In our blog introducing this new series on the Process to Financial Recovery for a business or company, we listed the 12 steps to go through, and today we get right to the first one: Recognition.
The first step in many recovery processes, whether financial or otherwise, always talks about recognizing that there is a problem; that it is real, it exists, it is present and accounted for.
Though it is not always the case, for the most part the person (or persons) who should recognize that there is a problem should be a member of the upper echelon or top executive. Then follows the process of learning and understanding what the problem is; for instance, determining what the revenues will be going forward, or whether major expenses are putting a strain on the business. This kind of information can assist you in determining the scope of the problem and whether financial recovery will fix the problem or just put a temporary band-aid on it without really solving it.
An additional step would be to gather supporters who can assist with the understanding of the situation and develop a fiscal plan of action for the near term. This will go a long way in deterring potential panic or worry within the group.
Stay tuned for Step 2 : Mobilization.
As always, please make sure you make an informed decision at all times,