In continuing with our series on the 12 Steps to Financial Recovery, we are now moving on to the next step. So once you’ve done your in-depth diagnosis and have figured out your Recovery Plan for bringing your business back onto the road to financial recovery, you now need to discuss Long-Term Treatments, which is Step 8.
In a previous post we discussed the need for trying out Generic Treatments (Step 3), which in review are techniques usually needed right away and with little time for preceding analysis that can not only serve to fix the problems you are experiencing – but if they don’t, they also help to figure out what’s definitely NOT a problem and give you an idea of where to go from there. Long-term treatments vary dramatically from those generic treatments in that they are well thought-out and analyzed as they are intended to influence essential change for the operations to make lasting improvements to the financial position.
Here are some of the major categories of long-term treatments:
*Enhance Planning *Contain Personnel Costs
*Improve Efficiency *Improve Community Attachment
*Reform the Budget Process *Improve Leadership and Management
*Support Economic Development *Become More Innovative
*Address Long-Term Liabilities *Increase Accountability
*Metropolitan Area Restructuring *Address Legal Constraints
When figuring out your long-term treatment(s), a balanced portfolio approach is best as it will address the root causes of the financial distress.
Almost done! Stay tuned for Step 9: Long-Term Financial Planning.
As always, please make sure you make an informed decision at all times,
The Capital Corp Team