Your club turnaround will be the most stressful time of your life. In our health club turnaround practice, we have worked with small, medium and large clubs. We can tell you that regardless of the size of your club, the stresses of a turnaround are tremendous.
To help those leading troubled clubs, we decided to out this into a checklist format so it is easy to understand.
Business Turnaround Checklist
- Stop all payments immediately and don’t allow another outlay until you create a cash budget.
- Gather your accountants, salespeople and operations managers into a room. Don’t let them leave until you create a cash budget that allows you to keep paying your critical payments especially payroll. Your budget will likely need spending cuts, vendor stretching and speeded up collections to keep you from running out of cash.
- Engage a health club turnaround consultant if you have enough cash. By doing this, you will improve your chances of recovery.
- Find your core business. Your core business is any product, service, division or customer that makes money for your gym. Everything else is non-strategic.
- Create a company turnaround plan based around your core business.
- Cut all non-strategic people.
- Sell non-strategic assets.
- Negotiate with creditors, taxing authorities and your banker to reduce your debt and to improve your payment terms.
- Carry out your restructuring plan.
Although this has been a short guide, it does contain all the essential elements of a gym restructuring. Of course, we would be happy to help you if you would like to engage us as your turnaround consultant.