This method can be considered the most important in financial recovery.
After all, profitability can be increased not only by saving. It is reasonable to carry out measures aimed at increasing the efficiency of using the assets available to the company.
The debtor, in order to overseas chinese in worldwide data improve the current financial situation, is obliged to develop and implement actions leading to an increase in income. This refers to:
improving the quality of goods or services sold;
increasing the volume of production;
reducing the cost of manufactured goods (by resorting to the rational use of time and labor resources);
attracting new customers;
diversification of production;
expansion of sales markets, etc.
Some income can be extracted from that very difficult situation. For example:
fines can be collected from those who violated the business contract;
It is possible to receive lump sum payments from successful collection of accounts receivable.
Anti-crisis marketing will help to increase profitability. Some companies only need to implement some PR campaigns and strategies to dramatically change their financial situation, they just need to find a foothold.
Optimization of the organizational structure and conducting a clear analysis of current business processes
The company's competitiveness and profitability depend on this.
The mechanism of financial recovery of the enterprise assumes some changes in the organizational structure. There is a possibility of revising the principles of interaction between departments and creating new units.
Thanks to such changes, costs become lower, and the quality of work only improves. And in general, the process of business management becomes simpler.
Some debtors are forced to break the existing organizational structure in order to build something completely different, more suitable for the established development concept.
When all measures taken have ensured a positive result, the creditors are satisfied or agree to a settlement agreement, the arbitration court terminates the bankruptcy case.
Otherwise, the court will declare the debtor bankrupt and then order the company liquidation procedure.
Even experienced entrepreneurs make mistakes. And they, too, can take the wrong path when choosing between reviving a business or liquidating it. You need to think several times, weigh all the pros and cons, and if you choose the financial recovery procedure, try to make the most of all hidden profit reserves.