10 things to do if your business starts failing
Justin has got a wonderful business idea that has got him excited. Justin decides to venture into his business idea.
He draws his business plan, raised the needed capital, got his business registered, and started running his business fully.
Justin started making huge profits and expanded his business. Exactly two years later, Justin realized that things are no longer going as planned.
Things started going south. His business started struggling, he started losing customers, revenue is forthcoming, customers no longer pay on time, he is having trouble paying his workers.
It finally dawned on him that his business was failing. So many entrepreneurs are just like Justin, they get to that stage where their businesses start to fail.
Nothing seems to be working out. If this is the current state of your business, do not lose heart, there is light at the end of the tunnel.
There are certain things you can do and should do if your business is failing. So, here are ten things you should do if your business is failing…
10 things to do if your business starts failing
1.Check your Product or Service
The first step to take when you notice your business is failing is checking the service you are rendering. Assess if there is still a demand for your product or service. Just because you ‘feel’ there is a need for your service or product does not mean there actually is one.
Reassess your market, conduct surveys, and find out if the demand is still high. If yes, then you check your marketing strategies. However, if there is no longer a demand for your product, you should think about upgrading or providing a whole new service that has market demand.
2.Cut down on your Expenses
The next step to take when you notice your business is failing is cutting down on your expenses. You have got to trim the fat as the butchers would say. This might be a little hard to do, but it is the number one thing you should do if your business starts failing.
Do a review of your company or business expenses. Fish out the ones that are you can do without and get rid of them.
It could be a postponement of maintenance, delaying bills that do not need to be paid promptly, reducing supplies of some products, or wherever you are spending huge bucks on that is not all that necessary.
3.Spread the Word
The next step to take when you realize your business is failing is spreading the word. Make your workers know the situation of your company.
They might already have an inclination as to what is going on, but opening up to them is important.It helps in creating trust and you could also get some insightful ideas from them on how to move your business forward.
4.Reduce your Workforce
Reducing your workforce is also another thing you can do if your business is failing. Reassess your workforce, differentiate them into groups, the ones who are not beneficial to your company, or you can do without, let them go.
It is important to cull your workforce in order to be able to maintain the best. This is because when you try holding on to a large workforce when your business is failing, you find it difficult to pay salaries and you might end up losing your best employees as they would go seek for employment elsewhere.
5.Reassure your Clients
Another important thing to do if your business is failing is to reassure your customers. Make them know you are having a little crisis and you have got a plan in place to curtail the issue at hand.
Calm their fears and make them understand that you are not closing up anytime soon. This helps in preventing them from going on to your competition.
6. Re-target your Market
One reason why your business is failing could be that you are focusing on the wrong target market. In such a situation, you should change your target market, try reaching out to new customers, and try changing your clients. This could help your failing business.
7. Reach out to Customers
If your business is failing as a result of you losing customers or clients rapidly, then one thing you need to do is reach out to your customers.
Find out the reason they are no longer satisfied with your service, get their opinions and advice on what you could do to serve them better.
Try as much as possible to apply the advice gotten from your customers as this is an important thing to do if your business is failing.
8. Cull your Clients
This might look out of place but another thing you can do if your business is failing is culling your clients. Assess all your clients, get rid of the least profitable ones.
It is actually better to have just ten customers or clients that yield your profits than having a hundred which do not pay or find it difficult to pay for services rendered.
So, if you have got some of these clients that are actually costing money rather than making money for you, get rid of them.
9.Search for Alternative Funding
If your business is failing, it would definitely be hard to get a loan or financing from the bank in order to try resuscitating your business.
Hence one thing you should do if your business is failing is a source for alternative funding. Ask from friends or families who can help raise cash for you to get your business off the ground.
10. Cut your Loses
This is the last resort if your business is failing. If after trying and putting so much effort into trying to resuscitate your business, nothing is working out.
Then it is better to cut your losses. Evaluate your assets, sell them individually or collectively, think of a new business idea, and start up immediately.