Financial Turnaround
One of the reasons I’m so passionate about working with business finances is that no matter what product or service you offer, every business plays by the same financial rules.
To thrive, every business must have:
Strong profit levels to support monthly commitments—like staff wages and paying suppliers.
Steady cash flow to actually meet those commitments.
Without both, even the best business ideas can struggle to survive.
But here’s the truth: I’ve seen far too many business owners overlook these crucial numbers—not because they don’t care, but because they’ve never been shown how to stay on top of them. If that sounds like you, don’t worry. You’re not alone—and more importantly, you’re not stuck.
First of all, stop being hard on yourself. Finances aren’t everyone’s strength. That’s exactly why Finance Directors exist—we’re here to support you.
Second, and most importantly: take action. Don’t wait. Don’t let fear or doubt hold you back. Too many business owners get caught up worrying what a Finance Director might think of their numbers—when the real power comes from choosing to change those numbers.
Here’s my secret: I don’t care where you’re starting from. What matters to me is where you want to go—and how we can get you there, together.
If your business is facing financial challenges, don’t wait another day. Book a call now—and take the first step toward turning things around.
Adverse Profit & Cashflow are the results of adverse inputs.
Here are some of the reasons why businesses experience adverse outputs:
Reason 1
The board is not aligned, and there are disagreements about the direction of the business. This results in Directors pulling in different directions. Unfortunately, while the Directors may believe their disagreements are happening behind closed doors, the reality is that employees can see it all playing out in front of them. This, in turn, demotivates the workforce, causing poor performance to continue spiralling.
Reason 2
With the best intentions, a business may expand its product lines after spotting money-making opportunities in new markets or sectors. However, it’s easy to get carried away and pursue these opportunities without proper due diligence or realistic expectations. Without the right investment and infrastructure in place, these “shiny new toys” often turn out to be far less lucrative than expected, quickly burning through valuable cash and diverting focus from core operations.
Reason 3
Great news—the business has won a large contract! The turnover will be worth millions! It all sounds fantastic—until halfway through delivering the contract, you realise it’s losing money. Why?
To win the contract, the product or service was heavily discounted in order to be the lowest bidder and secure the customer’s order. In the excitement of chasing big numbers, the business lost sight of its core purpose: profit.
Don’t chase contracts just for the sake of turnover. Always ensure the profit margins are there, because turnover is vanity, but profit is sanity.
Reason 4
On the surface, the business appears to be thriving—new customers are buying your products and/or services, and revenue is doubling every month. So why is the business experiencing cash flow issues?
A rapidly growing business can become a cash hoover, quickly consuming all available funds. Growth often causes a sudden and significant increase in costs—inventory, staff, infrastructure, and more. As a result, the business can grind to a halt, with its cash flow effectively paralysed by its own success.
Reason 5
Forgotten Values & Heritage = Poor Culture
This brings me to the 5th reason for financial downturn—and arguably the most important: culture. Most businesses suffering from poor financial performance typically face more than one of the issues previously mentioned. But at the root of many financial problems lies a deeper cause: poor culture.
Financial issues are often symptoms of a misaligned or deteriorating culture. For example, a misincentivised salesperson may chase unprofitable contracts just to hit targets, or a finance team may avoid chasing overdue payments, leaving vital cash tied up for months.
These behaviours stem from a culture where the founding values and original vision of the business have been forgotten. Ask yourself: when your predecessors stood in your shoes, would they have allowed this to go unchecked? In many cases, the answer is no.
Reconnecting with your business’s founding values is a powerful first step. Strengthening the culture from within often marks the beginning of a turnaround in financial performance.
These are just a few reasons why businesses face a financial downturn. If your business is experiencing a downturn, book a call with me today and let us explore your options.