With the economic crisis caused by Covid-19, many companies are going through a difficult, and even critical time,due to lack of revenue and the difficulties they are having to maintain their activity.
Faced with this situation, how to get a company out of the crisis is the most asked question by entrepreneurs,who after exhausting all possible alternatives, are desperately looking for solutions to obtain viability that allows them to get ahead and not have to lower the blind permanently.
Aware of the situation we are in, below at AYCE Laborytax we will tell you how to move forward with a company in crisis and get the viability you need.
How to get ahead of a company in crisis: Viability Plan & Restructuring
Faced with a crisis situation in which the company desperately seeks viability, making a Feasibility Plan and facing a restructuring of the company is key,in order to know under what conditions the business is viable, and to carry out a transformation of the company to make it more efficient and competitive in the market.
If you don’t know what to do with a company in crisis,take note because you’re interested in this.
Viability plan for a company in crisis
A feasibility plan is a document containing the general planning, evaluation and control lines of a company,which in the event of a crisis, will have to be submitted to creditors. It is vital to build trust and receive support in these times of such complicated crises.
Unlike when starting a business, a feasibility plan for a company in crisis has to pay special attention to the cash flows, collections and payments provided.
With the feasibility plan you will get information that will be key to finding solutions that allow you to leave the crisis behind.
How the feasibility plan helps get a company out of the crisis:
- Limit expenses.
- Increase sales.
- Reduce delinquency.
- Find new professionals trained to deal with this crisis situation.
- Detect errors and implement relevant changes to turn them into opportunities.
The feasibility plan will depend on the nature and situation in which eachcompany is located, as each will have different needs, and therefore there is no specific model or standardized script for developing a feasibility plan.
If you are not in a willingness to face it in your company, at AYCE Laborytax we can develop a feasibility plan for your company that helps you get ahead, through our consultants specialized in business feasibility plans.
How to restructure a company in crisis
Beyond the feasibility plan, in crisis management in a company, restructuring the company can be the difference between closing or moving forward.
Because in the face of a crisis situation, firing workers is not a long-term solution,but rather would be a way to lengthen this bad situation that the company is going through. When a company is in crisis, this situation is not solved by a few simple layoffs, as the problem goes much further.
The restructuring will allow you to adapt your company to the new needs,carrying out a new business model that will allow you to improve its operation and remain competitive.
If you don’t know how to restructurea company in crisis, at AYCE Laborytax we will help you put in place a business restructuring plan with which we will restore and guarantee the viability of your business in the most efficient way.
Tips for developing the feasibility plan of a company in crisis:
- Analysis of the company’s processes:
The first point is to analyze all the processes of the company,to check if they are really necessary for the performance of the activity and contribute something to the company, or if on the contrary they are only a source of expenses.
- Grouping of activities:
In order to eliminate duplication and get rid of those that do not contribute anything, it is necessary to group the activities of the company. The existence of duplication of activities within a company is very common, mainly because of a problem of lack of communication or because no one has stopped to think about it, with the economic cost that this entails.
- Choose department leaders:
During the restructuring you also have to choose workers trained to lead the departments of the company, who can give the rest of the team the motivation you need.
- Do without those profiles not necessary:
In case you are obliged to lay off workers, you must do without those profiles that are notnecessary or that less value contribute, and do not get carried away by those workers who have the highest wages.
- Search for alternatives to increase sales:
Finally, we need to look for new ways to increase the company’ssales, as in most cases it is not enough to reduce costs to achieve the necessary viability.
In short, if you’re going through a complicated situation and don’t know how to get a company out of the crisis, the feasibility plan and restructuring are key to adapting your business model to new needs.
The feasibility plan will help you understand when your business is located, while restructuring will allow you to cope with the changes needed to get ahead.
If your business is in crisis and you need solutions, contact AYCE Laborytax without obligation. We’ll help you get your company going.
You are interested in:
Tips for doing a feasibility study and checking if a business idea is feasible.
How to proceed to the restructuring of the family business on the right track.