If you’ve known us for a while, you’ll know we like to clarify the meaning of the words we use. So, let’s start by defining recovery and consolidation : two very different activities, linked only by their sequence in time.
- Recovering a business means identifying one or more “illnesses” that must be treated, sometimes through decisive action, in order to move the company into a safer, more stable dimension.
- Consolidating a business means defining, strengthening and reinforcing its core processes so it becomes capable of sustainable growth and profitability in a healthy, stimulating environment.
Recovery: removing the obstacles
It’s a bit like deciding to run a marathon with no prior preparation. The first step is a medical check-up to understand whether there are joint misalignments or mobility issues that must be addressed before placing the body under the stress of running 42 kilometres.
Attention is paid to foot positioning, ground impact, stride timing and spinal alignment. These assessments provide valuable guidance on the right shoes, the right routes and the right type of training.
If muscles lack elasticity, a stretching programme may be required, perhaps supported by physiotherapy. If the mechanics of movement are inefficient — or if congenital issues or other pathologies exist — therapy or even surgery may be necessary.
This mirrors what happens in a business recovery process: through an in-depth analysis of the numbers, the organisation, the entrepreneur and the leadership team, we identify the actions required to make the company healthier, more efficient and more effective, removing obstacles, unnecessary processes and sometimes harmful behaviours.
Recovery can be painful, but it is always liberating.
Recovery is a delicate activity. If a company needs it, it’s not because the entrepreneur is incapable or the leadership team unreliable. It’s because some decisions are simply too difficult to take from the inside. Others are almost impossible without an objective, external overview.
That is why recovery cannot be conducted internally. It requires external intervention.
And that intervention is not only necessary (because if you keep doing what you’ve always done, you’ll almost certainly keep getting the same results), but often deeply liberating — like removing an ingrown nail: painful in the moment, but followed by enormous relief.
Consolidation: expanding what works and changing what doesn’t
Only after recovery — literally in a later phase — can consolidation begin.
A common distortion occurs when companies attempt consolidation WITHOUT first recovering. Unfortunately, this never works:
- If you don’t treat the problem, it will infect the healthy parts of the company and block growth.
- If you consolidate without healing, what grows is the illness, not the healthy structure.
There are countless examples of industrial plans that failed because they focused on doing new things before understanding internal weaknesses. Perhaps your own strategic plan has stalled — or remains a thick report that cost a great deal but changed very little.
In a sharp observation found in Wiseman's book "The Foundations of the Entrepreneurial Mindset" we read: results come from actions, but changing actions alone is not enough to achieve better results — because actions originate from ideas. It is wiser to intervene at the level of ideas. And if the ideas are flawed, the results cannot be satisfying.
A tough rule, but a true one.
Consolidation is only possibile after recovery.
And its pillars touch every operational area:
- production, which must gain flexibility and efficiency;
- commercial activity, which must expand reach while protecting margins;
- organisation, because great results require great people;
- administration, because growth is built on strong numerical awareness and performance indicators.
Saving a struggling company is possible.
But recovery and consolidation are not a gentle walk. The journey can be long, demanding and sometimes painful.
Anyone who feels they cannot face it alone can always seek advice by clicking here, or speak with a partner, free of charge, by choosing a date and time here..
We cannot avoid growth: either you grow, or someone else grows in your place.
If you haven’t acted yet, now you have the opportunity. Taking it is up to you.