5. Creation of a detailed, executable business plan
Until the company is stabilized and healthy again it seems strange to be spending time on strategy and long range plans. Yet part of what is required to have the breathing room to effect the turnaround is the assistance and cooperation of creditors, investors, employees, customers – really all stakeholders. And the reason they will cooperate, even enthusiastically, is that they can see and believe that there is an achievable plan (based on a well thought out solid strategy) not only to survive but also to succeed. The plan needs to address these sample elements:
- Market opportunity
- Competitive landscape
- Sales, marketing, product marketing strategies
- Production, distribution, logistics
- Complete, integrated financial plan, considering all resources required
- Expression of above in detailed project plan format
- Management structure required, and identification of head count plan
- Assumptions relating to what is to be asked for from creditors (this becomes part of the financial restructuring process and it may, for example, offer lenders equity in exchange for debt)
- Detailed estimated, forecast balance sheets, income statement, and cash flow statements, by month, for three or more years
