How to Turn a Business Around
It's no easy task to turn around business. You have taken a very important first step to making this a reality. It will take a lot of work, but if you follow and implement the 9 steps below you will be successful. Let's take a look:
9 Key Steps to a Successful Turn Around
Step 1: Strategy Development & Research
The first step to successfully implementing a turn around is to develop a strategy and conduct thorough research of the topic at hand. Having a detailed strategy that outlines the approach you are going to take to achieve your goals can give you a competitive advantage. Approaching your chosen method with a plan that has been systematically researched and defined is important.
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The next steps are the components required to complete your first draft business plan.
Step 2: Financial Plan
Having a financial plan that estimates sales, cost of goods, gross profits, expenses, net profit, assets required, liabilities required (such as debt), etcetera, is another important step. You must also have a detailed budget that covers the next one to three years of operation. Applying this financial approach will allow you to focus on what is important.
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Step 3: Team Development
Team development consists of several features. One important aspect of team development is to ensure that all of your employees are highly knowledgeable in each of the responsibilities that they are expected to perform. This should include a strategic thinker, sales and marketing expert and an ace technologist in the industry. Another key piece of team development is to conduct team meetings for those employees that are involved on common projects/goals. This helps to build camaraderie amongst employees from different areas of the business that may not have a lot of opportunities to get to know each other outside of the team development meetings.
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Step 4: Marketing Plan
Having a strong marketing plan and following it is extremely important in achieving your growth goals. In order to be successful, you must match your products and services with the best growing industry segments or market niches. This can be accomplished by developing a method to reach prospective customers such as: market research, competitive research, product research, lead generation, pricing, sales, public relations, Internet and more.
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Step 5: Operating Plan
A comprehensive operating plan is comprised of multiple effective processes. Your operating plan must include such things as capacity planning, work schedules, product and service profit analysis, input and output levels, specifications, design, machinery and equipment, recruiting and training and project management. Develop a product or service prototype. Don’t confuse your prototype with your final product. Your prototypes are a working demonstration that shows what the new idea will do: debug and perfect your idea.
Project management is an important aspect of the operating plan because the way in which a project is managed can make or break the success of it. If the project manager is thorough across the board when it comes to ensuring the quality of his team’s work and their ability to stay on schedule and within budget; the project manager will be successful.
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Step 6: Management Plan
An all-inclusive management plan is something that is difficult to accomplish, but not impossible. The most important point to remember when creating a management plan is to pay attention to the details. Some key aspects of a comprehensive management plan are detailed job descriptions, having an organization chart and doing employee mentoring. You must also have detailed one-, two- and three-year plans for both yourself and your business. Without leadership and enforcement, no business will last for long.
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Step 7: Deployment
When deploying a new strategy, growth or otherwise, it is always important to have an itemized schedule and enough meetings to keep critical information out there; whether they be project meetings, in-the-field meetings or sales meetings. You must also be able to delegate tasks to others with the knowledge that they will meet their deadlines and goals on schedule with minimal follow up. See step six.
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Step 8: Recruiting & Hiring
When finding and choosing new employees, it is important to have a comprehensive screening process in place so that you ensure that the person you choose will fit into your organization well; which in turn helps increase the success of your employees overall. When looking for new employees it is important to identify where your prospective employees are and then design ads that can be placed in the newspaper, on television or on the Internet and then have a method to obtain the resumes in a confidential manner.
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Step 9: Revisit the Business Plan
Translate all that you’ve learned into a better plan. You may be focused on the wrong market, or the wrong product. Here it is critical to compare budgeted vs. actual or planned vs. actual. The variance in each category is where you look to refine your plan. Developing a plan is not a one time function. Repeating the 9 steps is required if you are going to maintain your steady progress toward maintaining all of the work you put into turning your business around.
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