Utah State

Section 2

Recovery Team

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Team Members

Outside Team Members (Excel)

Inside Team Members (Excel)

If you have made it this far, there must be hope for your business.

As I have stated many times now, the most important thing you should be doing is controlling cash. Doing everything you can to bring it in and stop it from going out.

This section covers the second most important part of what you must do and that is to create a team that can turn things around. There's only one person to blame for the trouble you are having. The first thing to do if it's possible, as hard as it seems, is to remove the Manager. That person is the one that got your business to this point. It's not just the economy or other outside forces. A good manager will plan for those possible, even probable, events.

If you are the Owner/Manager, you may be better off to hire a professional and step aside. If you are the Owner/Manager and just can't get out, remember that you need to play to other people's strengths, rely on those people and follow their advice. It's time to make changes. If you don't or can't change you should sell out now and walk away.

Outside Partners

First let's look at partners outside of the business. You are already a client of the Utah Small Business Development Centers. The SBDC is a nationally recognized source for business assistance. Here are some others...

SCORE, The Service Corps of Retired Executives

The Women's Business Center

These entities are also sponsored by the U.S. Small Business Administration.

You should keep your attorney apprised of your situation as well as your CPA.

Your loan officer should be a part of your team. They want to see you succeed as much or more than anyone else.

Assignment: Use the Outside Partners sheet in the right hand column to list those members of your team.

Assignment: Go to your loan officer. Show them how you calculated your business closing date. Discuss options regarding renegotiating credit terms. Let them know in no uncertain terms that you intend to make the business work and repay them but you are starting this program and need some assistance.

Inside Partners

Employees are the first and most important asset of your business however, some of them had to go in the initial rounds of cost cutting. Now it may be time for more to go.

Layoffs

If you have to lay people off, do it wisely. Keep and transfer good performers to new positions when you layoff a large number of poor performers. Never simply make a 10% cut (for example) across the board. You will lose good people and be stuck with bad ones.

Now, you have your core. These should be the best and brightest.

Assignment: Use the Inside Partners sheet in the right hand column to list those members of your team.

Company Meeting

Call a company meeting. Even if the only people left are you, your spouse and your kids. Hopefully, it hasn't got that bad but, if it has, you still need to look death in the face.

In this meeting, you want to do a number of things.

 

Assignment: Draw up a detailed agenda of your upcoming company meeting.

Assignment: Send all previous assignments in this Section to your counselor for review and suggestions.