Stakeholder support will put to bed threats of business liquidation and allow companies to recover and thrive.
Based on challenges faced by many entities shutting down due to loadshedding and economic challenges, plans and strategies are being put in place to help sinking businesses stay afloat.
The international turnaround firm RT Group aims to bring changes through its plan to help businesses survive tough economic challenges.
Its founder and CEO Michael Dorn said in the current business landscape, the strength of any company’s relevance and stakeholder support is pivotal.
“Recognising the signs of dwindling relevance and stakeholder enthusiasm early on allows businesses the opportunity to strategically pivot, rejuvenate and thrive, and this prevents the drastic decision of liquidation.
“The choice lies between timely turnaround or the inevitable dissolution. In the wake of escalating business liquidations across South Africa, one question becomes paramount. Does your product or service resonate with current and future market needs?”
Dorn pointed out that through ensuring a distinctive position, especially in alignment with evolving digital trends, is the crux of business survival.
“Each phase of the business life cycle in growth, stagnation and decline comes with its own set of challenges, opportunities, and key aspects that need to be managed for the overall success of the business.
“If a stagnant business stops investing in new products, adapting to market conditions or maintaining company energy, morale and financial discipline, it will go into decline, which may become irreversible if rectification strategies are not put in place,” said Dorn.
“Businesses go under because of mismanagement. Sometimes crises are brought on by unexpected external forces, but if sound fundamentals are in place, including proactive leadership, solid financials, people and product management, it will almost always be possible to adapt and survive,” he said.
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