization is facing, then you need someone to count on for competent and reliable support. A lot of money and headaches can be saved by a business owner when hiring our consultants.
Next steps
Talk to one of our transformation experts
Diagnosing the problems
Stabilizing key operations
Drawing the Recovery Plan
Implementation
Assisting you through the implementation process, while trying to ensure (as much as possible) minimal operational disruptions
Testing and Correcting
Test all systems and functionalities. Correct any irregularity. Retest.
Assessing the results
Consolidating
Preventing future failure (through training, coaching, risk mitigation planning, etc.)
Schedule your initial FREE 20-minute consultation with one of our experts and find out how we can help you transform and make your business great again!