It's a lot better to put fuel into a car that has wheels to drive.
In a turnaround, everyone talks about boosting sales.
But in most cases, that’s not the real priority. The first thing that has to change is gross margin.
Struggling manufacturing businesses in Sweets and Snacks often face the same issue: factory-related personnel costs exceeding 25% of total revenue.
That’s a clear sign the machine isn’t working.
The common intuition is: “Let’s just sell more. More sales = better utilization = problem solved.”
But that’s not how it works.
If you push more volume into a system that’s already broken, it doesn’t improve — it collapses. You simply make the dysfunction bigger.
So the real work starts before any revenue push:
- Fix the manufacturing processes
- Reduce complexity
- Streamline the product range
- Build the right culture and leadership around the operation
Only once the machine runs smoothly should you step on the gas.
