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· Closing your Books faster - doing a Fast Close
· Leadership - A new style of supervision?
· Security Ideas for Web-Based Software
· Internet- and Email-Rules
· Abridgement - General Overview
· Scientific Advertising (by Claude C. Hopkins)
· How Small and Medium Sized Businesses could benefit from Performance Management
· Performance Management - One Size fits all!?
Business Analysis
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Crisis: Signs of crisis and actions to be taken to overcome a business crisis
Page: 4/5
the company equity will have consumed by losses in the near future
the indebtedness stands in no relation to the profit strength (interest and erasures can be no more performed)
payables could only been paid under big difficulties (Attention: insolvency is a bankruptcy reason)
deficits in the accountancy (too high fixed costs, no taut accounts receivables management, no overview about the financial situation, wrong calculation bases, and other)
not fully used capacities (outdated production plants, overdue efficiency measures, too many machines / staff, and other)
human resources (defective employee's qualifications partially also with persons in leading positions, high fluctuation, etc)
no concrete marketing concept (target groups not defined, trends not notable, etc)
Page: 4/5
Further signs for an already occurring or arising crisis are:
Nevertheless, a business don’t have to run badly to get into a crisis. Just also at very fast growing enterprises the danger of a crisis is big. Thus the operational organization and the necessary capacities must grow in phases of the strong growth. Nevertheless, this presents itself as the biggest problem, because a capacity planning and capacity extension on the basis of rapidly changing figures is a problem. Overcapacities are built up fast which become visible only then when the growth is suddenly lower.
There are always phases of consolidation, these should be used to analyze possible false developments and to initiate suitable countermeasures. Then you have to review the past and only then you could plan the future.
4. Measures in the crisis
Search for somebody, to assist you with your accountancy and Controlling, who is able to adapt your controlling and delivers the really important data to you. Speak early with your bank as well as with bigger suppliers and explain your position, the earlier the better. In most cases the crisis could be overcome by openness to all involved parties.
Use all alternatives to get capital into your business, but don't sell yourself. Thus you could use, e.g., Factoring. But it would be better to improve your accounts receivables management to collect receivables faster. Nevertheless, Factoring is a way if you urgently need money. If you are in an overdraft position with your bank accounts, you my ask to refinance it into a in long-term loan, this will lower your interest expenditures.
Perhaps, you have the possibility to gain capital from government grants, so that you could continue working with your company. However, you should not count on the possibility to receive government grants, your business might not be eligible. Tighten the operational organization (order processing, customer care, etc).
Importantly that you keep an eye on the solvency of your company. Only at the 2nd step the ability of competitiveness is important. When you have secured these both conditions for the survival of your business, you could go to the 3rd step, the expansion or the gain of higher yields.
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