The big idea
Every business is, at some time, likely to face some form of difficulty. The causes may be internal or external and the symptoms will vary; each business will face its own unique combination. There is a range of options available during such a period but the key is to catch things as early as possible.
The purpose of this tool is to identify the stages of business decline and recovery so you can recognise them and have a sense of what to expect if your business struggles during the current economic downturn. This tool should be used in conjunction with other tools in the kit – particularly ‘brutal questions’ and ‘warning signs’. There are a number of models for decline and recovery but most agree that there will be a period of underperformance, a need for some form of assessment and then a strategy for turnaround and renewal. This tool is based on a five-stage process from hidden crisis to renewal.
The tool takes you through a series of questions and statements to help you examine your business for any evidence of trouble, but don’t let that put you off! It also gives guidance on the characteristics needed for strong renewal. You can answer the questions relatively quickly on your own or with your team if you have one. Depending on what you find, you may then need to spend some time on action planning.