If you are in a business trying to grow and scale, some of the key principles in turnaround are applicable to you!
Previously Nick was the ‘turnaround guy’ – going into privately backed equity businesses, usually when it wasn’t going where it should and turning the businesses around. In this episode he shares his expertise and experience of what it actually takes to successfully turn around a business and why the principles and strategies of a turnaround are also applicable to scale up.
When a business is in turnaround everyone is galvanised and focused and that same principle is a superpower for a business, in scale-up.
The 2 critical components of a turnaround are cash and time management, listen in to hear how to get them into your business and the vital importance of being present and focused.
Key customers – visit all your customers and reinforce your relationships. Bundle up sales to make them attractive and sell more.
Lapsed (past) customers - Most small businesses are only serving around 10-20% of the customers they have acquired over the years they have been in business
Going back to past customers and re-engaging can be a good way to quickly get business because there is already a relationship in place
JV and affiliate partners - You have value in your customer base and if you can partner with someone who has a product your customers will choose then you can quickly get money coming in.
Promotion - You should use free or low-cost media vehicles to promote you, your personal brand and your business. social media is a quick way of getting your message out there.
The more leads you have, the more conversations you can have that may lead to a sale.
The opportunities to outsource are huge and there are many ways to use the expertise and experience of freelancers with specialist skills to work towards the result you want.
Delete all the costs that are not critical to the business and re-negotiate all contracts.
Rent is a big cost in any context – Asking for a ‘rent holiday’ could save your business.
Review your credit terms – the length of time you take to pay your suppliers, 30 days should be a minimum – it’s about time and cash.
You may have excess inventory that could be sold or you can liquidate some debtors through offering a discount for paying in a very short time frame – it’s not about losing money it’s about getting cash into the business.
grant funding – potentially free money because you fit the criteria of what a government wants to support, but it takes some time to apply and secure this type of funding.
Cash can be sourced from angel investors, family, friends and crowdfunding.
Often HMRC will agree to deferment – because ultimately they want their money but you must agree on an repayment schedule.
The cashflow forecast
You need to be looking at this at least weekly. You have to understand exactly where your cash is going on a finite and intricate level and you need to know in advance if you have to take massive action to get yourself above the red line.
‘They are key customers because you have been able to solve a problem for them’
‘Every business I go into I build some sort of referral program’
‘The reason I feel confident and congruent in scaling up any business is because I’ve been through the pain of turnaround’
ABOUT THE HOST
My name is Nick Bradley. I’m an entrepreneur, author, speaker and investor.
My background is in growing and scaling VC and Private Equity backed businesses.
Having successfully built, bought and sold a number of companies, and removed myself from day-to-day operations, my focus now is on helping entrepreneurs get to where they want to be, in business and in life. As well as investing in growth businesses and backing turnarounds - with the ultimate aim of creating value from significant capital events.
I’m passionate about personal and professional development - showing up and being the best version of myself ... every day.
My bigger vision is to help bring entrepreneurial skills, experience and mindset to people in developing nations - so they can follow their dreams, live life more on their terms - utilising entrepreneurship as a global force for good.