Four Essential Strategies to Avoid Company Liquidation
When a printing owner has got his back against the wall, it’s hard to pinpoint what to do to avoid company liquidation. It seems like so many things are going wrong that it’s hard to zero in on exactly what you need to do to right the ship.
To help you prioritize, I’ve listed four strategies that are the absolute essential places for you to start. Ignore all the other distractions and focus on these four, and I guarantee you’ll be on your way to avoiding a company meltdown:
- Pick the profitable sales over unprofitable sales. In tough times, you have a tendency to reach for anything that brings in revenue. But that can be a waste of your time and effort. Instead, review your balance sheet and financial statements, and focus on the true profit-drivers.
- Think about your weakest link. A chain is only as strong as your weakest link. Once you’ve pinpointed your profitable sales, then it’s time to analyze that chain, link by link. Is your sales force clicking? Do you have poor pricing? Poor buying? Low productivity? Look to shore up your weaknesses.
- Waste not, profit more. Take a close look at not only your financial statements, but also your processes. Is there anything that you can reduce or do more efficiently – something that may be having a cause-and-effect impact on your financial distress (inventory control is an example). Be careful with this: You don’t want to cut just for the sake of cutting. If it ties into growth, it may need to stay in place.
- Swallow your ego if you want to taste victory. This is the toughest strategy for any owner, but one that can ultimately yield the most results. Do you have the character, commitment and competency to lead your team back from the brink? Are you more interested in prestige over profit?
If you’re not committed to change and don’t feel it in your bones, then maybe you won’t have the belly to lead your team forth. If you think there are new technologies or techniques that are beyond your competency, consider expanding your team.
Want to taste victory? Then you’ll need to follow this strategy and swallow your ego.
These are absolutely the most important areas to start on your way back from company liquidation. And don’t consider any of the actions to be “downsizing.” They’re right-sizing, and they’re the best way to become successful once again.
(Photo by wallyg)
To read about mistakes to avoid when selling your printing business, download, Rock LaManna’s “12 Code Red Seller Mistakes.”
Rock LaManna provides executive coaching for printing owners looking to grow their printing business, merge with a synergistic partner, make a strategic acquisition, or create a succession plan.