The business you’ve built from the ground up is on the brink of financial meltdown and you’re almost out of options. Do you throw in the towel and find another career path? Or do you stay in the fight and hope for the best? The choice is yours. But if you decide to keep going, here are some tips to help your company bounce back sooner than later.
1. Face the facts
If you want to get to the root of the problem, you have to face the facts. Chances are you didn’t wake up one morning and realize your business was on a downward spiral. There were operational or financial issues all along. And you were either too busy to recognize was going on or underestimated how bad things were. Either way, it’s a must that you stare reality in the face and figure out what got your company to this point. That way, history won’t repeat itself.
2. Don’t play the blame game
When you’re scrambling to stay afloat, it’s easy to point the finger at others. But now’s not the time for that. Even if others played a major role in the demise of your company, don’t get hung up on the past. Focus on the future and how great your company will be once you weather the storm.
3. Take a look at your company’s financials
As a small business owner, it’s critical that you keep an eye on your company’s finances. You need to have a pretty good idea of what’s going in and out to ensure you stay in the green. But when business gets hectic or life happens, it’s easy to put the financial review on the back burner. So, take some time to analyze sales and expenditures to identify problem areas. And if you haven’t already done so, start using accounting software.
4. Develop a “recovery” strategy
Now that you’ve gotten to the root of the problem, it’s time to develop a recovery strategy. You’ll want to list key objectives along with estimated dates of completion. When doing so, set realistic goals to avoid getting overwhelmed or discouraged.
5. Curb excessive spending
Your business financials aren’t the only numbers you need to crunch. To recover, you’ll need to take a look at your personal budget and curb excessive spending. Also, consider placing some of the money saved back into your business to get things up and running again.
6. Analyze current offerings
Are you offering products and services that aren’t driving a large amount of sales? Are there certain ones that perform better than others? Which products and services have the highest profit margins? These are a few of the questions you want to ask yourself when analyzing current offerings. Push those with the highest conversion rates and profit margins. And cut those that aren’t performing.
7. Raise prices
Is it time to roll out price increases to boost profit margins? It can be hard to tell, but you can research what competitors are charging to get an idea. Your business may be struggling because the price points aren’t enough to cover operating costs. Or maybe you’re charging far less than what you’re worth.
8. Amp up marketing efforts
Money’s tight, but that doesn’t mean you should stop getting the word out about your company. At this point, you need all the attention you can get. So, use every opportunity you have to promote your business online and in-person. And don’t forget to reach out to current and former customers to inquire about other needs they may have. You never know what upcoming projects they may have brewing that they’re waiting to hand off.
9. Borrow money
As a last resort, you can borrow the funds you need to jump start your recovery. You can lean on personal sources, like friends and family, to get the cash you need. Or you can take out a personal loan. Don’t know where to start? Check out these Upstart.com personal loan reviews or visit your financial institution to explore other loan options.
Sounds a bit strange considering all hell is about to break loose. But shutting down or driving yourself into panic mode and anticipating failure is not the way to go. You’ve worked too hard to not fight for your company. And acting without thinking things through could lead to even greater headaches.