A Turnaround Artist Can Keep Your Business Afloat

Hiring a Full-Time Specialist

A full-time specialist should be engaged when the business leader and/or the board of directors decide that new top leadership needs to be put in place.

Duties: The new leader will be responsible and accountable for all facets of the business.

Hours: A full-time turnaround specialist expects to work at least 50 to 60 hours a week until all of the problems are under control and the company is once again profitable.

Control: There can be no question that the specialist is in complete control of the business. No one can be hired or fired, and no one can spend one penny without the approval of the specialist. A lot of business owners naturally have a difficult time with this concept, but the specialist needs this level of control to be effective. In regards to check-signing authority, the business owner can require two signatures on every check over $1,000 so he can monitor and approve expenditures.

Compensation: Most small firms and individual turnaround specialists require cash compensation, plus cash bonuses based on performance and warrants/stock options in the company. There is no set rule on stock options, but usually they range from 5% to 15% of the company's stock.

Take a long look in the mirror and evaluate your own skills. If your business is having problems that your skills and abilities can't fix, don't be ashamed or afraid to bring in help. You have a responsibility to your employees, their families, your vendors and your customers to do what is best for the company. If that means replacing yourself or one of your managers, regardless of relationships and ego, you have to do it.