Many businesses face moments when growth slows, models feel outdated, or teams lose energy. Starting a company from scratch is exciting, but improving one that already exists can often bring better and faster results.
A business turnaround focuses on fixing what slows progress, building on strengths, and making changes that set the stage for steady growth.
This approach helps leaders protect what works while guiding the company toward a stronger future in today's market, where change is constant.
Barrett Young talks with Ori Elraviv, COO at MediaFeed has spent nearly two decades leading such work. He began his career in China in 2003, stepping into his first CEO role in mobile gaming and guiding teams that worked with Electronic Arts, Disney, and Sony Pictures.
Later, he moved into digital media and ad tech, turning a struggling email marketing company in Serbia into a profitable business within a year.
He then helped form and lead Literally Media, the publisher of eBaum's World, Cheezburger Network, and Know Your Meme, coordinating teams across San Francisco, Seattle, and Brooklyn.
After serving as CEO until 2022, he works with small and medium businesses as a hands-on advisor and shadow operating partner, focusing on sustainable growth and clear execution.
In this article, we will learn from Ori's experience. We will explore why improving existing businesses often makes more sense, how leaders can identify what needs to change, and why people remain at the center of every turnaround.
We will also see how balancing stability with new ideas creates long-term strength.
Why Business Turnaround Can Be Effective?
Starting a business from zero can be exciting, but improving an existing one often makes more sense. A company with systems, staff, and customers provides a strong base.
Instead of building every part, the focus can be on fixing what slows things down and improving what already works. This makes progress faster and easier to measure.
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Benefits of Improving Existing Businesses
Ready foundation: You do not spend time or money building the basics.
Room for adjustments: Small changes can improve results without major risks.
Cultural stability: People and teams are already in place to build on.
Faster results: Fixing weak points can show progress much sooner.
Role of Specialists in Business Turnaround
Turnaround work is not always about saving a company in crisis. The issue is often slow growth, an outdated model, or low morale. A specialist looks for the main points that affect progress. The business can start moving in a better direction by making clear changes in these areas.
Example of Sustainable Change
A common step is moving from one-time sales to steady income. For example, a business selling lifetime licenses may switch to monthly fees. This change creates ongoing revenue and allows for updates and better service. While some customers may not like it, the model ensures long-term stability.
Why This Approach Works
Working with existing businesses saves time, resources, and effort. It also gives leaders a chance to improve without tearing everything down.
Companies can adapt, grow stronger, and keep people engaged with the right focus. This balance of respect for what exists and smart change makes lasting progress possible.
Getting Everyone on Board in Business Turnaround
Turning around a company is never only about systems or strategies. The biggest challenge is people. Some employees welcome change and bring fresh energy; others resist or feel too tired to continue. Leaders need to see this clearly and make the right choices.
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Keep the People Who Add Energy
A business becomes stronger when employees feel motivated and supported. The ones worth keeping are those who:
Stay open to change and learning.
Inspire others through their attitude.
Show real excitement for the company's future.
Working with people like this lifts the whole team and creates a positive culture.
Address Resistance the Right Way
Resistance is normal, but leaving it unchecked hurts growth. Leaders often sense early when someone will not adapt. Acting on that feeling is better than waiting too long.
Removing someone from a role is not about punishment. It can also help that person find a role where they feel happier and more effective.
Prepare Before Making Tough Decisions
Acting fast does not mean acting without care. When it is clear someone must move on, leaders should prepare:
Plan how the message will be shared.
Decide who needs to know.
Keep communication clear and respectful.
This preparation keeps the process fair and avoids confusion across the team.
Build a Culture That Supports Growth
A successful turnaround balances energy and clarity. Leaders keep people who inspire growth, deal quickly with those who block progress, and directly explain decisions.
When employees feel valued and change is handled with fairness, trust grows. Over time, this creates a stronger culture where the company can confidently move forward and achieve steady results.
