It’s an unfortunate fact that most businesses run into difficulties at some point. Whether it’s an unpredictable downturn in the market or a bad decision on an executive level, as a business owner, you will inevitably have to deal with hardship at some stage in your career.
The true mark of success is not whether you meet with adversity; it’s how you face that challenge and whether you emerge from it stronger or defeated. Here are just some of the things you can do when your business falls on hard times.
Inject some of your own cash into it
If you truly believe in your business – and you don’t think it’s going to fail – then you could always put some of your own money back into it to keep it afloat for a short period of time.
If you don’t have the greatest credit rating (and believe us, it can happen to business owners as well) but you want a loan, you could always look into bad credit personal loans, which could be a good way of sustaining your business until things are looking a little more rosy.
You won’t make smart business decisions if you allow yourself to panic when your business is in trouble. Stand back from the situation and take stock of exactly what’s happening.
Our minds have a tendency to overstate problems and make them seem bigger than they really are, so the chances are whatever’s plaguing your business, it’s not as bad as it initially looks. Try to keep a level head when you’re assessing the damage and you should be fine.
Formulate solutions and don’t prophesy doom
Part of staying calm is making sure you’re always focusing on the solution to a problem. Instead of thinking “this is going to be disastrous for the business”, try thinking “here is how I am going to approach solving this issue”.
Break down the problem into stages and implement step-by-step plans for dealing with it. Is it a cash flow issue? Is there a member of staff you could approach to help you? Is a particular customer being difficult?
These all have bespoke solutions, so approaching the problem with solving it in mind is going to help in the long run.
Make some cuts
More often than not, the problems affecting a business are financial ones; a lack of customers in a tough period, poor cash flow, et cetera. When times are hard and you need to tighten the purse strings, think about looking for areas in which you can cut your operational costs.
Don’t worry – firing staff doesn’t need to be your first port of call. Travel expenses, overheads, and micro-management are all areas in which you can make cuts without sacrificing personnel to do so.
Although it pays not to panic, you should also make sure you’re looking at the problem head-on and not being overly optimistic. The world of business can be brutal and ruthless, and you’re not going to be able to solve your issue by pretending otherwise.
Be realistic about the scope and scale of your problem; this will better enable you to conceive solutions for it. The more you run away, the more the problem will grow until it’s untenable.
Shore up your marketing campaigns
If you’re noticing a lack of footfall in your business, try getting more aggressive with your marketing campaigns. Target your demographics hard on social media, construct flawless content, and advertise the heck out of your brand.
If you have faith in your service and you’ve got the right marketing personnel, this will almost certainly result in increased click-throughs and conversions. It might cost you a little in the short term, but you sometimes have to spend money to make money.
Be honest with employees
Have you ever worked at a business where things are going south but the management staff refuses to accept or admit it? That environment can be immeasurably depressing. Everyone is trying to avoid the elephant in the room, but the fact is that the more honest you are with your staff, the more potential there is for them to help you.
Even if the situation does turn out to be unsolvable, at least your staff will know the full extent of the issue and won’t feel like you lied to them.
Revisit your business plan
While you should be looking at your business plan as the bible for your operational procedures, it isn’t always flawless. Draft in some consultants to help you look at your plan and see where it could be improved.
Are you trying to be all things to all people, for example? Could your service be better-explained or better-publicized? Are there things in your plan that were crucial at the time it was constructed, but on which your business is no longer focusing? There’s almost always something you can improve in your plan!
Know when to walk away
Unfortunately, even when you’ve tried everything we’ve listed, businesses sometimes fail. There can be many reasons for this, and human error is only one of them. When your business is sinking and you’ve made all the changes you can to try and keep it afloat, it might be time to say goodbye and walk away.
This doesn’t have to be the end; while this business may fail, another can rise from its ashes and you can make it succeed using the lessons you’ve learned from this one.