Assessing the viability means conducting a detailed investigation of your business and its circumstances for 2 to 4 weeks. The analysis gathers plenty of information like;
A swot analysis offers clarity
Analysing the viability of the current business
Studying whether business issues are controllable or not
The main cause of it
Capabilities of the management
Debtors and stakeholders
Historical financial records like costing system, cash flow, balance sheet, P&L
The summary of the above mentioned elements offers decision-makers to consider priorities and risk factors. The board of directors has to make a decision based on the information.
Stabilising & Developing Strategy
After recognising the priorities and risks of your business, next, you have to develop a recovery strategy and stabilise the business position. The timeframe usually depends on the complexity of the business circumstances ranging from few weeks to 3 months. However, some of the main elements in the second stage are as follows..