A second-generation business in flooring and carpet was doing quite well. They grew to a sales volume of about $20 million per year with nearly 100 employees. The brothers who operated the company are approaching retirement age, have received a good salary and have done well themselves. The company has a great reputation and very high market share—particularly in residential new construction. Unfortunately they are located in an area that has been hit extremely hard by the recession. New construction has come to a halt. Builders are not paying. Accounts receivable have skyrocketed and their volume is half what it was the year before. They have taken steps in laying people off and trying to control costs but it seems that whatever they do it isn’t enough. They expect things to turn around but it could take another year or two.
Post in the comments the recommendations that you would make for immediate, short and long-term actions.
Note—all case studies are fictional and any resemblance to an existing business is coincidence.