Comprehensive Business Survey
DiversiCorp’s long history of small business consulting has always utilized the Comprehensive Business Survey (CBS) as the first step in a continuing consulting engagement. The goal is to rapidly assess, analyze, research, quantify, qualify and profile a troubled business to the point a go-forward crisis-to-recovery plan can be communicated. In most cases it is offered at a flat rate ranging between $2500-$7500 according to the size and complexity of the business.
In actuality, the use of the CBS can reduce the cost of ongoing consulting by more precisely scoping out the engagement and human resources required. It is also possible that in some instances a discovery is made that can immediately pinpoint a solution or recommend an alternative with little additional cost. The CBS is normally carried out by a senior level consultant or team with more than 10 years of experience, and lasts several days plus write-up time.
Some but not necessarily all the business issues surveyed include:
* Accounting deficiency or adequacy
* Accounts receivable status, trends, and key indicators – if slow, potential to speed collections
* Balance sheet “right-sizing”
* Bankruptcy assessment
* Cash flow analysis and 13 week projections
* Business Strengths, weaknesses, opportunities and threats (SWOT)
* Defaults in lending or credit terms – alternatives to cure, replacement or restructure
* Employee assessment of key persons and whether contributors to problems or part of solution
* Financing and credit – adequacy, options, mitigation of problems, alternatives or substitutes in workout
* Insufficient capital – potential for restructuring or conversion of debt to equity or distressed investing
* Inventory assessment and profiling
* Lease or mortgage debt – workout, restructuring, refinancing or abandonment
* Mismanagement in financial, operating, marketing, sales, human resources, and dealing with the priorities
* Operational constraints or inefficiencies
* Poor locations – retail or certain service firms
* Supplier relations and credit terms
* Sales analysis and relationship to actual or perceived problems or constraints on business
* Unexpected events including economic damage, casualty losses, public image crisis, legal matters, etc.
At the conclusion of the CBS a written or oral report is generated that provides the situational status of the business and the practical realities to effect needed change. As opposed to coaching that collaborates in development of a plan and encouragement for an owner, principal or executive to take charge of the process, the CBS is a precedent for the consultant to execute upon a workout, turnaround or business recovery plan that may include specific individuals in management. The CBS can be a terminus point or continue into a Directive consulting engagement.
