Strategic-Planning
Work with Distressed or Failing Businesses
When I was approached by the frantic owner of a failing business in 1995, we stood back and rationally analyzed the situation. By leveraging the Hidden Assets in the business, getting rid of unproductive staff and refocusing, we turned the corner and the business is still flourishing today.
You know that, when a business is in trouble, logic often flies out of the nearest cracked window and emotional choices rule the day. Yet this is could be an opportunity for you and the owners to benefit. Instead of simply closing the doors and selling off the inventory and equipment on a fire sale, look for the Hidden Assets in the business ? a sales team, intellectual property, customer database, unfulfilled orders, access to residual sales of consumable products and services, relationships, inventory, equipment, distribution and goodwill. These could be converted, with little or no upfront costs, to windfall profits and ongoing income for both you and the owners of the distressed business. You could possibly establish a lucrative, win/win Joint Venture that leverages these Hidden Assets by adding your own distribution, inventory piggy-back or other resources.
The key is finding an open-minded business owner who realizes that he needs help and is mature enough to get his ego under control. Make sure you have adequate contractual protection and be prepared to negotiate. After all, you?re in a position of strength and you can often turn a seemingly bad situation around.
Smart business owners know that it?s wise to talk with objective experts when they?re panicking about cash flow. I know I have had occasion to regain my perspective and regroup when I did so in the past. Together, we can do amazing things.
About Robin J. Elliott For more than 19 years, Robin J. Elliott has worked with thousands of businesses in over 49 industries across the United States, Canada, and Africa. He specializes in helping small business entrepreneurs build wealth and gain access to new markets and profit centers through Joint Ventures. Through his Joint venture Seminars across North America he has thought thousands how to create increasing, multiple streams of income without cost or risk and very little time. Get Robin J. Elliott's FREE: "How To Grow Serious Wealth Using Joint Ventures" Mini-Course, and The Prophet of Profit e-Zine along with video blogs, world class articles, free video, and access to top Joint Venture Partners at http://www.jvwisdom.com |
Robin J. Elliott
Tags: failing business, business recovery, entrepreneur, joint venture, business, leverage, profit, strateSimilar articles
What Is Your Business Strategy?
Unfortunately too many small businesses never think about strategic panning, just getting through today seems to be the goal. There are times when this is the right thing to do, but if you never take time out to manage where your business is going, and how you will take it forward; you will always follow the competition. Read more →When Politics Dominate Your Organization
There are many resemblances between politics and management. One of them is that they both share the development of Policies. Where should your company differ from a political institution in order to be successful? Read more →Writing a Business Plan
Preparing a business plan is the most important part of starting a business. So much rests on the business plan, from financing to suppliers. A business plan shows that you are prepared, educated, and dedicated to your business. Read more →Writing Your Business Plan is Actually Storytelling
Storytelling and writing a business plan actually go hand in hand. The same ingredients used in telling a story are also used in writing a business plan. Read more →Aphorism
For those properly prepared in advance, a bear market in stocks is not a calamity but an opportunity (May 1962)
John Templeton