How to Turn Around a Failing Company
Presented by FreeEnterprise.com. Corey L. Massella offers advice about saving and revitalizing a failing business.
Stressed? Worried about this year’s numbers? Apprehensive over changing technologies? Concerned with competitors determined to undercut your pricing? Business owners and executives that answer yes to any of these questions are… completely in the norm, and certainly not alone.
Rare is the business that succeeds without hitting any potholes, or without experiencing some serious rough patches. Competition, evolving technologies, marketplace shifts and even changing customer preferences can sometimes spell trouble. When a company experiences substantial declines, business owners and executives can take one of two actions: 1. Pack it in; or 2. Make changes. For businesses in trouble, and even those just keeping their heads above water, there’s no time to waste in starting on the road to recovery.
Determine the Problem
The first step is determining the problem or problems that created the business’ descent. An analysis of the financial statements is a good place to start. They can help pinpoint an issue beyond just “declining sales” or “increased expenses.” They can show if a specific product is not selling or if increasing labor costs have swallowed profit margins. But most times, digging deeper into the numbers with a professional’s assistance is critical.
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Corey L. Massella, CPA, is a partner with the accounting and business consulting firm Citrin Cooperman, and is the CEO of the firm’s SEC Solutions Group. He brings more than 20 years experience in counseling entrepreneurs in financial and business strategies, including structuring, negotiating and executing mergers and acquisitions, completing due diligence and preparing companies for public offerings. He is also a board member and sponsor for the Financial Executives Institute (FEI), Keiretsu Forum and the Long Island Capital Alliance. He can be reached at 212/697-1000 or firstname.lastname@example.org.