Lessons from curing zombies Allan McLeod, Senior Manager at restructuring & insolvency specialists mlm Solutions will look at ways to restore businesses to health: Repairing a zombie business Tools for a healthier future

1. The Business Journey
4 November 2014
@TheBusJourney #SMEJourney

2. Allan
McLeod
@TheBusJourney #SMEJourney

3. mlm Solutions
here to help calm the waters
mlm
here to calm the waters
Lessons from curing Zombies
Allan McLeod
mlm Solutions

4. The Zombie business
TITLE
Definition – a businesses which is burdened by debt,
generating just enough revenue to pay down interest,
but no realistic hope of getting itself into the black,
let alone making a profit.
FSB Scottish Members Survey –
• 47% of members borrow to ensure cash flow.

5. July 2013 -
TITLE
UK National Debt
March 2014 -
“At the end of March 2014, Public sector net debt was
£1.3 trillion
equivalent to 75.8% of GDP.” – Office for National Statistics

6. TITLE
UK Debt
“Public sector net debt was £1.45 trillion (79.9% of
GDP) in September 2014, an increase of £100.7
billion compared with September 2013.” – Office for
National Statistics, 21 October 2014
October 2014

7. TITLE
Reshape Reschedule Restructure
Our approach
Insolvency
Tools
“To provide a solutions based approach to financial distress,
using the wide and varied tools within our armoury.”
- mlm Solutions

8. case study – Project Eric
TITLE
Profile Distressed retailer selling high value essential products
Est over 60 years ago
Turnover circa £300k
7 staff
Issues Importer and distributor for the essential product until 2004
Business did not adjust and began to accrue debt
Directors then borrowed by re-mortgaging, personal credit cards
and loans from family and friends
Poor stock control
Declining share of market
“Gentle & caring approach”

9. case study – Project Eric
TITLE
Solution Restructure the business -
1. Deposits policy 2. Stock policy
3. Business governance 4. Implementation of KPIs
5. Sales & Marketing strategy 6. Debt reduction plan
7. Hive down 8. Succession planning
Outcome Cash flow immediately improved
Business now marginally profitable, and paying down debt
Directors personal debt being rescheduled via DAS
Previously technically insolvent, now restructured to pay debt in full
Business saved and Directors saved from bankruptcy
Directors’ home safeguarded

10. case study – Project Eric
simple tools to reshape any business for a healthier
future
Business Governance
“The system of rules, practices and processes by which a business is directed and
controlled.”
TITLE
• Set recurring meetings which attendees can not deviate from.
• Create a set agenda with a settled and recognisable structure.
• Spread the responsibility to others, to build engagement & effective delegation.
Implementation of KPIs
“A set of measures that a business uses to gauge performance.”
Sales & marketing strategy
“Understanding your client’s needs, and your client choosing you.”

11. Standing Agenda
Monthly (sales & marketing) Meeting
Date ____________
8am – 10am
Chair: Director / Manager / Meeting Organizer etc
Attendees: Attendee 1 Attendee 2
Attendee 3
Apologies: None
Please read: Last month’s action points
Sales & Marketing
8am – 8.30am
8.30am – 9.30am
Results
 Review of last month’s actions points
 Results – KPI report (see below)
 Budget
Next months projects & targets
 Competitor analysis.
 Brand awareness.
 Digital (website, apps etc) & SEO Update
 Pricing structure
 Customer charter
 Advertising, Media & PR
Who
Director
Manager
Admin
Dir
??
??
??
??
??
Operations
9.30am – 10am
Procedures
 Progress on procedures manual
 Other
??
??
KPI Report Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Stock levels
- Target 1,200 1,150 1,100 1,050 1,000 950 900
- Actual 1,152 1,142
Shop sales
- Target 40 40 40 60
- Actual 45

12. Monthly Sales & Marketing Meeting
Action points
Month : ____________________________
Present : Owner name, Manager name, etc
No. Point
Action
allocated
to
Agreed
date
1
2
3
4
5
6
7
8
9
10
11
12
Completed by Who?
Date issued Date?
Date reviewed _______________________________

13. TITLE
Reshape Reschedule Restructure
Our approach
Insolvency
Tools
Key messages –
• If it’s broke, fix it !!!!
• There is a wide range of tools at our disposal.
• Timing is critical, the sooner tackled, the better the result.
• Use your network. It’s your greatest free resource.

14. mlm
mlm here to help
calm the waters
here to calm the waters
Allan McLeod
07500 373715
amcleod@mlmsolutions.co.uk
www.mlmsolutions.co.uk

15. Questions for Allan?
@TheBusJourney #SMEJourney