Silicon Valley Business School
Management Maneuvers—Restart
Shedding Excess Baggage and Restarting the Business

Progress will slow if the current team is weighed down carrying too many passengers and baggage from the past. When you feel your company starting to grind to a halt, wouldn’t it be nice to hit the ‘control-alt-delete’ keys, Shutdown and restart like you can with your PC? As you go about your daily business, your PC inadvertently accumulates tasks and processes that unnecessarily clog up its memory and processor, slowing everything else down. A good restart cleanses out all this junk and releases valuable resources for the use of your new applications. Similarly, in business you sometimes feel as though you’ve accumulated unwanted shareholders, creditors, disgruntled employees and all forms of unwanted baggage. Well, it can be possible to hit ‘control-alt-delete’ a couple of times, restart your business, shed the excess baggage with the back-seat passengers and start afresh. However, restarting a business is not quite as straightforward as restarting your PC—and if you get it wrong you can find yourself in the state penitentiary instead of the local PC repair store.

Warm Restart
A warm restart is a radical restructuring of the existing company that boosts momentum and releases valuable resources without losing customer contracts or other relationships. Although the maneuver involves sweeping internal changes, they can be imperceptible to customers and the outside world. The objective of a warm restart is to give the company a fresh lease on life without losing any existing market momentum.


Cold Restart

Cold restart is a corporate reincarnation that involves shutting down the old company, forming a new company and starting over.  The Cold Restart involves killing the old company and performing a miraculous reincarnation. In fact, the reincarnation is not very miraculous at all—it’s a surprisingly simple legal maneuver that law firms orchestrate on a regular basis. However, launching a new company is a difficult and time-consuming undertaking that involves rebuilding every component of the business. Restructuring and re-launching the old company, through a Warm Restart, can be a much less painful way of achieving a similar result.
Steps: Performing a Warm Restart
  • Win Investor Approval (Warm Restart)
  • Structure New Ownership & Control
  • Appoint New Board of Directors (Warm Restart)
  • Define New Business Strategy (Warm Restart)
  • Prepare New-Look Balance Sheet (Warm Restart)
  • Appoint New Management Team (Warm Restart)
  • New Employee Incentives (Warm Restart)
  • Internal Relaunch (Warm Restart)

  • Steps: Performing a Cold Restart
  • Shutdown Old Company (Cold Restart)
  • Form New Company (Cold Restart)
  • Appoint New Board of Directors (Cold Restart)
  • Define New Business Strategy (Cold Restart)
  • Prepare New Balance Sheet (Cold Restart)
  • Appoint New Management Team (Cold Restart)
  • New Employee Incentives (Cold Restart)
  • Launch the New Company (Cold Restart)

  • Steps: Performing a Cold Restart with Asset Transfer
  • Shutdown Old Company (Cold Restart-AT)
  • Transfer Assets to New Company (Cold Restart-AT)
  • Form New Company (Cold Restart-AT)
  • New Board of Directors (Cold Restart-AT)
  • New Business Strategy (Cold Restart-AT)
  • New Balance Sheet (Cold Restart-AT)
  • New Management Team (Cold Restart-AT)
  • New Employee Incentives (Cold Restart-AT)
  • Launch the New Company (Cold Restart-AT)
  • SVBS Learning Materials Related to this Maneuver ~ From SVBS Online Courses