Finding the Right Business Turnaround Advisor: A Comprehensive Guide

Running a business that is not profitable can be a daunting challenge, especially if it has been in this state for years. But, the right advice and guidance can make all the difference. In this article, we will explore the steps you can take to find the best business turnaround advisor for your needs. We will delve into the traits to look for in a qualified advisor, the importance of their experience, and how to validate their credentials.

Why Engage a Business Turnaround Advisor?

Businesses often reach a point where they need a strategic intervention to turn things around. Many owners and founders resist this intervention, which can make the process challenging. However, if you are serious about turning your business around, finding the right guidance is crucial. Here, we introduce Middlerock's approach to business turnaround, highlighting the importance of shareholder involvement and the challenges of working with founders who are resistant to change.

Searching for a Turnaround Expert

When searching for a business turnaround advisor, it is essential to focus on experience and proven track record. Many people claim to be turnaround experts, but you need to be cautious. Specifically, ask for detailed examples and evidence of successful turnarounds. Prefer candidates who have been through this process multiple times over the years. This pattern indicates that they are genuine turnaround experts. A hint: it is less likely to find someone in their 40s with extensive experience in this area.

Utilize LinkedIn for Research

LinkedIn is a valuable resource for finding coaches, mentors, and consultants who can provide the guidance you need. Start by identifying key professionals in your industry. Follow these individuals on LinkedIn to stay updated with their posts and insights. Over time, you will gain a better understanding of their vision and approach. Once you have a list of candidates, reach out to them for initial conversations to validate the perception you formed through their LinkedIn activity. Start by following me on LinkedIn to understand what to look for and ask for.

Evaluating the Expert's Advisory Value

To determine if a potential advisor is the right fit, you can evaluate their willingness to engage with you and provide tangible advice. Middlerock, for example, is committed to helping businesses turn around. If you choose to work with us, I can help you find the right turnaround expert based on your trust in me.

Investing in Your Business Turnaround

Measuring the willingness to invest in turnaround advice is crucial. Advisors require payment for their expertise, especially for complex and challenging situations. Here are some diagnostic questions to help you evaluate the situation:

Why haven't you been profitable over the past seven years? What story are you telling yourself at this point? What is your cost of customer acquisition? What is your cost of order fulfillment? What are your margins (money kept after the above two costs)? How many orders do you get a year now? Has the order count been growing, declining, or fluctuating? Do you have a revenue plan, or are you flying by the seat of your pants? Do you have a good traffic source for targeted customers? What skill sets are you lacking in the business?

By answering these questions, you will have a clearer picture of the challenge at hand and can start to formulate an effective plan. For example, you might need to address marketing efforts, supply chain efficiency, pricing strategies, or a combination of these areas.

Conclusion

Turning a business around is a significant undertaking, but with the right guidance and determination, it is achievable. Look for experts with a proven track record and a deep understanding of the subject. Utilize online resources like LinkedIn for research and validation. By investing in the right advice, you can pave the way for a successful turnaround.