Turn Around Alternatives for Your Firm

When your business is in trouble, you have 3 turn around choices. These are 1) declare bankruptcy 2) hire a turn around consultant or 3) turn around the firm yourself.

Let’s look at each one of these choices:

Chapter 11 bankruptcy, frankly, is not a good alternative for most troubled small and medium sized firms. Why? The attorney fees are high with $100,000 being commonplace. Most firms just cannot afford the fee. That is why judges convert most Chapter 11 cases into Chapter 7 shutdown bankruptcies. It becomes clear to the judge, the owners, the creditors and the lawyers that the firm will not survive the bankruptcy procedure.

The second alternative is to hire a consultant. This can be a good turn around method for your firm if you can afford the fee. Typically, a turn around practitioner charges $200 to $500 an hour. While this seems steep, it is equal to most CEO salaries.

A consultant is usually the best chance for your business to survive if you do not have business restructuring experience. The Turnaround Management Association has a list of good consultants if you decide to use this alternative.

The final alternative is for you to get some restructuring knowledge and fix the company yourself. Most business leaders have the management skills needed to fix their firms but they don’t have the turn around experience. A great source for this information is The Insider Secrets to Saving Your Business by Dan Betts, CEO of Turnaround Central.

In this book (actually two volumes), you will learn all of the tips and secrets of a master in this field. He shows you how to get control of your costs, how to talk to your banker, how to sell the firm, and how to get financing. This only scratches the surface of what is in this training manual.

We recommend Insider Secrets to anyone needing to fix their businesses. By special arrangement, we are able to offer you 7 restructuring tips from the Insider Secrets guide. Click turn around information to get the complementary tips.

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