Business Turnaround podcast

When a business starts struggling, there’s often a rush to hire consultants, spend money on reports, or brainstorm high-level strategies in a room full of executives. And don’t get me wrong - those things can help. But too often, the people who really know what’s going wrong are the ones who are never invited to those meetings - the forklift driver, the machine operator, the warehouse supervisor, the customer service rep who deals with client complaints all day long. 

When companies are in trouble, merging with another business often seems like a quick fix—a way to scale, cut costs, or breathe new life into operations. But here’s the hard truth: most mergers between private companies don’t work out. Instead of solving problems, they compound them. And if you’re not careful, what you thought was a lifeline can end up being an anchor.

In an ideal world, every struggling company would have a team of top-tier managers and high-performing employees ready to execute a turnaround plan. But that’s rarely the case. When a company is in trouble, instability makes it difficult to attract top talent. Often, you’re working with the same team that got the business into trouble in the first place—or a team that’s already demoralized and skeptical about the future.

A business turnaround isn’t just about fixing problems—it’s about reframing them into opportunities for growth, innovation, and transformation. Think about two business owners facing the same challenge. One sees declining sales as a sign that the business is failing. The other sees it as a sign that the market has changed and that there’s an opportunity to pivot, adapt, and improve.

When a company is struggling, strong management skills alone won’t be enough to save it. Yes, you need systems, processes, and accountability. But turnarounds don’t happen because someone made better spreadsheets or improved reporting. Turnarounds happen because of leadership. And leadership is not about being liked. It’s about being understood, respected, and effective enough to make the tough calls and steer the business out of crisis.

When a business is in trouble, it’s easy to get caught up in everything that’s wrong. The cash flow issues, the declining sales, the debt piling up. But here’s the hard truth—focusing on problems won’t fix them. What separates those who successfully turn businesses around from those who don’t is a shift in mindset: moving from problem-focused thinking to solution-driven action.

At the heart of every company’s success lies its profit core. Think of it as the engine that keeps your business moving forward, even in challenging times. It’s not just about where you make money, but how you make it—and how you can keep that engine running efficiently and consistently.

When a business faces challenges, cash becomes king. In fact, it’s not just a cliché—it’s reality. Cash flow isn’t just another metric to glance at once a month; it’s the lifeblood that determines how long your company can weather storms, make changes, and emerge stronger on the other side. That’s why understanding and calculating your cash runway is one of the most important steps in any turnaround.

Running a business comes with a constant balancing act: you’re always weighing costs, managing resources, and trying to keep growth on track. But what happens when the tide turns—when revenue dips, margins shrink, and cash flow becomes a trickle? That’s when the tough decisions come into play. It’s not easy, but finding where to cut isn’t about simply slashing expenses indiscriminately. It’s a disciplined, strategic process that lays the foundation for recovery and future success. 

No company is immune to trouble. Whether you’re running a blue-collar SME or managing a larger enterprise, the first sign of distress is often liquidity issues—not enough cash to cover your bills. This is the moment when decisive action is needed, and as a turnaround expert, I’ve seen firsthand how these four steps can help steady the ship.