Business Turnaround or BUSINESS RESTART™?
Business Turnaround the word
Icebreaker executives have c100 years combined experience of various degrees of business turnaround. Turnaround, whilst being an established term, is meaningless as “turn” & “around” like “do” “not”. There is no change – you are back to where you started from! Oddly enough a well conducted business turnaround is rather like steering the Titanic off the rocks – financially it looks like nothing has happened!
Traditional Business turnaround strategy
The traditional strategy was to cut the business back to a defend-able core, and build it back up from there. When in fact business models, sources of revenue require adapting with far more flexibility
“Selling a Business turnaround”
Very often the circumstances for owners and managers are that they would rather not admit to one nor is there an adequate response from professional services to meet their needs, so business owners become stuck with nowhere to turn to. When you go to A&E you expect a team to repair you, not a solo agent with a sole agenda or limited capability.
Business restart is more of what is required as the business model in its current form can be flawed, market dropped or the means of value creation has disappeared.
When is a business “turnedaround”?
The stakeholder’s perspectives are often conflicted. Business turnaround perspective depends on who you are talking to; refinancing – no. We define it when the business is restarted in a way that robustly and sustainably secures the business model and viability
The supporting vision required to create a sustainable source of value (profit for a foreseeable period) AND REMAIN THERE!
- The vision to do this goes well beyond one man’s view – it requires vision as to what excellence looks like and how to get there; it is essential in icebreaker executives view to have people who have run award winning businesses and who are relentless in achieving excellence.
What are the circumstances in which to restart a business?
- Business turnaround is where a business is in need of restarting, for example if it has run out of cash and it cannot fund itself moving forwards
- no viable plan in which to invest
- a business model which is no longer profitable
- customer service is so bad that the business is always on the back foot and costs are too high
- the business is over trading and cannot fund its success