Every business has its ups and downs, and the ones that succeed in the long term are those which take action during the tough times to get back on track.
There are lots of solutions to seemingly insurmountable problems, so here are just a few options to consider if your company is on the ropes.
Admit There’s An Issue
Pride can be a problem when your business is struggling, as you might not want to face up to the deluge of dilemmas lapping at your doorstep for fear that making this admission will bring your worst fears to pass.
It’s better to be honest about your current circumstances, rather than hoping for some miracle to come along and save you. That way you can start to work out what’s wrong, whether that’s untenable business debt or anything else, and find a way to fix it, rather than being paralyzed by denial.
Determine Targets You Need To Hit
A business without goals is like a boat without a rudder. You’ll be drifting aimlessly, uncertain of where you’re trying to get to.
Establish achievable targets to start plotting a course out of your dire straits, whether that’s winning over new customers, hitting a certain sales milestone, or reducing expenditure by an amount that will benefit your cash flow.
Find Out What’s Keeping Customers Away
You won’t be able to hit the targets you set if you don’t look into what’s holding you back in the first place.
Often it’s a lack of customers that hurts businesses, and changing this is as much about customer retention as anything else.
If previously loyal customers are leaving you, find out why and you’ll know what you need to remedy in your operations to avoid further hemorrhaging.
Make Sure You’re Getting any government aid you’re entitled to, e.g. Employee Retention Credit
There are many support programs available to businesses that are up against it, including the Employee Retention Credit (ERC) scheme which was introduced during the pandemic.
Going through the ERC application process can be tricky, but the benefits of getting approved are significant, and will allow you to minimize your tax burden while retaining employees so that you can keep operating as normal.
Drill Down Into The Numbers
There’s no question that businesses can fail because of external factors that are entirely beyond their control. But it’s also more common for the failure to come about because of internal issues, and finding evidence of these is only possible by going over your finances with a fine toothed comb.
There are all sorts of snafus that you could find in the figures, whether that’s a lack of liquidity leading to snarl-ups in spending, a proliferation of borrowing that puts you at a disadvantage because revenues haven’t yet caught up, or a budget that’s out of date and doesn’t mesh with your current circumstances.
If you don’t have a permanent finance professional on your staff, working with an independent expert to unpick the riddle of your finances is wise.
Secure Additional Funding
You can’t solve financial snafus in the short term just by growing your customer base, as this typically takes time. So to tide you over, you’ll have to look for a different way to fund your operations if your cash flow is restricted.
There are a few choices at this point. You could put your personal savings or other assets on the line, which isn’t ideal. You could borrow from a bank or other lending entity, which will increase your debt burden but may be the only alternative to closing for good. You could court investors, selling off a stake in your company for a cash injection at the right moment.
Again, if you’re not sure how to move forward at this point, as an expert to advise you. Every business is unique and there’s no right answer for all organizations.
Pull Out All The Stops To Promote Your Offerings
Finally, you will only be able to make your business work if people know about it and are interested in your brand.
Modern marketing solutions make it easier to engage large audiences and get your name out there, even if you’re a smaller player.
Rethinking your marketing strategy and trying new things at a time of crisis is worthwhile, because the payoff could turn things around.
Final Thoughts
In short, inaction is your enemy when your business is struggling. You can’t sit there and do nothing, because that will guarantee your situation gets worse. Rise up and rethink things to sidestep disaster.
Ella Marcotte
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