A Free-Reprint Article Written by: Thayne Carper Article Title: Business Turnaround: Reorganize Your Company and Focus on Its Profitable Areas
See TERMS OF REPRINT to the end of the article. Article Description: After you have determined the root cause of your company's problems, you must now reorganize to make your company profitable. All companies have strengths and weaknesses, and it would be wise to recognize which areas are assets to you and which need improvement. Additional Article Information: =============================== 539 Words; formatted to 65 Characters per Line Distribution Date and Time: 2010-02-25 10:00:00 Written By: Thayne Carper Copyright: 2010 Contact Email: mailto:[email protected] For more free-reprint articles by Thayne Carper, please visit: http://www.thePhantomWriters.com/recent/author/thayne-carper.html ============================================= Special Notice For Publishers and Webmasters: ============================================= HTML Copy-and-Paste and TEXT Copy-and-Paste Versions Of Article Are Available at: http://thePhantomWriters.com/free_content/db/c/business-turnaround-reorganization.shtml#get_code --------------------------------------------------------------------- Business Turnaround: Reorganize Your Company and Focus on Its Profitable Areas Copyright (c) 2010 Thayne Carper Thayne Carper http://www.thaynecarper.com/ After you have determined the root cause of your company's problems, you must now reorganize to make your company profitable. All companies have strengths and weaknesses, and it would be wise to recognize which areas are assets to you and which need improvement. Identify Assets and Liabilities A good business turnaround plan would have you determine how your profitable core is composed and which products or services are the biggest money losers. A business turnaround requires you to focus on the good, as the products or services that are the foundation of your company should be maintained and given far more attention than your company's weaker elements. Once you have determined what products or services are money makers or money losers, you should use your best products or services as the foundation of your reorganized business - this is key for a business turnaround plan. This may not result in any significant changes; for example, if 90% of your business is profitable and the other 10% not, then eliminating the weaker elements will likely not fundamentally change the nature of your business. However, if 20% of your business is profitable and the rest not, then this will be a serious reorganization that will likely change the very nature of your company. In this situation, you would have to discard inventory, facilities and perhaps even let go of people associated with the unprofitable components of your company. A good business turnaround plan requires that you focus on what produces positive cash flow and discard what doesn't. There is no economic reason to maintain the divisions of your company that do not generate positive capital. They are a drain on your resources and on the parts of your company that do make money. A business turnaround plan must include the changes necessary to make your company profitable, focus on what works, and discard or at least make significant alterations to the rest. Take Costs Cutting Measures Of course, there are other changes you can make for your business to become more profitable. Not only do you need to reorganize your business around its profitable core, but also you should look into how best to cut costs, which your business turnaround plan should discuss. Wages, supplies, inventory, and rent are the four biggest costs a company faces, and they understandably cut into a company's profits. Regarding wages, it may be to your advantage to institute a wages freeze in order to save on costs. You may have a fixed rate for supplies and other inventory; however, there may be a way to renegotiate those contracts to a lower rate or even begin looking for another supplier with lower costs. Finally, the rent you pay for a building can be negotiable should you realize that its simply too high, or above fair market value, or you can find another building in another location for a cheaper price. Business turnaround plans only work if your company becomes profitable, and sometimes you have to cut your own costs rather than sell more product or services to make that happen. If you really want to increase your profit margins, then you must take all of these factors into consideration. After all, lower costs equal higher profits. --------------------------------------------------------------------- Thayne Carper spent 4 years of college competing in student business plan competitions. He's never won a business plan competition and was dropped from his college's entrepreneurial program for lacking potential. Today, he is one of the youngest published experts on the topic of business turnarounds and cost reduction. Visit his website lower supply costs up to 30% for a copy of his report "The Definitive Guide to Doubling Your Profits in less than 6 Months" (http://www.ThayneCarper.com/FreeReport) and learn how you can easily lower supply and service costs up to 30% without hiring a consultant. Learn more: http://www.ThayneCarper.com/ --- END ARTICLE --- Get HTML or TEXT Copy-and-Paste Versions Of This Article at: http://thePhantomWriters.com/free_content/db/c/business-turnaround-reorganization.shtml#get_code ..................................... TERMS OF REPRINT - Publication Rules (Last Updated: May 11, 2006) Our TERMS OF REPRINT are fully enforcable under the terms of: The Digital Millennium Copyright Act http://thomas.loc.gov/cgi-bin/query/z?c105:H.R.2281.ENR: ..................................... *** Digital Reprint Rights *** * If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). * Links must remain in the form that we published them. Clean links should point to the Author's links without redirects having been inserted into the copy. * You are not allowed to Change or Delete any Words or Links in the Article or Resource Box. Paragraph breaks must be retained with articles. You can change where the paragraph breaks fall, but you cannot eliminate all paragraph breaks as some have chosen to do. * Email Distribution of this article Must be done through Opt-in Email Only. No Unsolicited Commercial Email. * You Are Allowed to format the layout of the article for proper display of the article in your website or in your ezine, so long as you can maintain the author's interests within the article. * You may not use sentences from this article as an input for any software that steals sentences from others in order to build an article with software. The copyright on this article applies to the "WHOLE" article. *** Author Notification *** We ask that you notify the author of publication of his or her work. Thayne Carper can be reached at: [email protected] *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: mailto:[email protected] ..................................... If you need help converting this text article for proper hyperlinked placement in your webpage, please use this free tool: http://thephantomwriters.com/link-builder.pl Would you like to learn how to improve the performance of your article marketing campaigns? Download our F.R.E.E. 108-page Article Marketing Ebook at: http://thephantomwriters.com/ebooks/advanced-article-marketing.html ***************************************************************** * * This email is being delivered directly to members of the group: * * [email protected] * ***************************************************************** ===================================================================== ABOUT THIS ARTICLE SUBMISSION http://thePhantomWriters.com/ is a paid article distribution service. thePhantomWriters.com and Article-Distribution.com are owned and operated by: Bill Platt 3010 E Raintree Stillwater, Oklahoma USA 74074 Learn more about our article distribution services by visiting: http://thephantomwriters.com/x.pl/tpw/info/article-distribution/index.html The content of this article is solely the property and opinion of its author, Thayne Carper http://www.thaynecarper.com/ --------------------------------------------------------------------- XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX ---------------------------------------------------------------------
