Business Going Down The Tubes?

If you want your business to survive then you will need to understand the 5 important things you may have to do something about.

These are:

  1. Understand your model.
  2. Use your competitive advantage.
  3. Put in good management.
  4. Have sufficient capital.
  5. Don’t panic and don’t quit

1. Understand your model

You must be clear about what your business does and what your products can do for present and potential customers. You must know what advantage you have over your competitors. This advantage may be your product or your service or your cost, or the uniqueness of your method of delivery, or simply that you have located into an area where supply of your products or services has not been available before.

2. Use your competitive advantage
You need to look at why customers should come and buy off you rather than your competitors. What is your competitive advantage? Check out your market and if necessary, realign how you position yourself in that market. If you have competitive advantage then take steps to implement them.

It may be price, it may be the specialty of your product or it may be your service. It doesn't really matter what it is, as long as it produces a WOW factor in your customers. Customers will not come to you unless they are motivated to leave their trusted previous suppliers. They have to have a reason for doing this. That reason is - you provide a great benefit. That benefit is what your advantage would be.

3. Put in good people
The people in the business make the business. Your employees and managers are worth gold to your business. If you want to ensure that your business is successful, make sure you put in experienced people - especially in places of management.

A good manager can make the difference between your business achieving extraordinary results or ordinary ones. On a worst case scenario a poor manager can lose you money, isolate your staff, damage the good name of your business, destroy a profitable deal or close you up.

4. Have sufficient capital

Lack of sufficient working capital may be your problem. Many businesses fail because of this essential ingredient. Your business may be making good profits but not making “enough cash”. That is your sales are okay and your orders keep coming in but you don’t seem to have enough ready cash to meet the daily bills or buy things necessary for your business to go forward at a faster pace.

Poor cashflow may be your main culprit. You will need to address this urgently. Having little cash for your operations can be solved in a number of ways. See your adviser immediately and map out a plan to correct your cash position and raise enough working capital to work with.

5. Don’t panic – don’t quit
Perhaps the most important thing to do is not panic. It’s easy to get into a spin and you find that worry and stress take over. Look at your situation sensibly and logically. Talk it out with a good business adviser or business mentor/coach. Someone who has had good experience (and successes) in pulling failing businesses out of trouble. It is amazing how much better you will feel after you have talked your business problems through and shared the load with someone else.

Never panic. Tomorrow is another day. Things can change quickly once you are clear on where you are at currently and on what you need to do to get out of the present situation. Don’t give up. Work out how to fix it and do it. Things are never as bad as they look.

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