Phil MeekinView Profile
If your business is going through a difficult period of trading due to the loss of a customer or a downturn in demand for your products and services, it can be difficult to know how best to act to ensure your business survives and you don’t end up facing debt issues or insolvency.
Although it is likely to be challenging, there are a number of things you can do to try to get your business back on track. We have put together five tips to help you turn your business around if it is going through a challenging time.
However, if your business has been struggling for a long time despite rescue efforts or you are suffering from bad debts, get in touch with us as soon as possible. We can help you to deal with your debts and turn your business around or close it down to allow you to start afresh.
Cut costs where you can
Cutting costs can be tough because it can be difficult to know where to take money from but it can ensure that your business has the affordability to pay its liabilities despite a fall in sales or the loss of a client. Look at your budgets, balance sheets and statements to see areas of overspend to cut back on now to benefit you going forward.
Once your business becomes more stable, you may be able to bring some of these costs back such as networking costs or certain discretionary staff costs. Cutting costs can be one of the most difficult parts of a business turnaround procedure but it can be important to help your business to continue trading in the long run.
Find out what went wrong
Figure out exactly what went wrong and then use this within your growth strategy for the future of your business. On many occasions, a downturn in business is not a result of actions within the company and they may have come about due to external pressures which are out of your control but having this insight can help you prepare for similar situations in future.
There are always valuable lessons to learn which can give you something to aim towards avoiding in future. Don’t just look at the failures but focus on what you did well and what you’d like to continue doing so you can create an all-round plan which may help you become more prepared for the future and give you an idea of where to focus your attention to help turn your business around.
Do your managers have enough control of their team? Are teams fulfilling their purpose? Are there too many staff in one department or not enough? When your company goes through a difficult period it is always worth evaluating your staff and making sure the people you have working there are the best people for your company and that they are reaching their full potential in their role.
If people aren’t performing as well as they could be, it could be worth looking into training, moving them into another area of the company or looking at letting them go. You will need to ensure you have a committed team who are all working towards the same goal of helping the company to grow and succeed.
Stick to what you know but look forward
Work out what is profitable for your business and stick to building and growing this area to reap the rewards of profits and a steady client base. For some businesses, stripping your business model back to basics can be the key to helping turn fortunes around and get back on track.
However, it is always worth looking to the future of the business and for some businesses, diversifying or moving into a new area can help turn fortunes around. If demand for your products or services has fallen then it will be important to look into new areas to target whether it is creating new products, stocking different products or expanding your services.
Network, build up relationships, plan for your new direction and put in place a good marketing campaign to help your business transition into what will hopefully be a very prosperous future.
It is likely to take time to turn your business around whether you are launching in a different market or looking at improving your current offerings. Although, you will need to be aware of this and how it could affect the business’ balance sheet for the next year or so, it is always worth celebrating any successes you have.
From winning a brand new contract to securing a financing deal which can help your business expand, the celebrations are important to motivate you to keep working hard towards your end goal. It’s also important at this time to celebrate the successes of staff, particularly those that have stuck with you through this time, so they know that they are appreciated for all the hard work they do and to keep team morale up.