Most companies will go through a period of difficulty at one stage or another, so if you’re unfortunate enough to see a prolonged slump in sales or struggle due to market influences, you may have to consider some form of corporate recovery.
Corporate recovery options can help businesses, directors and shareholders to overcome whatever difficulties they’re experiencing.
In addition, corporate recovery will often incorporate a debt restructuring plan for those that need it, allowing for stable growth and recovery in the future. The request for corporate recovery is best made as soon as there are signs that the company is struggling, as the likelihood of keeping the business afloat is much more likely when tackled as soon as possible. Businesses so often ignore corporate recovery options until court orders and pressure from creditors forces the decision to be made.
Planning for Corporate Recovery
When disaster strikes and you’re trying to guide your company back to success, the best way to corporate recovery is by developing a business recovery plan.
When creating your business recovery plan, you’ll need to include the following:
- Identify the key areas of your business. You should clearly identify the key areas of your business that your company relies on. Which departments are fundamental to your business and which are not so important? What do your essential departments need to keep running and what can be deemed surplus to requirements.
- Identify important equipment. You should make a list of equipment that you consider necessary for your company to function correctly. Some equipment that is rarely used could be sold and leased when it is needed and some equipment could be sold if rarely used at all. Can you rent a part of your business property to another company? This will help you to realise the minimum financial level at which your business can operate.
- Form an action plan. A list of necessities for your business to remain sustainable and a budget for your minimum operating level will allow you to put together an action plan. Ensure that you list each task for each department, with the items required.
- Designate responsibility. If you’re a small business owner, you’ll probably have to take control of the entire business recovery plan. If you have business partners, you should designate duties and responsibilities to concentrate on different areas of the business. A more organised approach will boost the recovery.
- Review on a regular basis. Make sure your business recovery plan is reviewed on a regular basis as your business and market forces will be constantly changing.