In this episode of the Authentic Advisor, James Mason interviews Peter Lucas from Kestrel Solutions about turning around underperforming businesses. They discuss the challenges faced by business owners and managers, the early warning signs of a troubled business, and the use of technology for early identification.
Peter shares his approach to starting the turnaround process, including conducting waste audits and involving the team. He also shares a case study of a successful turnaround in the timber windows and doors industry. The episode concludes with Peter offering final tips for advisors seeking to help their clients in similar situations.
Takeaways
- Cash flow is the number one factor to focus on in turning around a business.
- Advisors should have knowledge of insolvency laws and directors' duties.
- Implementing waste audits and involving the team can help identify areas of improvement.
- Constant involvement and evolution, along with constructive guidance, can prevent businesses from slipping back into bad habits.
- Advisors should consider requesting upfront payment and avoiding time-based billing to maintain trust and accessibility.
Chapters
01:10 Introduction and Background
03:20 Challenges for Business Owners and Managers
05:45 Early Warning Signs of a Troubled Business
10:22 Using Technology for Early Identification
12:23 Starting the Turnaround Process
16:00 Waste Audits and Involving the Team
21:01 Case Study
22:43 Constant Involvement and Evolution
25:58 Final Tips for Advisors
