Statics show that around 60% of entrepreneurs find it difficult to keep their business intact. Thus, mostly startups get failed during the first 5 years of their operations. Do such businesses fall down overnight? The answer is: NO!! The truth is, when you take a closer look, it is quite evident that there are a few signs that occur months before the real breakdown. But, unfortunately, business owners don’t pay attention towards such activities and finally, the mishap happens.
So, pay keen attention to your business from the very first day. And whenever find anything suspicious, take action. However, when you find any negative signs within your business, don’t panic because that time can be utilized to seek strategies and restore your failing business. How to understand the signs?? The signs can be any of theses: reduced innovations, paused growth, mismanagement of cash flow, and others. If you successfully pick out such signals on time and work upon them, then you will not immediately but can gradually make your business stable and strong.
Plenty of business owners usually don’t understand taking a serious step against each problem separately. Instead of trying multiple hasty steps altogether to get their organization back on track, all they need to do is breathe a new life into dying business to jump start it all over again for greater success. To help you go through the rough business path, we are here to help you out!
Go scroll down to understand 6 most effective ways to turn around your dying business:
1. Asses Critical Situations
To treat an ailment perfectly, the first step is to accurately diagnose the problem. The same process will be needed to follow in order to revive your business.
So, if your business is going through a rough patch, then it’s time to look within your organization and point out the negative aspects that are dragging it down. We understand that self-assessment is an extremely difficult task, especially when it’s small or closely held family business, but at the same time, it’s a necessary exercise to keep your business safe. Once you identify the problem then it’s easy to develop an action plan that will address the core of the issue and eventually help you get rid of it.
- Is the business focused on the right things?
- Does the business have a direction?
- Does the business have sufficient cash flow to sustain operations?
- Who are your clients or buyers?
- Are your customers loyal, if not, why?
- Are you offering an innovative product or service?
- Where do new customers come from?
- Are your customers satisfied?
- Are you focused on marketing to profitable customers vs. unprofitable ones?
- Do customers know who you are and trust you?
- Is your business competitive and profitable?
Undoubtedly, there can be a number of reasons for the failure of a business. Sometimes the issue can be changed in markets, and your business might not be ready to adopt the change. Other times, competitors play uniquely or smartly to take away your customers. So, there can be multiple reasons as we mentioned earlier; all you need to do is to spot the one affecting your business growth and focus on resolving it.
You can also go through your sales data, customers’ behavior, employees’ performance, and other aspects of business operations by going through the data saved in your ultimate POS Solution.
However, it’s not easy to be objective and find your business’s problems, but if you can think and obtain few reasons that have been affecting your business, then you will be able to focus on your revival efforts.
2. Change Direction or Revamp Your Business Model
The change or modification sounds easier than doing, but mostly it works wonders for businesses. For some business owners changing the business model is enough, on the contrary, for others, taking an entirely different vertical or even changing the target customer works best.
We know that changing the business model in an alarming situation is the most challenging strategy in order to save a sinking business. For business owners, who are already finding it miserable to manage company expenses, so adapting the whole plan can be a daunting task. However, still, it can be a useful technique for the constancy of your business.
Tho, in case of changing a complete business direction, you might also need to sell different products – this scenario often happens when business owners didn’t finalize their business concepts before its launching.
No matter what idea you pick, make sure carrying out a close analysis of what will work your business and what not, and consider making those drastic changes. For example, the brand Wrigley’s Gum didn’t start out with selling gums. Instead, they took started selling out soaps in the start, then they tried baking soda, and eventually settled their business on chewing gum – and these all changes are caused by customer demand.
There is a number of examples of business owners who took the right decisions and acted on time by changing the business direction or model and yes, they survived the failure.
3. Drop the General, Opt for Uniqueness or Stay Focused
Understand that if you try dealing in too many things, you end up stretching your business to thin. Usually, the lack of focus towards the uniqueness of your product or service means you are doing so much while having limited resources, which in result will lead you to minimum profits.
If you aren’t holding unique products then try keeping particular niche products it means you are targeting a niche that is too broad. So, if, in case, you are targeting everyone in the market then it is similar to targeting no one. Hence, it is advisable for you each business owner to be specific with your customers and their demands. It is a fact that you can’t be the best at so many things – so, all you need to do is find your footing in a niche and focus on it.
4. Cut Down Costs
Ripping the costs off is mandatory when you in charge of saving your business. You can do it by cutting down your costs to a minimum level by closing locations, or sometimes, even the whole business on a temporary basis to keep it going.
You can do it smartly by focusing on cutting down costs of the areas that are major portions of your expenses, for instance, you can rely on using outsourced or temporary employees to cut down the labor costs. This is how you can take actions within each department of your business to keep it alive.
5. Design Brainy Marketing Strategies & Plans
In order to save your business, revamping the marketing plan can work greatly. To do this, you will need to sit with your marketing team to focus on renewing and reviving the strategies and plans that can keep your revenues from vanishing.
Most of the businesses fail when they can’t fulfill the needs of their customers as they are the life-blood of any organization. Thus, it is essential to revitalize the marketing strategies that can make you go back to your customers where you can understand their current mood and try to understand their needs. After knowing their feedback about your services or products, ask them about how you can supply their requirements. This practice is valuable for every business but it becomes necessary when your business is going towards failure.
To keep your customers’ data and other business operations perfectly maintained to optimize your customers’ needs and their likeness, you can rely on using 14 days free trials of cloud-based POS System. The solution will let you learn your customers’ behaviors.
However, refresh your marketing strategies while retargeting your customers’ wishes. There are plenty of ways to do it, but one of the inexpensive ways can be done by sending a direct e-mail. By doing this, you can also get connected to reach out to new markets and new customers. Other methods that can efficiently work in this case are marketing over social media where you can interact with the users, employing search engine marketing, and etc.
6. Don’t Play it Safe, Be Bold & Take Risks
Most business owners play it safe in the time of crisis, whereas, taking bold risks is the best and the most useful option to save your business. In fact, for any company which is sinking, there is generally very less to lose.
It’s better if you try all your ideas at this moment; you never know which one hits and becomes a business saver. At this stage, where your business is in trouble, don’t sit behind, be proactive and take action. Make extra efforts and do whatever you can before things get any worse.
Don’t Lose Hope, Just Give Your Best
All entrepreneurs face difficulties and challenges in their businesses, but being able to turn around a failing business by increasing the footfall to your store and retail is the best thing you can do. However, even if after multiple efforts your business fails, don’t get disheartened, take it as a learning experience and start all over again.
If you have ever faced such challenges and dealt with them, do share your experience in the comment section below.