We have discussed a number of turnaround example throughout this chapter, such as the opening profile on Kabloom, Bankrate, and the Cork and Olive Store. All were faced with declining sales and earnings that either resulted in bankruptcy. What we have learned from successful examples of turnarounds is summarized and discussed in the next few paragraphs.
During a business’s life cycle it is likely that an entrepreneur will face adversity, perhaps because of external factors (the economy; competition; changes in consumer needs; technology; or unpredictable acts such as war, terrorism, or weather); or the adversity may be self-inflicted (that is, due to poor management). The severity of the adversity can result in bankruptcy or in a need to refocus the business and strive for a turnaround. The process of turnaround can take many directions, but there are some basic principles and support that can be considered to help the entrepreneur