FAQ

Frequently Asked Questions (FAQ)

Below are some of the most Frequently Asked Questions that you may have about CRI and its’ services:

  1. How do you know if my company can be turned around?

    2. A. During preparation of the business viability assessment, we analyze alternatives available to you. We will generally recommend a turnaround if:

    • The conditions conducive to a turnaround effort exist, and
    • A turnaround effort is the most attractive alternative when compared to other options

    Note, however, that even with the these two prerequisites being met, the success of a turnaround is highly dependent upon specific actions.

  2. What do you mean that the success of a turnaround is dependent upon specific actions?

    3. A. The best plan in the world will not succeed if it is not properly implemented. Effecting a turnaround is not easy. Tough decisions must be made quickly and acted upon. There is no time for indecision – only time for action.

  3. How much will it cost?

    4. A. Every situation is different. Generally, we charge an hourly rate. We try to minimize your cost by utilizing and training your employees to perform the necessary tasks.

  4. How long will a turnaround typically take?

    5. A. A full-blown turnaround can last six months to a year.

  5. If I can’t pay my bills now, how can I afford to have a turnaround consultant?

    6. A. The better question to ask yourself is: “How can I afford NOT to have a turnaround consultant?” Let’s face it. Things need to change. We will effect those changes within your organization that will restore your company to profitability. Our fees are basically paid for by the restoration of profitability.

  6. Do I have to fire everybody and start over?

    7. A. No, but the under-performers will be identified and eliminated or replaced. This is one of the most difficult issues in a turnaround – after all, nobody enjoys terminating people. But remember – this is survival. During a turnaround, you need committed, skilled employees who have invested themselves in the project. There is no room for employees who do just enough to get by.

  7. Won’t my customers and suppliers stop dealing with me if I hire a turnaround consultant?

    8. A. No. Generally, we find that most customers and suppliers are extremely supportive. You are more at risk of losing valuable business relationships if you continue on in your business as you have been and do nothing.

  8. When should I contact CRI?

    9. A. Read the “Business Assessment Questionnaire”. This section provides questions that contain the most common elements of a distressed business. If you can answer yes to two or more of the questions on that page, call us. We can help you determine if you need help. The longer you wait to seek the help, the more difficult it is to fix the problems.

  9. What is one of the most common mistakes that you see the owner of a troubled business make?

    10. A. Failure to face the issues that are creating the problems. We call that the “ostrich syndrome”, and it can be the downfall of many businesses. Ignoring the problem does not make it go away – in fact, that’s how many businesses get into trouble in the first place.

  10. What makes the difference between a successful turnaround and a failed turnaround?

    11. A. Most businesses can, in fact, be saved. Continuing to do business as it has been done in the past in the face of inadequate performance and deteriorating resources only perpetuates the problem. By hiring a turnaround specialist, the chances of saving your business are high.

  11. Why can’t my staff affect a turnaround internally? Do we really need a turnaround consultant?

    12. A. Current management usually cannot “see the forest for the trees”, and may have a harder time initially correcting the problem. Turnaround consultants have the experience with crisis management, but most of all they have objectivity. They are not involved in office politics. During a turnaround, tough, quick decisions combined with action must occur – sometimes at breakneck speed. Every action needs to benefit the company’s survival and be completely removed from personal agendas or politics. A turnaround manager brings not only the experience, but provides a fresh face and positive attitude. This specialist will work immediately to calm angry creditors, reassure concerned customers, and work closely with management and employees to dispel rumors and gain their support for a turnaround effort. By the time a company gets to the point that a turnaround consultant is needed, the current management team is usually tired, confused, and in need of direction.

  12. Will I lose control of my business?

    13. A. No. The CRI team will advise you on the actions that need to be taken to restore the balance to your business, but ultimately the decision to take the action will be left up to you.

  13. Does CRI want any type of ownership in my business?

    14. A. No, we do not take an equity position in our clients.

  14. Do I have to sign a contract?

    15. A. No. We are authorized to work with you through an engagement letter. No specific time frame is stated – you can terminate our services at any time. Likewise, we can discontinue work on your case with a seven-day (one week) written notice.

  15. How much do I have to pay up front?

    16. A. Remember, the first consultation is free and of no charge to you. After the initial consultation, we generally charge a “back end” retainer in order to start working on your case. This retainer is generally our estimate of one week’s worth of fees. Because of the higher risk of our business, this fee collection functions as a safety net for us. We bill you weekly and expect payment on current services as incurred. Then, your retainer will be applied at the end of the engagement.