Not all businesses succeed, well not initially at least anyway. One of the greatest achievements for any business person is turning around a failing company.
The nature of the business beast is that trials and challenges are a central part. There will be a time when any business comes to a forked point in the road and has to make a decision that will either lead to success or the trek to failure.
People make mistakes and choosing the wrong road will result in a failing business understanding how to turn this around is a must. So, without further ado – here’s how you can salvage a failing business.
Mindset, a positive attitude
One of the biggest challenges folks that end up with business issues face is how to remain positive. How you deal with a failing business will have a big impact on how things progress. The first thing you need to do when looking to change the business is to improve your attitude and change your mindset. Set positive but focused and realistic goals that you think are achievable. Not only do you need to remain positive for yourself, but also for maintaining and improving the morale of the staff – without them on your side a turnaround will be impossible.
Be Honest with yourself
Being honest with yourself will also help – if you’re not sure what the issue is exactly or aren’t honest with yourself about the problems, you can’t solve them. It may be hard to take a reality check but it’s a necessity if you want to push your business in the right direction. I can’t tell you how many times I have seen business owners bury their heads in the sand or just be completely delusional. The truth may hurt but without it, there will be no future!
Planning is essential
Fail to plan, prepare to fail. That’s the mantra of the scouts and it should be yours too. Stabs in the dark will be unlikely to make a true difference to a business. Plan in a meticulous and cautious fashion on how to get from A – B – C. Planning sets up success and also means you have the opportunity to see a realistic way out of the mess.
Money management
Of course, the result of a failing business is a money shortage and this means that you need to make cuts where they can be made. Being cautious and meticulous about where money is being spent will be a significant help and help contribute to success. Find out where money is being leaked and focus on cutting needless costs.
Turnaround Finance
When your business is visibly suffering from financial problems you need a specialist lender who understands your situation. In times of financial distress, adverse credit is almost a given and this will make support from most lenders impossible. Working with a funder who deals with businesses like yours will provide the necessary funds to steady the ship and get it back on course. You can read more about how business finance can help rescue a failing business here.
Look for a Business Partner
The power of two minds is double that of the power of one mind (especially if it is someone who has suffered similar problems in the past). Your business will achieve a lot more with the help of another person or a business partner than it will with just you alone. You need to find someone who can help provide advice, investment or supplies to your business and help to turn it around. Often outsiders can see things you never would and can make a huge difference to the way a business is run and in turn whether it succeeds or not.
Profit often Means Fewer Clients
Every business has clients that they took on that cause a lot of heartaches, but offer little in the way of profit. For a lot of failing businesses, these clients are time heavy but don’t result in much profit. Raising prices or letting these clients go can often be a good call and help a business succeed. Instead of tying your business down to these clients, you can focus more on high-paying, quality clients that are loyal and beneficial to your business in the long term.
Staff Make a Difference
Employees make and break businesses and you need to look around and evaluate who is pulling their weight and who isn’t. If your workforce is not working for you then this can be at the root of your troubles. Entice employees to meet goals and replace those who don’t.
Morale Matters
Businesses thrive on quality employees and every one of the people working for your business has potential. They can offer ideas, and help and will work to turn your business around if they’re highly motivated. There are a number of ways to encourage people to give more – these include:
- Increasing Salaries
- Offering reward programs
- Bringing them close to you and teaching and helping them to help you
Customers Matter
Your customers are the centre of your business and you really want them to support you, otherwise, there is no hope. There are numerous ways to encourage your customers on the side and to get them to provide you with constructive help. Here are some ways to do so:
- Ask them to be open and provide feedback on your products or services
- Ask them to provide ideas for services or products they would like to see from your business
- Honesty is important here as is a positive mindset. They may tell you things you don’t want to hear. However, paying attention to these things can save your business.
Be Open to New Ideas
So many businesses are paralysed by failure and because of this, they tend to end up like a rabbit in the headlights. Failure can be the first step to success and embracing it as an opportunity to try something new can often lead to greater successes than you imagined.
Turning around a failing business takes time, effort and open-mindedness, however, it can be done with the right attitude.
So, if you have a business that’s in the doldrums or has taken a downturn then these tips can be a huge help to it and provide it with opportunities to get back on track.
So, if you want help turning your business around, why not get in contact with us – we’re experts in the area and we’d love to help you out. Call us today on 03330 069 141.
