On Friday afternoon I had the pleasure of interviewing Spike Humer on turning around your business and effectively pulling back from the brink.
Spike is the co-author of “The 10 Day Turnaround for Business – How To Transform Your Business Virtually Overnight” and in 2005, joined the Jay Abraham Group as COO and Chief Consultant.
Spike was a great guest and shared lots of practical tips in this call which will be one of the bonuses for those people who join my new membership site Your Profit Club.
I structured the interview around the first four stages of a model of business decline from two academics William Weitzel and Ellen Jonsson after investigating business failures
The idea is that decline can be reversed at any stage but if the turnaround opportunity is lost, the business moves to the next stage.
- Stage 1 - Managers are blind to the problems building up in and around the business
- Stage 2 - A period of Inaction after they recognise there is a problem while they make their assessment of what, if anything, to do
- Stage 3 - The faulty action stage - it's what happens if managers make the wrong diagnosis of the problem, and treat symptoms and not root causes
- Stage 4 – Crisis – actions in the next few weeks will make or break the business.
- Stage 5 – The end... Dissolution and the collapse of the business.