The decline of a business is characterised by falling sales, falling profits,
cash-flow problems, pressure from Financial Institutions, and the fact that
it is becoming increasing difficult to meet your everyday financial obligations.
This is a stressful period for all involved in the business.
Diversification is very difficult at this stage of the cycle, and it is also harder to raise new capital at this point.
But it is possible to overcome these problems.
Alan can provide assistance in the following areas:
- Professional advice when talking with the Bank
- Cash Flow Projections
- Debt Control management
- Re-examining Marketing Strategy
- Why are sales declining? Has your product or service reached the end of its useful life?
- Why are profits declining? Have your fixed costs increased?
- Should you consider a Sale/Leaseback of your premises in order to raise capital?
- Human resources (staffing). It is difficult to keep staff - and your best staff are the first to go in this situation.
- Should you consider liquidation/receivership? This can be a successful strategy, but you should certainly take expert advice if you are going to take this route.
Previous Stage: Business Maturity