To put it simply, business turnaround consultants are brought into a business, along with their experience, knowledge, and objectivity, to identify and correct all of the different elements that are causing a business to struggle.
There could be issues related to management, marketing, product or service quality, customer service, and the list goes on. Therefore, a true business turnaround consultant is well-versed in the application of all business functions and can quickly spot where change is needed.
While there are numerous different types of business turnaround consultants (corporate, small business, industry-specific, etc.), many of which having varying processes and procedures, here are five things they all typically do, to some extent, when working with a business that requires their expertise.
1. Financial Analysis
A business turnaround consultant cannot operate without a clear understanding of a business’s financial situation.
So, one of the first things a business turnaround consultant will do is perform a financial analysis. Not only will this paint a clearer and more-accurate picture of the business’s dire state, but it will also uncover many key financial ratios.
For the business turnaround consultant, it’s all about helping the business attain maximum operational efficiency. Therefore, the consultant will then use this financial information to identify exactly what areas of the business need attention.
2. Strategic Planning
After a business turnaround consultant conducts a financial analysis to unveil the business’s problems, frequently referred to as areas of opportunity, it’s now time to put together a course of action.
A strategic plan will outline the necessary steps and estimated timeframe to tackle all of the identified issues, as well as whom will be responsible for each of the tasks at hand.
Keep in mind, a strategic plan is simply that – a plan. It will almost definitely be updated and altered as the plan progresses to allow for unprecedented considerations.
This stage of the business turnaround consultant’s work is relatively self-explanatory. It is now time to execute the plan that has been put into place.
It is important to note that while some business turnaround consultants jointly execute the work with the individuals of the business, some consultants have nothing to do with the execution. Their involvement in the business from this point forward is all up to how the consultant prefers to position themselves and their services in the market.
4. Evaluation, Assessment, & Modification
As we’ve mentioned, a business turnaround consultant’s strategic plan is not a set-it-and-forget-it kind of plan. In fact, it’s very common for a consultant to tinker with the plan as their time with the business progresses.
A business turnaround consultant will continually evaluate, assess, and oftentimes modify both the strategic plan and the execution of that plan as unforeseen opportunities and threats come to light.
This moment envelops everything a business turnaround consultant stands for – the results.
Obviously, the goal is to produce the results that were expected and intended in the financial analysis and strategic planning stages; however, there’s always the possibility that certain issues within a business never get resolved.
It’s up to the business turnaround consultants, or sometimes referred to as hatchet men to, again, evaluate the situation and either propose a new solution to correct that problem or cut that area out of the business entirely.
For performance-based business consulting, contact The Business Turnaround Group.