FEATURE | Business Recovery
Seven steps for
REcOvERY
++++++++++++++
Recession-proof your
business with NEIL HUGHES’
seven simple steps.
++++++++++++++
THE RECESSION IN IRELAND is taking
a heavy toll on small- and medium-sized enterprises (SMEs) in Ireland. Recessionary symptoms of falling sales, tightened margins and evaporated credit have been too much to absorb for many sectors. Many business owners and managers, besieged and on the back foot, are seeing their trade contract and are struggling to survive. In this environment, it is all too easy for fatal mistakes to be made and important escape routes to be overlooked. When trading through tough times, those that are best prepared are more likely to outrun their competitors in the recession footrace. The seven Cs of business recovery aims to present a roadmap for beleaguered owners and managers to not only beat the competition and the immediate financial crisis in their business, but also to streamline, invigorate and remould a business plan to ride the inevitable upsurge and prepare for resurgence and renewed growth. Any business (even one in crisis) that operates within a correct framework can adapt to the challenges presented by this recession and emerge stronger than before. The seven Cs provides such a framework: seven principles of business resurgence that individually and collectively contribute to the prospects for an enterprise’s survival. For the business owner looking out their front door at a bleak economic landscape, this is a ‘safe cross code’ to get your business to the other side of the recession. But firstly, if you are confronted with a financial crisis, don’t panic. Although it’s a natural reaction, if you start to panic then the people working with you will likely panic too. Remain calm. If you don’t, your staff, your bank
58 InBusiness May 10
and your creditors will lose faith in you. In fact, you will soon end up losing faith in yourself. Work your way through the seven Cs with a clear head.
THE SEVEN CS OF BUSINESS RECOVERY ARE:
1. Counsel – At an early stage, it is vital that you seek counsel and take advice. A director, owner or manager at the helm of an insolvent business or the head of a struggling household can find themselves in a pressure cooker environment. When the wolves are at the door, it can be nearly impossible to make correct decisions. It is vital that somebody with fresh eyes looks at the business or household circumstances from an independent and
“aNy busiNess
that does Not
coNtiNually
iNNovate is doomed
to fail. do thiNgs
better by doiNg
them differeNtly.”
dispassionate perspective to assist you in drawing up the best recovery plan possible.
2. Communication – In essence, the business struggling to meet financial commitments must endeavour to deal with their lenders and creditors as openly and honestly as possible. You will be amazed at the goodwill that such a policy can generate. The ability to effectively
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