Revitalizing a business with flat or declining sales and profits is a turnaround, yet the two words often mean different things to different people. Granted, there is significant difference between flat sales and profit versus declining ones, but each requires crafting a smart strategic turnaround plan with a strong revitalization element.
Turnaround literally means to go back in the direction you came from. Those who have ventured down an ‘alley’ that turned out to be a dead end have a special appreciation for ‘doing a 180’, but that misses part of the core element of turning a losing proposition into a winner.
Turnaround plans work when an entrepreneur understands “the why” and is willing to implement smart change in the business after completing an unbiased comprehensive review of it and its market.
Several questions help start this process.
When did the slide begin? What caused the slide into stagnancy or worse? Has the company’s market changed?
Have new technology and a changing demographic affected the company? How so? Have they affected competitors as well? Is anyone in the company’s market growing? If so, how are they doing this?
Must a turnaround plan have a revitalization component? A turnaround could be as fundamental as implementing a few smart changes in process and substance, including:
- Obtaining new and different products
- Finding new suppliers with more favorable pricing
- Revamping the sales and customer experience process
- Building a better customer database and way to communicate with customers
- Launching a new branding, marketing, and communication campaign
- Investing in targeted marketing, more website on-page optimization, and more SEO
As an example, if your restaurant sales and profit are declining, a turnaround starts with determining four key elements to pinpoint cause:
- Quality and consistency of food
- Reputation and market positioning
- Customer process and customer demographics
- Change and trend analysis
An internal review of the business could look like this:
- Look at each part of the customer experience, starting with the quality and consistency of your food
- Analyze customer demographics and how you communicate with customers
- Assess the effectiveness of customer service and wait staff training
- Measure the results of current advertising, marketing, and media
- Assess the customer digital experience
- Consider a new component like catering, private parties, or tie-in promotions
- Consider new entrees and specials
- Consider new wines, beers, and spirits based on customer requests and market data
- Consider a new menu
- Define what optimum positioning looks like in your market
Each turnaround is unique. All markets evolve and change in real time based on a dynamic of competitors, changing demographics, technological change, and innovation.
Knowing how to recognize change and determine how it affects your business is crucial. Completing a detailed unbiased analysis will enable you to create a comprehensive plan to take advantage of that change.
This skill-set separates industry leaders from the rest.
So, is it revitalization or a turnaround? It is both because a successful turnaround always contains a strong dose of revitalization.
We do this whether you aim to grow or want to position your business for a favorable sale.
See what ‘Jack’ can do for you!!
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