Business Turnaround - If a business is going down in flames, can it be saved? From Red to Black in 30 Days, by Allen B. Bostrom, CPA provides a recipe for turning businesses around. Naturally, not every business can be saved. What is possible? Ken is available to assess any business whose survival you, or your client, is concerned about.
There are nine fundamental keys to turning around a business. These are organized into two sets of three categories:
- Marketing
- Production
- Accounting
- Immediate changes
- Intermediate Changes
- Long-term corrections
Business turnaround, also known as company turnover is a process of dealing with a company's debts by determining how much it makes in terms of sales and assets. It is like a weighing scale of a company's revenue and total gross amount of sales received for each year the establishment is standing.
This also pertains to how fast an inventory is sold or how relevant the purchasing power of buyers are in a certain establishment. Typically, this comes in two different forms - low and high turnover.
As the name implies, low turnover is a result of a company's slow purchasing power. Goods are sold at a slower pace. High turnover on the other hand means the latter. It is a result of a corporation's effectiveness to carry out what is expected from them by consumers.
Business turnarounds is a phrase that is getting more common as companies are trying to get to grips with the new business climate.
The method and the model for doing business has now changed dramatically, every section of the business that one can look at is going through an irreversible change.
The driver for this change is of course the recession and if a company doesn't do something different and an innovative then they will not survive.
The main sections of the business are sales, purchasing, finance and operations.
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