From Profit Erosion To Maximization
Bankruptcies & Closures
“Too big to fail”, “It won’t happen to us”, “We are very experienced and have seen this many times” …….
These are the typical thoughts or talks among the management of businesses that were once dominant but now struggling. It is important to be positive but do you have clear game plan to manage Complexity, Competitors and Change? These are the same issues that have resulted in closure of companies that were over 100 years old or were market leaders till 5 years back.
The difficult economy has reduced the demand and competition and a price war can create a fire-fighting environment for even the best firms.
A business that is seeing reduced profit for two consecutive years needs take a serious review. There could be complex issues developing into a crisis.
Points to consider,
- What happens if you lose 1 or 2 major accounts ?
- What happens if the market goes down further ?
- Have you been cutting costs to see profits ?
These are no longer unlikely scenarios. Businesses continue to fail as they are not willing to get help at the right time.
We assist our Clients in managing a crisis and convert it to an advantage. These are done under strict confidential agreements.