Decline

Dropping sales and profits, eroding market shares, challenges to operational stability, loss of competitive advantage are all symptoms of economic change, particularly in a downturn. In this stage of the life cycle, finding ways to sustain your cash flow is vital. The very survival of some private businesses may depend on how long they can support a negative cash flow—managing internal, controllable costs becomes critical. But some business owners may be in a position to take advantage of an economic downturn by searching for new opportunities and business ventures. Still others might be wondering if now’s the time to move the business onto the final life cycle stage—transition.

What decisions you’ll be faced with will depend on your situation. How is your relationship with your bank? Can you look for capital from other sources such as suppliers, customers and owners? Have you considered outsourcing or core-sourcing to cut costs? Is your supply and distribution chain integrated? Ultimately, you’ll need a strategy to deal with the challenges that lie ahead.

• audit and review
• financial statement preparation
• operational improvement
• productivity improvement
• strategic advisory
• tax services

See how we can help you with the other stages of your business