Getting Up to Speed in Business Turnaround
When you enter a new role, your first goal is to understand how the business works. This means looking beyond numbers on a sheet and asking what creates them. Where does the revenue come from? What expenses support it? What trends shape the results?
Once you see the financial picture, you turn to the company's people and the wider market. These three layers, finance, people, and market, show the real state of the business.
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Setting the Next Direction
Clarity on the basics makes planning much easier. The next direction should reflect three things: the company's current abilities, the market's realities, and the people's appetite leading it.
A yearly roadmap supported by quarterly goals works well. It shows the team what matters now, what can wait, and how each step connects to the bigger picture.
Spotting What's Broken
High costs do not always mean waste. Some spending is vital, such as keeping skilled people or investing in benefits that help teams stay motivated. The real question is whether the cost brings value.
Leaders can ask:
Does the output match or exceed the spend?
Are teams tired or unmotivated, reducing results?
Is the extra quality worth the higher cost?
Often, the answer is not exact. It comes down to judgment, experience, and the leader's style.
Balancing Stability and Innovation
A strong company must protect what works while still trying new ideas. Expecting the same people to maintain stability and also create breakthroughs rarely works.
Operators are best at running the business, while those who thrive on fresh thinking should form small teams to explore. This balance keeps the company steady today while opening the door to growth tomorrow.
Business Turnaround in Small and Medium-Sized Firms
Turnarounds in smaller businesses bring their own set of challenges. Unlike large corporations, these companies often have founders who remain at the center of operations.
Their involvement adds passion but can also create limits. The goal is to build the right environment where meaningful change can happen without constant restrictions.
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Conditions for Effective Business Turnaround
For change to last, a few conditions must be present:
Time and patience: Real improvements need months, not weeks.
Freedom to act: Leaders must have the space to make decisions.
Committed people: Teams must care about the business and want it to grow.
When these basics are missing, even strong plans may fail.
Working Alongside Founders
In many cases, the founder is both the strength and the bottleneck. Their drive built the business, yet the same habits can hold it back. The solution is not to push them aside.
It is to work with them, clear the clutter, and highlight what truly matters. Helping them focus on essentials and letting go of distractions brings new energy to the company.
Staying True to Leadership Style
Every leader has a way of working that reflects who they are. A business often mirrors that style. For a turnaround to succeed, leaders must stay true to their approach and bring in people who fit that culture. Consistency builds trust, while clarity sets the direction for growth.
Ultimately, successful turnarounds in small and medium businesses depend on focus. Knowing what matters, removing noise, and creating space for people to grow leads to stronger, lasting results.
Conclusion
A business turnaround works best when leaders focus on simple, clear steps that bring real change. It starts with understanding what slows the company and improving what works well. This balance saves time and creates steady progress.
However, turning around a business is not only about numbers or systems. People play the biggest role. Teams that feel valued and motivated push the company forward, while resistance often holds it back. Leaders who act fairly and clearly can keep trust strong even when tough choices are needed.
Moreover, lasting results come from both stability and fresh ideas. A company must protect its strengths while also giving space to new approaches. Small changes, when done with care, often lead to steady growth.
In the end, the success of a business turnaround depends on focus and patience. Leaders who respect the foundation, support their people, and act on clear priorities create a stronger path forward. With this approach, businesses can recover and build lasting strength for the future.
FAQs
What is the first sign a company may need a business turnaround?
The earliest sign is often slowing growth despite steady effort. Other signals include rising costs, low morale, or outdated practices.
How long does a typical business turnaround take?
Most turnarounds take several months to a few years. The timeline depends on company size, resources, and the depth of issues.
Can small businesses benefit from a business turnaround as much as large ones?
Yes, smaller firms often benefit faster. Decisions move quickly, and even small changes can bring visible results.
Who usually leads a business turnaround?
It may be the existing leader, an outside advisor, or a turnaround specialist. The key is clear authority and space to act.
What role does customer feedback play in a business turnaround?
Customer feedback helps identify weak points. It shows where services fall short and where improvements can boost loyalty.
