In part one of this article we explored the four stages of turnaround involved in saving a failing business, including the objectives and actions necessary in each stage. These are the mechanics involved in bringing a business back to solvency and setting it up for sustained profitability in the future. Most of the information is easy to identify with; even common sense, if you will.
The not-so-obvious elements of a turnaround involve changing existing beliefs and behaviors, which can be broken down into three core areas: financial sacrifice, hard work, and leadership. The complexity in these areas centers around altering behaviors which, most likely, put the business in its current position. Changing these behaviors is not easy, especially since it starts with the owner. As an entrepreneur who embraced the positive elements of all three areas to get the business started, the owner can relate to the pain associated with each area as well. And the last thing an owner wants to hear is that they must go through the journey all over again. The silver lining in this is that they can do it, because they did it before, so success in the turnaround is likely if the commitment is made.