First Aid for Rescuing Your Business of Failure
It is sometimes possible business rescue the brink of failure, however, it requires much more effort to operation under normal circumstances. So, I have heard hundreds of stories of failure and I have learned that when a small or medium business is at risk of failing, the following are some of the first aid to be supplied…
If the company financial statements, come with a professional (a good accountant or administrator) to make an assessment of the gravity of the situation. If your company has a financial imbalance is essential to identify causes and determine what can be done to revive the business.
If the problem is that your business is not making money, make a budget and start cutting costs. Get rid of the things you’re not using and discusses how to reactivate the sources that generate revenue for the business; For example, if your business is service, asks customers to pay at least half before getting the job.
2. Identify the underlying problems
Make a list of all business problems and questions that you must solve to get to the bottom of the problem. This is something I learned during my years as a journalist, the best way to understand a given subject is to ask questions and accurate.
For example, if your problem is that the business is not being as profitable as it used to be, some pertinent questions are: Sales fell? Do customers are buying at a lower price elsewhere? Are consumption patterns changed? Are customers buying over the Internet? Do our costs rose? Why the change?
You have to do a dissection of the story, piece by piece; You cannot do much about “our sales are down” but certainly you can do something meaningful as you discover what your customers want. If you have the resources, hire a consultant to support you in the process.
3. Improve your customer service
If you believe that one of the causes of failure of your business is the loss of customers, go get lost customers . In other words, every time you see a customer prefers to buy from the competition, or simply stop buying your product, discover why it took that decision and offer something reasonable to save the relationship. Sometimes you will achieve saving to customers, sometimes not, what matters is that you get valuable pieces, information to avoid more losses. In the short term, this exercise can be the difference between staying in business or close your doors.
So Sam Walton, founder of Wal-Mart, said that there is only one boss, the customer. The latter can fire everybody in the company, from the president on down, simply you spend your money elsewhere.
Existing customers are the most important for the survival of the company key. Give them a remarkable deal and spread the word about the wonderful experience they had.
4. Dismiss the toxic employees
Sometimes, a bad team can bring a business to ruin. Worst of all is that the phenomenon of toxic employee is contagious. Research on mirror neurons show that negative attitudes are spread in seconds. If you do not get rid of toxic quickly employees, good employees will leave. Never commit the quality of your staff for fear that a layoff damage your reputation. Firing is part of business life.
Employees who stay in the company must be treated with respect, be transparent and tell them what’s going on. Treat your computer as you want them to treat your business; especially in bad times, it gives incentives to employees who have outstanding performance.
5. Seek a second opinion, Identify opponents and ignore them
I know this seems contradictory advice and do not want to be misunderstood as “seek a second opinion and if you do not like it, ignore it.” What I mean is that it is very valuable to hear other people, but, between them, it is essential to distinguish reviewers with knowledge and good intentions, and reviewers to make you feel bad (yes, the world is not rosy, remember there will always be trolls bullys and having fun playing with your emotions).
If your business is essential staggers seek feedback from a reliable person with good reputation in business. Ask what you think about the questions you wrote in point two, what are you ignoring what points should not be on the list, which you believe should be your priorities to rescue the business.