Creating a business rescue plan involves formulating effective strategies that will rehabilitate your financially distressed business as an alternative to liquidation. You will need to do a thorough review of the current state of your business to fully identify what is the root cause of why you are incurring a lot of debt instead of making some sort of profit. From there, you will be able to map out the course of action you need to take to address this dilemma. So confused on how to start the whole process? Well look no further as below are the key steps that will help you get started on the right track.

So that you do not feel overwhelmed with the whole procedure, we have divided the steps to design an effective business rescue plan into three different parts:

Part A: Evaluation

• Schedule an appointment with your accountant and attorney to fully assess the current financial status of the business.
• You should make a complete list of all the tangible assets of the organization and identify which of those properties were used as collateral or collateral for your creditors when you started your business.
• Create a comprehensive list of the organization’s creditors. Classify them according to the rules of the insolvency laws and regulations on whether they are of the type of secured creditors, statutory preferred and concurrent.
• Calculate the probable dividend that could be received by creditors, within their specific classes, if the organization were put into liquidation.
• Make an updated list of the current shareholders of the company’s released investments.

Part B: Research and Planning

• Conduct surveys to obtain consumer feedback. That way, you can determine what your customers want and don’t want.
• Identify which products and services have low conversion rates and formulate a marketing strategy that reinvents them to make them more attractive to the market.
• Brainstorm with team members and identify all possible options and strategies that might be feasible to improve sales.
• Plan how to best promote your product. Identify if it is necessary to change the packaging, etc.
• Draw up an advertising plan. Almost all people have access to the Internet. Therefore, try to set up a website where you can post articles, videos, and other types of media that can better promote the type of products and services that your company currently offers.
• Identify which companies or other associations you can join. Choosing the ones that can help complement the products and services you currently offer can boost sales.
• Create a referral rewards plan for your existing customers. This is one way that will help expand your market even more. If you offer your consumers rebates or discounts every time they make a successful referral, they will be more inclined to spread the word and attract more people to take advantage of your services and products.

Part C: Conclusion

• This last phase involves reaching an agreement with the members of the organization, shareholders and creditors to implement the business rescue plan. A timetable should be determined for when you expect to see profit.