A real business turnaround story about why stability should come before growth
Just over three years ago, I met the owner of a small family-run manufacturing business.
Like many businesses I encounter, they were working incredibly hard but weren’t necessarily moving forward.
Cash flow was unpredictable. Production procedures were inconsistent. Sales were largely dependent on enquiries from the general public using increasingly outdated marketing methods.
The management structure was informal and reactive rather than planned.
And, of course, Covid lockdown had taken its toll.
At times, it genuinely felt touch-and-go whether the business would survive.
Yet there were also some powerful strengths.
The owner, who was already in his late sixties, had energy and determination that many people half his age would struggle to match.
His two sons were equally enthusiastic and keen to introduce new ideas, particularly around technology and modern sales channels.
The problem wasn’t a lack of effort.
It was a lack of direction.
The First Rule: Stabilise Before You Grow
One of the biggest mistakes I see in struggling businesses is the immediate focus on growth.
More sales, more customers, more marketing, more staff.
But if the foundations aren’t right, growth can actually make the problems worse.
So we didn’t start by talking about expansion or ambitious profit targets.
We started with stability, there were three areas that needed attention.
1. Cash-flow control
The business needed a much clearer understanding of exactly when money was coming in and when it was going out.
Simple forecasting replaced guesswork.
It wasn’t complicated.
But having a clearer picture of future cash flow immediately made decision-making easier.
2. Production discipline
The production side of the business needed clearer procedures.
Consistency matters enormously in manufacturing.
Clearer processes helped reduce waste, improve consistency and protect margins.
Again, nothing particularly glamorous.
But these are the things that make a business work.
3. Defined management roles
Family businesses can be fantastic places to work.
There is often a huge amount of trust, loyalty and commitment.
But family relationships can also mean that responsibilities aren’t always clearly defined.
Who makes the decision? – Who is responsible for what? – Who is accountable when something doesn’t happen?
We introduced more structure around the management roles.
Not bureaucracy, just clarity.
And these changes created something that was perhaps even more important than immediate profit.
Confidence.
The Turning Point: Changing the Route to Market
The next major issue was sales.
Historically, the company had sold mainly direct to the general public.
That provided regular activity, but it also created some problems.
Volumes could be unpredictable, pricing always seemed to be under pressure.
And it was difficult to plan production with any real certainty.
So we looked at developing a second route to market.
Business-to-business sales
The idea wasn’t to abandon the existing customer base.
Instead, we wanted to create a more structured B2B sales channel alongside it.
This opened up the possibility of larger and more repeatable orders.
It also brought some important advantages:
- More predictable production requirements
- Larger repeat orders
- Better pricing control
- Improved production planning
- More predictable cash flow
The original direct sales channel remained.
It was useful and profitable.
The difference was that it was no longer carrying the entire business.
There were now two distinct routes to market.
That was an important change.
We Didn’t Chase Growth
This is perhaps the biggest lesson from the whole exercise.
We didn’t set out to transform the company overnight.
We didn’t throw money at advertising.
We didn’t try to double turnover in twelve months.
We concentrated on making the business work better.
Once the foundations became stronger, growth became much easier to manage.
And importantly, it became sustainable growth.
There is a big difference.
A business can grow rapidly and still be fundamentally unhealthy.
Turnover can increase while cash flow gets worse.
More customers can create more operational problems.
More orders can put pressure on production.
Growth isn’t automatically success.
Healthy growth comes from a healthy business.
Three Years Later
Today, the company is a very different proposition.
It has:
- Solid operational foundations
- Clearer leadership responsibilities
- Two distinct routes to market
- Better production discipline
- More predictable cash flow
- Managed and steady growth
But perhaps most importantly, it has renewed belief.
The owner continues to bring experience, energy and determination.
His sons bring enthusiasm, technology and an openness to change.
Together, they have built something that isn’t simply busy.
It is sustainable.
And for me, that’s the important distinction.
What Business Owners Over 60 Can Learn From This
There is sometimes an assumption that later life is a time to slow down professionally.
I don’t agree.
In fact, your sixties and beyond can be an incredibly powerful time to build, reshape or reinvent a business.
Experience matters.
You have seen businesses succeed and fail.
You have made mistakes.
Hopefully, you’ve learned from them.
And you can often recognise risks and opportunities much quicker than you could earlier in your career.
The trick isn’t necessarily to work harder.
It is to work more clearly.
Know your numbers.
Understand your operation.
Know who is responsible for what.
Look honestly at where your customers come from.
And don’t confuse being busy with running a healthy business.
The simple principle
Strong foundations first.
Growth second.
That simple principle has probably saved more businesses than any clever marketing strategy ever will.
And sometimes the best turnaround strategy isn’t about doing something completely different.
It is about finally fixing the things that have been getting in the way.
A Final Thought
I look back at this particular business with some satisfaction because it was never about one big idea.
There was no magic solution.
It was a series of relatively simple changes, made in the right order.
Get control of the finances.
Improve the operation.
Create some management structure.
Find a better route to market.
Then allow the business to grow.
For anyone running a business after 60, I think there is a wider lesson here.
You don’t have to start again.
Sometimes you simply need to look at the business you’ve already built and ask:
What would make this work better?
That might be the beginning of your next chapter.
Frequently Asked Questions
What is the first step in turning around a struggling business?
The first step is usually to stabilise the fundamentals before trying to grow. In this case, that meant gaining better control of cash flow, improving production discipline and creating clearer management responsibilities.
Should a struggling business focus on growth?
Not necessarily. Growth can actually make an unstable business more difficult to manage. Building stronger financial and operational foundations first can create a much better platform for sustainable growth.
Can changing the sales strategy help turn around a business?
It can. Developing an additional route to market can reduce reliance on one type of customer and create more predictable sales. In this case, introducing a structured B2B channel alongside existing direct sales helped improve order consistency and cash-flow predictability.
Can family businesses benefit from clearer management structures?
Absolutely. Trust and family relationships are valuable, but clearly defined responsibilities help everyone understand who is responsible for decisions and outcomes. Structure doesn’t have to mean bureaucracy.
Is it too late to reshape a business after 60?
Definitely not. Experience can be a major advantage when reshaping a business later in life. The objective doesn’t have to be building the biggest business possible. It can simply be building a business that works better, provides income and is sustainable for the future.
Over to You
Have you ever had to turn around a struggling business?
Or perhaps you’ve reached a point where you know your business needs to change, but you’re not quite sure where to start?
I’d be interested to hear your experience.
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