Sticking It Out with a Struggling Business
Keeping a positive attitude and healthy mind is paramount when faced with a struggling business. The good news is consumer confidence in Australia has increased another 3.7 percent in July 2012, meaning people are happy to spend money and are making more purchases. With a positive attitude and some expert tips, you can save your business from insolvency and shutting up shop.
A debt workout
Companies shouldn’t hesitate to contact an insolvency practitioner if they’re experiencing financial hardship. It’s not the final nail in a business’ coffin as some believe.
- Business owners must investigate the opportunities available to them, including some form of financial restructuring.
- Don’t scrimp on debt recovery solutions; it’s cheaper to bend than break.
- A debt workout can be a game-changer. Defaulting and the likely ensuing foreclosure, concluding in total loss, is a recipe for chaos.
- You need to clear out the old vegetation before you can grow anew.
- Removing the debt from the business and reducing the personal guaranties to affordable losses can allow you to operate the business at given revenue, giving you the freedom to make necessary changes to succeed.
Does my bum look fat in this?
Just as tricky as it may be to answer this one, you need to ask those around you what they really think your business needs.
- If your business is suffering and you’d like to know why –ask.
- Hold more staff meetings and send out consumer surveys via your website, Facebook, Twitter or newsletter.
- Your staff and customers can provide good insight and suggestions because they’re looking from an ‘outside-in’ perspective and will likely give you food for thought that you hadn’t considered.
Regain your focus
Studies show one of the main reasons why businesses fail is because they started for the wrong reasons and when a foundation is shaky, it’s hard to build anything on it that’s solid and lasting.
- If you did it because you had something to prove, that’s not the best kind of motivation.
- Businesses should be created as a way to provide a product or service that’s needed. If you’ve lost sight of that, get back to your original vision to figure out what should be done.
- Whatever it is that your company offers, take a moment to think about the things that you do really well, what competitors already exist in those markets and restructure from there.
Examine your marketing strategies
Cash is down but struggling companies can’t afford to scrimp on marketing. It’s how you attract customers. You can maximise your marketing budget by using targeted messages such as advertising in local newspapersor social networking strategies like Facebook and Twitter.
Saving a struggling business is nothing to be ashamed of or embarrassed about. Everything in life requires transition in order for it to flourish and grow.