Every day business owners all over South Africa face decisions about how to transform their business and take it to the next level. Executives who have turned-around large companies usually and with regularity have the ability to cut large numbers of employees, tap pension funds, apply to banks for infusion of capital, and sell off assets to raise cash to decrease debt.
Although not demeaning the accomplishments of these people, few small and midsize companies can make such dramatic changes. These businesses can have a difficult time getting a line of credit from a bank, and frequently don't have meaningful assets to sell to increase the company's cash position, and can't afford to lay off large numbers of people.
Companies usually don’t find themselves in trouble overnight. It happens over a period of a few months to a couple of years.
Below are ten steps that you can implement for a successful turnaround.

Step 1: Write A Business Turnaround Plan
Rarely do companies who write and maintain plans on a regular basis get into trouble. Plans chronicle the good and bad of the past and set a vision for the future. What type of plan must be written? Is it a formal plan – for external use or informal for internal use.
Investors, management, and employees all need to know what the company’s future plans are. They need to see where they fit in, how they can help, and to share suggestions based on their expertise that will help the company succeed.

Step 2: Meet With Key Personnel
You must get the key people in the business together to have a no-holds-barred discussion on how to fix the company. Don’t go into meetings without a plan of your own. People lose confidence in leaders who lack a plan and vision for their business. The key in this type of meeting is to be self-assured, open-minded, and flexible.

Step 3: Revise Plans
After listening to key players in the business, revise and ask key players to review the plans a second time before presenting them to the board of directors/owners and employees.

Step 4: Meet With Employees
Have a company meeting, admit that there are things wrong with the business, and discuss how management plans to fix it. Provide employees with a copy of the company business plan and ask for their input. This step demonstrates that careful consideration has been given to the development of the business.

Step 5: Meet With Customers
Rumours of the business’s distress and downturn are reported around the business community. Key customers are becoming nervous and some are even looking for new suppliers. Don’t stick your head in the sand. Inform your customers about your situation and tell them how you plan to correct it. Be reassuring, but not deceitful.

Step 6: Meet With Company Suppliers
Company vendors get very nervous when they hear “on the street” that one of their customers is having trouble. Develop a prepared statement outlining the problems and how you plan to deal with them. You will receive plenty of concerned telephone calls. Respond quickly and considerately to all of them.

Step 7: Contact Tax Authorities
If you can’t pay your taxes, notify the authorities. Tax authorities will work with you, but don’t be deceitful or fraudulent. You’ll be on much better terms with them if they understand your situation, rather than trying to avoid your obligation.

Step 8: Contact Your Bank
If you have loans or a line of credit, call—don’t write—your CRM and tell them you need to meet in person. Give them the bad news followed by your plan of action. Appear confident, encouraging and self-assured.

Step 9: Keep Only Employees Who Are Essential To The Business
Figure out which employees you can let go without damaging your business. Nobody likes to let people go, but for the business to survive you want to keep only people who are essential to the business’s survival.

Step 10: Cut Unnecessary Costs
Make a list of all your expenses and eliminate what you don’t need. You need to buy time in order to fix your problems, and cutting expenses is a good way to buy “financial” time.