Business Turnaround First 100 Day Priorities – Turnaround Quick Hit
1. Stop Hemorrhaging Cash: In a business turnaround, it is critical to stop the flow of cash out of the company as quickly as possible. This involves reviewing all expenses, identifying areas where cuts can be made, and implementing measures to reduce or eliminate unnecessary spending. This step is important because it helps to stabilize the company's finances and provide a foundation for future growth.
2. Be Profitable - Generate Positive EBITDA: The second priority is to focus on generating positive earnings before interest, taxes, depreciation, and amortization (EBITDA). This involves identifying and prioritizing revenue-generating initiatives, as well as implementing cost-saving measures. Achieving positive EBITDA is a key milestone in the turnaround process because it demonstrates that the company is on a path to financial stability.
3. Key Customer Strategy: The third priority is to develop a strategy for key customers. This involves understanding the needs and preferences of the company's most valuable customers and developing a plan to meet those needs. This step is critical because it helps to ensure that the company is providing value to its customers and building long-term relationships.
4. Right-size and Align Around Product: The fourth priority is to right-size and align the company's operations around its products. This involves reviewing the company's product offerings, identifying areas where improvements can be made, and realigning resources to support the products that have the greatest potential for success. This step is important because it helps to ensure that the company is maximizing its opportunities for growth.
5. Develop Immediate Near-Term Strategy: The fifth priority is to develop a near-term strategy that addresses the five pillars of a successful business: growth, high customer satisfaction, product and service, operational excellence, and human capital. This involves identifying the most pressing challenges and opportunities, developing a plan to address them, and setting priorities for immediate action. This step is critical because it helps to ensure that the company is on a path to long-term success.