Can a Business Do the Hokey Pokey?

Is it possible to turn a business around that is going in an unwanted direction?

Yes, it is.

Is it possible to do that in three months?

Yup.

You’ll need to do just two things during those first three months to go from a negative to a positive cash flow position: stabilize and restructure.

How do you stabilize?

1. create a cash flow projection so that you are very clear about what your actual cash position is now and for the next 9 months,
2. bring the books up to date,
3. reach out to past-due vendors and negotiate new payment terms,
4. reach out to late-paying customers and collect the money,
5. reach out to outside sources of cash, such as banks, friends and family, and other investors for infusions of cash.

How do you restructure?

6. evaluate the profitability of each revenue generating product and service,
7. strategize how to increase the profitability of each product and service, thereby increasing Gross Profit,
8. strategize how to up the overall profitability of the company thereby increasing Net Operating Profit,
9. implement those strategizes with systems and procedures.