espite the amount of business blogs on the internet, and those offering steadfast advice, businesses are known to fail from time to time. This can happen without negligence. Unfortunately, many people have had to deal with this. Thankfully, a dying business can be resuscitated, and there are tips you can employ to save it. They may not be easy, and they’re not always time-efficient. However, doing so may help you avoid foreclosure, or having to lose your grip on the corner of the market you have come to rely on.
Businesses are fickle things. There are many changes you can make to help them. Think of them like an organism, with processes that can be optimized in the event of a difficulty. Of course, if your business is dying it’s likely that multiple inefficient processes have been allowed to continue for some time. Avoid making that mistake again, and it’s very possible you can get over the worst with your pride intact. Just follow our advice here:
Appealing to investors can be a worthwhile causes, because it could potentially lend you a cash injection that you may be thirsty for. There are many ways to do this. You may decide to offer an ownership percentage for this investment, plus their guidance and access to contents or promotional avenues. You may decide to cut an investor in to a percentage of products sold, or perhaps open it up publicly for final shareholding potential. Not all of these methods will be wildly successful, and you’ll often need to truly convince an investor to take on this cause despite the work they have to put in.
You may decide to show them the assets you hold as a backup, perhaps a new business plan crafted to cater to a new niche, or product redesigns that make the most sense for the modern day. Anything you can do to draw attention to your business value (backed up by figures and projections) could only help your cause. Also, it can pay to show the cash value of your assets and backup reserves to this investor, because they will often try to make good on their investment if the business fails. Dividing up a percentage of ownership can help here, as it prevents arguments if things continue to degrade. Of course, a personal loan can also take the place of a mini-investor if you are sure to pay it back, so look at resources such as Bonsai Finance to help you.
It might be that engaging in an aggressive marketing strategy could truly help your firm take itself to the next level. Promotional material may take time to craft and offer well, but doing so could be a last ditch effort to offer your goods for a reasonable price. A crash sale or perhaps sponsoring an event could be worthwhile to get your name out there. It’s not uncommon for firms to truly expand their success if they simply get the promotional material right.
You may decide to couple with a larger and more well known business, offering your products for a smaller profit if bonded with a purchase for the other firm. This way, selling large amounts of units in bulk to firms that have that purchasing power could help you make good on your static stock, while also benefiting from the name of the larger firm. Mutual promotions like this, even those that are less financially appealing to you, can serve as an endorsement from a larger name. You’d be surprised as to how effective this can be, as often name and reputation will mean plenty to a loyal customer to said firm.
Discounts are different to promotions, in that they may not be for a distinct purpose. Simply lowering the cost of your products may mean you gain less of a return, but can prevent stock from expiring within your four walls, and still help you pay the bills to keep you going. In the short term considering discounts as a form of fuel to keep your business finances operational could be worth it, especially if you’re worried about making payroll or many other critical financial contributions you need to take care of.
Discount sounds like a dirty word in the progression of business life. It needn’t be. With the right attitude, it could help your business keep its head above water, and perhaps kickstart your sales in a way that’s particularly needed right now. Consider how much profit you’re willing to forgo in order to break even or generate small amounts, and you may find a compromising path through these difficult times.
Selling your most prominent assets and downsizing could be worth doing. It can help save a business. Cutting jobs, perhaps selling properties and even stock inventory or old manufacturing parts could help you downsize, limit your monthly financial contributions, and give you that cash injection you’re crying out for. Staying humble may be a worthwhile enterprise if losing out on business. From here you can go back to the drawing board without your pride lost, and begin to structure your business growth once more.
Of course, it’s never nice to cut jobs and to limit your enterprise, especially after you’ve worked so hard to build it, and your employees have given their all. Sometimes it is needed however, and ensuring this process takes place in the most respectful and accommodating manner is the most ethical decision to make here. This can be more achievable if you plan your efforts far in the future. For example, notifying staff way in advance of when the job loss needs to take place, ideally even more in advance than that stipulated in your contract, can help you target certain departments, avoid a skills drain and ensure you build no bad blood for those who work in your company. Offer glowing references for your staff, perhaps ensure they receive a severance package ahead of time, and ensure they’re given adequate time to vacate the premises. Also ensure all paperwork is effectively handled, because nothing leaves a bad taste in the mouth like being treated sloppily on your last day.
With these simple and quick methods of resuscitating a dying business, you may just save it after all.