Any company can experience a crisis. To overcome a difficult situation, it is usually enough to introduce minor changes or apply one of the popular solutions to combat the crisis. What if nothing helps? How to write a recovery plan for the company that will save it from collapse?
What is a recovery plan?
A recovery plan is the entrepreneur's actions and implemented procedures aimed at improving the situation of his company. In the process of repair crisis situation time plays a key role in the company. The sooner you develop and implement such a plan, the better your chances of saving the situation and achieving further success on the market.
Preparing a recovery plan is a demanding process that must be fully committed to. Before you take any action, do a detailed analysis of the situation. In the repair process, rational and thoughtful steps and drawing conclusions are key, not impulsive actions and being guided by emotions. Only later can you start working on the plan.
A company in crisis - how to write a company's recovery plan?
One of the effective ways to deal with a severe crisis is restructuring. Restructuring is a complex, demanding process. First of all, you need to stabilize the situation, i.e. stop the negative trend that disturbs the functioning of the company. The second stage is to provide the company with strong leadership, that is, appointing a person who will lead the entire restructuring process. Then, you need to build relationships with stakeholders - including customers, employees, financial institutions, and suppliers. The last step is to prepare a recovery plan.
- Stabilization
A crisis situation is associated with a high risk of losing financial liquidity. To prevent this from happening:
- review all contracts with financial institutions and determine whether the company will be able to pay its financial obligations within the prescribed time limits,
- plan all expenses in detail,
- reduce the operating costs of the enterprise.
2. Identifying the leader
Restructuring is a big change. The person at the forefront of the process should be highly qualified, experienced and leadership skills. In crisis management the key is efficient decision making, taking decisive steps, issuing clear orders and strategic thinking.
3. Communication with target groups
A company undergoing the restructuring process should take care of relations with all interest groups, in particular with financial institutions, which should be assured that the activities carried out will save the company and prevent the loss of borrowed money. During this time, the company should focus on building relationships based on mutual trust. In communication with customers honesty and openness matter.
4. Preparation of recovery plans
How to prepare a company's recovery plan? The process should be preceded by a thorough analysis of the situation, taking into account many aspects. It is important that the plan addresses the company's fundamental problems and indicates solutions to these problems. A well-prepared plan should be a specific map of goals and steps to be taken to achieve them.
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How to write a company's sales recovery plan?
Even the best sales plan can fail to work. Have you noticed a drop in customers' interest in your brand, your sales profits no longer satisfy you and are you afraid that soon problems may have a negative impact on the functioning of the entire company? So it's high time to take action that will save your business!
There is no certainty that once a sales plan is written, it will always come true. The strategy must be modified, improved, adapting to the situation on the market. In the event of a crisis, it is worth preparing a recovery plan.
The process of repairing a company's sale consists of three stages:
- diagnosis of the cause,
- development and implementation of a recovery plan,
- assessment of the effectiveness of the recovery plan.
Diagnosing the cause of a drop in sales
The key to managing a problem with sales is to stop the negative trend so as not to lead to further losses. You can do it by finding the cause of the current state. To answer the question why you are losing customers, you can prepare the so-called sales funnel.
The sales funnel shows the whole selling process - all the stages that people interested in a product go through, from the moment they hear about it for the first time until the moment they buy it. The shape of the funnel reflects the sales reality - there are always more people initially interested in a product than people who will eventually become customers. The funnel is used to analyze the various stages of sales and the sales activities undertaken in them. Funnel levels, depending on the specifics of your specific industry and product, may vary slightly. In most cases these will be:
- attracting attention,
- increased interest,
- lead classification,
- sale,
- after-sales activities.
A detailed analysis of all sales stages will allow you to see what is blocking customers.
The second way to diagnose sales problems is to analyze customer segmentation. Segmentation is the division of customers into smaller groups according to individually adopted criteria. The goal is to adjust the sales offer as much as possible to the needs and expectations of customers.
Why is it worth checking the previously prepared customer segmentation in the process of diagnosing sales problems? Perhaps the trial was not conducted properly. The biggest mistakes in creating segmentation include: failure to take into account all key customer needs and mismatch between the offer and those needs.
What should be in the sales recovery plan?
The plan should include a detailed description of the actions that the company intends to take to overcome the crisis situation. Brainstorming is helpful in finding solutions to sales problems. It is worth summoning an appropriate crisis management team consisting of highly qualified employees, sales and marketing specialists and other experienced people. Their vast knowledge, experience and full commitment to the process will allow us to find effective solutions that will help the company overcome the crisis, will support the saleand thanks to this, the company will have a chance to generate high profits again.
The implementation of the company's recovery plan is not the last step in crisis management. Each entrepreneur should carefully analyze the effectiveness of the actions taken. Conclusions from the analysis will allow protect yourself against the crisis in the future.