Adrian Kirby: Tips to Turn Around Struggling Businesses

LONDON, July 29, 2010 - Adrian Kirby (www.adriankirby.com/) is one of the UK's leading
entrepreneurs with a passion for property, the environment and investment.

In recent years Adrian (www.adriankirby.com/) has thrown his hat
into the private equity sector, with a proven track record in helping
struggling businesses turn around their fortunes - investing both his time
and investor capital into various ventures.

After what seems like an age of stark recessional gloom, and with
economic recovery now being set into motion, many UK businesses are beginning
to look to the future. Those who have struggled through the hardest times are
now getting back on their feet, some being bought out of administration,
others once again looking to build upon their business after years of anxious
caution. But what can you do for a business to ensure a true turnaround in
fortune?

For me, there are several things a business owner needs to do right away,
before any kind of turnaround can be made possible. Here are my top tips to
revitalise a business.

Understand your strengths and weaknesses

Firstly, the initial priority is to really understand the state of your
business as it sits today. I would then seek to interpret your business'
strengths and weaknesses into what the imperatives are for both the short and
long term. Once you understand the areas in which your organization needs to
improve, it will be much easier to ascertain the day-to-day measures that
must be put in place, in order to actualize these changes.

The biggest challenge is often getting the right management in place, so
that the rest almost takes care of itself. You can focus on getting the right
sales strategy and the right distribution strategy, but fundamentally it
comes down to getting the right people doing the right things.

Write a business plan

The benefits of writing up a detailed and feasible business plan are
huge; it will provide a reference, against which actual results can be
measured and evaluated. It will also provide an indication to third parties
that the proposed plan of action has been carefully evaluated and is a viable
proposition that should be supported.

Throughout the business turnaround process, results should be regularly
measured against your plan, and if necessary corrective actions should be
taken. Key performance indicators (KPIs) should be determined that will give
an idea of the business performance and should be analysed on a weekly or
monthly basis. The KPIs should reflect the important aspects of the business
outlined in your plan, which will determine success or failure.

Communicate with managers, employees and financiers

Never be afraid to admit and confront your commercial mistakes and also
be prepared to communicate your plans with investors, staff and relevant
stakeholders.

When talking to staff it is important to gauge the concerns of the group
and address them as positively and directly as possible. The current business
situation should be explained and the consequences of not making these
changes should be emphasised. These employees will be critical to the success
of the turnaround, as they will be performing the planned action and
delivering the results.

Always ensure that stakeholders are told the truth of your position…
neither financing institutions or investors forgive unpleasant surprises and
it is essential to maintain credibility.

The bank and any other party with a financial investment in the business
should be advised of the change in plans. If possible meetings should be
arranged to discuss the plans and to seek promises of continued support. If
you are in debt, contact creditors and organize a payment plan. Remember,
when faced with a mountain of bills always pay your employee's salaries
first.

These points are the first steps you should take in turning your business
around. Provided sound management principles are employed, results are
measured and positive trends are reported, good control of your business
should be regained. However, it must be considered that when it comes to
business, there is no such thing as a 'quick fix'. You might be able to dress
your business up in the short term, but in reality if you're going to truly
turn a business' fortunes around it will most likely take at least 12 months,
perhaps longer.

With this in mind, be prepared for a long road of hard work! The lessons
learned during the turnaround process should be taken on board to avoid a
repetition of previous mistakes. Aside from this, I would advise any
potential reviver of a business to relentlessly focus on the day-to-day
detail, in order to maintain control and deliver on your promises.

Adrian Kirby has a website www.adriankirby.com

Contact: David Brookes - +44(02)07-0251-360