Accountants, Corporate Attorney’s, Consultants, and other business professionals will learn how to use the Business Performance Analysis Engine to pinpoint SMB client weaknesses and how to convert those opportunities into additional billable hours and new consulting revenue.We’re going to show you how to:
   – compare your client’s business operating performance against other companies in their industry, worldwide;
   – identify the specific business challenges each of your clients is struggling with;
   – convert each client’s challenges into additional revenue opportunities (i.e. more billable hours);
   – project more credibility and expertise with your clients by having a complete set of holistic & comprehensive set of diagnostic data and management metrics;
   – get access to SMB operating performance data available no where else.This webinar features actual case studies and a complete introduction  to the Business Performance Analysis Engine (BPAE) from Mentoring Success Group LLC.
  
Register for a session now by clicking on this link: Webinar Information 
 
Once registered you will receive an email confirming your registration
with information you need to join the Webinar.
 
System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server
 
Macintosh®-based attendees
Required: Mac OS® X 10.4.11 (Tiger®) or newer

You know your business is in trouble when…you anticipate each phone call is more likely to be a creditor than a customer; you’re walking around completely stressed out, with a knot of fear in your stomach; when you find yourself in complete denial about your current situation.

My past experience is that many entrepreneurs and small business owners are generally very good at their personal core competency, like designing and manufacturing a world class blue widget for example. But when other parts of their business, such as cash flow, human resources, sales and marketing, areas where they have limited prior experience, begin slipping out of control, most small business owners respond by going into denial. Somehow, magically, things will turn around next week, next month….and so on.

If your business is struggling for survival right now, and who isn’t, here are five action steps to help you get your ship of commerce pointed back in the right direction.

Assess your situation candidly.

You absolutely have to be realistic – stop living in denial. Things won’t get better until you take immediate positive action. Quickly identify a short list of root causes then keep asking questions – drilling down, until you have developed a list of specific action items to turn your business around.

• • • lack of sales – why? What happened? What changed?

    • Decreased profit margins – have costs increased? Sales dropped off?

    • Cash flow issues? Can you afford your current customers, or do you need new ones that pay their bills on time? Can your current customers begin paying you earlier?

    • Poor service/product quality? Have your previous cutbacks hurt your business? Have refund requests increased lately? Why?

    • People problems – decide now if you are in business to operate a ‘non-profit’ social services organization or if you are in business to make a profit; people either clearly demonstrate a tangible contribute to the overall solution, or they need to be working elsewhere – NOW!!

Let’s face it. You can’t solve your critical problems, unless you know what they are. Get information, then make the appropriate decisions.

Calculate your finances literally to the penny.

Make an itemized list of your fixed monthly expenses. Calculate the absolute minimum that it costs each month to stay in business, to keep the doors open, and the lights on. List everything like…

• • • rent

    • electric

    • telephone / communications;

    • other fixed expenses that you are obligated to, or required;

This list should identify the expense, the amount incurred each month, the payment due date, and the amount that is currently past due.

Identify any item on this list that you can renegotiate for lower fees and costs or even to defer certain expenses such as your rent. Explain your situation to your landlord, and show them how they can help you during the next 6 months, in exchange for extending the lease, and/or increased payments later on.

Pay only these priority bills first before any other expenses. Develop a realistic plan to avoid falling any further behind on these expenses, and to begin bringing these obligations current. Let’s face it, you identified these expenses as those required to stay in business. Consequently if you divert these payments elsewhere, guess what happens.

Carefully manage your outgoing cash payments. If it isn’t one of your ‘required’ payments, slow down the payments. If you have been paying your bills in 30 days, begin paying on a 45 day. Hoard your cash with religious fervor.

What’s your monthly breakeven? Are you consistently generating enough sales / profit margin to pass your monthly breakeven? If not, make the adjustments as soon as possible.

Plan for your financial recovery. You aren’t in business merely to recover from a financial setback. Plan for success, not merely survival. If your sales and profit margin are consistently passing your improved monthly breakeven point, then your projected profit identifies how quickly you can catch up on your overdue obligations. For example if your past due obligations is equal to $20,000, and you plan to generate a monthly profit of $2000, it will require ten months to pull back even again.

What do other people owe you?

You need to immediately age your receivables (assuming you have receivables). Review your credit terms. If you grant 30 days credit to your customers, begin tracking your payment status at 20 days out. This is your money; go get it – RIGHT NOW!! Better yet, offer a prompt payment discount AND ASK FOR QUICK PAYMENT!!

This may seem counter-intuitive, but stop doing business with customers that give you a hard time about paying their bills to you. DO NOT TAKE THEIR ORDER. You can’t afford to. If your clients are stretching your payments out 60, 90, or even 120 days, and yet your vendors are expecting to be paid in 30…well, you need to make a fundamental decision about whether you are in the business of financing your customer’s business, or if they should find another source of working capital.

It’s quite likely you’re in financial trouble because clients have slowed down their payments, causing a disruption in your cash flow. You can’t allow this trend to continue and stay in business. You won’t solve your cash-flow issues by perpetuating them with poor, financially weak clients.

Communicate regularly

It’s absolutely imperative for you to communicate with everyone that is impacted by your business. This would include your advisors (attorney, accountant or financial advisor), your creditors, and your bankers or lenders.

There are two crucial concepts when it comes to communicating with your advisors and creditors; honesty and credibility. Remember, if you don’t communicate, and you lack honesty and credibility about your efforts to turn things around, these people will develop their own plans to deal with your situation, and they won’t be soliciting your input. Do not develop a ‘bunker’ mentality and go into hiding.

Pay those taxes.

If you are located in the US, be absolutely positively certain that your payroll taxes are paid. The US federal government has absolutely no sense of humor about payroll withholding taxes that aren’t paid. They can, and will walk through the front door and shut your operation down without notice, changing the locks on the door.

Once your business assets have been siezed, there is no further need to spend any effort trying to save your business; its done and over with at this point. The only thing left to do is to hold the funeral.

Even if your business is legally incorporated, they will still come after you personally. Your home and your family’s assets are at complete risk. Not paying this obligation nothing more than a very, very bad idea.

Summary

The single most important piece of advice is that in order to survive, you have to stop ignoring the warning signs. Don’t live in denial or ignorant bliss. If you and your business are in trouble, TAKE ACTION!! NOW, not later.

Get the information you need to make intelligent decisions. You might not be an expert at human resources, or marketing problems. But if you keep asking questions you will get to a point where the decisions you need to make will become obvious to you.

I’ve just skimmed the surface of a strategy for managing a business in trouble. If you need some hand-holding, a listening ear, have a question or you’d like some preliminary advice, you can write to me at tomt@MentoringSuccessGroup.com

About the author

Tom Tubergen is the President and CEO of Mentoring Success Group LLC based in Detroit, MI. His company operates an online software application assisting successful entrepreneurs and small business owners worldwide to carefully monitor every part of their business operation. The sophisticated monthly analysis monitors everything from design engineering, finances, personal leadership, sales and marketing and 19 other aspects of running a successful business. Visit www.MentoringSuccessGroup.com for more information.