by Lucy Jackson
If your business fails to take off the way you expected it to, or sales have become increasingly slow, it will likely be incredibly disheartening.
However, there are several things you can do to help save your business and start building a consumer base.
1. Identify reasons for the decline of your business
The first step should always be outlining any potential issues or mishaps that have caused the decline of your business. You will not be able to turn your business around if you don’t identify the root cause of the problem. This can be difficult as a business owner to disconnect yourself from the business and actually look at it objectively.
You should consider hiring a qualified practitioner who will be able to outline where things have been going wrong, as well as helping you make a plan to tackle these problems.
2. Understand your target market
When your business is failing, you should go back to basics and define who your target audience is and how you will outreach to them. It’s vital for your business to succeed that you know how to reach your audience effectively, as well as ensuring your products and services align with your customers’ needs.
As with many businesses, you may have lost sight of your key target market once your business started to grow. You should listen to feedback from your audience and engage with them, to understand what they truly want from you. You can then product your products and align your marketing strategy to suit the customers needs.
3. Manage your cash flow
Managing your cash flow more effectively is a sure fire way to improve the stream of cash coming into your business. Yourself, or hired accountants, should be managing the cash flow everyday, ensuring it is all up to date and accurate.
Slow or late payments can drastically drain your company’s cash flow. Being aware of your cash flow will help you know exactly what’s coming in, and going out. This will allow you to know exactly how much is in the accounts and when you may fall short. You will then be able to devise plans to increase your cash or reduce any costs before you are left out of pocket.
4. Reduce overheads
If your business is seriously struggling, you should seriously consider cutting overhead costs to eliminate unnecessary spending. These can include:
- Reducing company cars
- Ask for rent reductions, or a better payment plan
- Sell any none-essentials
- Outsource work with freelancers to overtime payment
- Take notes of your working hours to ensure you aren’t working over client budgets
- Ask suppliers for better deal and bulk discounts
5. Explore rescue options
If you are fully committed to saving your business there are a few options for you.
You could go into administration, which would mean an insolvency practitioner would take over the affairs of the business in order to reconstruct financial affairs.
If you feel like your business has passed its point of success and you are ready to start again with a new business, Insolvency practitioners will be able to assist you in liquidating your company, as well as providing advice for your next steps moving forward.
Lucy Jackson is a junior content writer and marketing executive for Tao Digital.