We specialize in taking businesses out of crisis through focused and effective financial and management consulting.
Most people who set up a new business do not think that one day it may run into difficulties and collapse. But the numbers speak for themselves. By estimate, about 45 thousand new businesses open every year and 35 thousand close. One in three new businesses closes within 5 years. In other words, we need to prepare ourselves for the storm, because in most cases it arrives.
Reasons businesses close:
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Disorganized financial conduct
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No cash flow management
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No organized work processes
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Lack of management knowledge
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An unsuitable team of employees
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Wrong decision making
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Problematic pricing
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Slow response to market changes
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A wrong marketing mix
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Lack of forward planning
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No business vision, or a vision that does not fit reality
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And many more...
Some of the reasons above relate to the state of the market the business entered, from lack of competition to a small market with many players, and some simply relate to the economic situation: the Israeli market is not big enough to profit in, and so on.
If you identify your business's failure points early and fix them ahead of time, there is a good chance your business will survive.
What actions are recommended to restore your business to health?
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First of all, enlist all your employees in the recovery of the business. Make them feel they are part of it and that it is also for their benefit. For your part, lead by personal example. Cut your own salary, work extra hours. If you show commitment, your employees will too.
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After that, start checking the sources of the losses. Remember that "God is in the small details". Go through the business's expense items together with your accountant and trim the fat of the business, not the muscle, that is, everything that is not essential to day to day operations.
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Check the revenue structure and take immediate steps to increase it by repricing, creating new or different marketing differentiation, developing new markets and finding the business's "blue ocean".
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In day to day operations, redefine the business's core processes and form new procedures that will ensure proper, controlled execution of business activity and expose wasted resources. Also try to lower the business's overhead costs by reducing consumption and negotiating with suppliers.
If this does not help, it is time to contact bodies that help struggling businesses with financing. Many bodies give loans on very good terms to businesses in difficulty. What matters when you take loans is to know how to use them wisely and not waste money on things that will not return the investment. For example, if you take loans, prefer to use them to buy machines or various equipment, not to buy more cars for the business or to raise salaries. That is not what will get you out of the hard situation you have fallen into.
To clarify the last point, it is important to know that there are several ways to get help. The common and best way is through non-bank bodies. With them you will enjoy the best terms, starting with long term repayment schedules and convenient interest rates, and the option of raising up to about NIS 80 thousand, usually. In addition, not every business, certainly not a business in difficulty, can get loans from the banks.
Direct the loans you receive to things that really matter. Create a clear plan for how to use the money, so that it helps you bring money back in, while leaving part of it for investment or for other storms that may appear over time.
The more you keep your finger on the pulse, the better your chance of reaching the next storm prepared.
Finally, if your business is going through difficulties, do not wait until the last moment. Start dealing with the problems before it is too late. We would be glad to offer you business consulting that is focused and effective
and will help you get out of the crisis and flourish again.
The business consulting process starts with presenting the work process, getting to know the team of employees and their roles, analyzing reports and data, examining the market and competition, and looking for weak points that need to be strengthened immediately. It may take time, but we are convinced you will see results very quickly.
Interested in a meeting on financial consulting with one of our financial consultants? Leave your details and we will get back to you soon.
