It’s normal for any business to experience some setbacks and learn how to maneuver in order to avoid the same issue again. It’s part of every entrepreneurial journey but how can you save your business if you run into an unexpected loss or breakdown? It can be quite stressful when your business encounters a major problem that cannot be undone.
Hundreds of startup businesses emerge every year but only a few survive the struggles they face.
Identify the root cause of the problem
It’s important to determine the reason why your business is falling apart. Take time to go through each department and check with your employees for feedback. Getting their direct insight can oftentimes be of great help. Review what’s doing well and what’s been doing wrong.
Adversely, businesses fail because of poor leadership. As the saying goes, “A Fish Rots From the Head”, so it’s important to keep your department heads in check.
Look after your team
Employees can also sense instability whenever things get tough in the company. They will be concerned and pressured about the security of their jobs, so as a leader, it’s important to be as transparent as possible. Keep your employees engaged by showing them that they are part of the team. Develop a culture where everyone’s concerns are heard and create an environment where your employees feel safe and taken care of. Employees who feel appreciated are highly motivated to share your vision.
In addition, provide incentives to your management team to keep them on board. Being able to contribute to the company’s success is fulfillment itself but it’s more rewarding if they also benefit from it.
Assess and review your goals
Revisit your goals and be realistic on where your company is currently at. Once you have determined the reasons causing the business’s problems, create an action plan before you make the adjustments here and there.
Identify your short-term goals which include reducing overhead costs and restructuring your teams. Medium-term goals should be focused on boosting sales and generating revenues. Your Long-term goals may vary whether maybe acquiring another business or stepping up to become a leader in your field. When your goals are in place, start your strategic plan to achieve them.
Downsize where possible
Conduct a thorough employee audit and understand each role and the responsibilities then look for low revenue-generating parts of your company that you can afford to reduce. But avoid cutting your staff to minimise costs in the short term because you will need this manpower to achieve your medium and long-term goals.
Maximise your staff’s productivity and encourage them to be more efficient. Look for costs that can be eliminated like downsizing your office space and getting rid of company cars or even as simple as cutting down paper usage or going paperless. Monitoring every little expenditure can already make a difference.
Be open to change
Things that were working before may no longer be cost and time-efficient now. Learn to adapt and put your ego aside. Delegate tasks where you can so you can focus your time on other important matters to attend to and accept that some things need to evolve and getting help can be profoundly helpful. For instance, you may bring in a consultant for expert advice and fresh ideas. Sometimes a different perspective might just be what the company needs to get back on track. Be bold to interact with competitors to see if there’s a possibility of merging your business with theirs.