it was Have you been putting your hard work and money into your business? Even after all that work, is it still failing? If yes, you are in the right place. You should read to the end if you are looking for a change. Share it with everyone you think need a good motivational and educational post “Is your business failing?”
Don’t worry about it, it happens. Businesses get into trouble, but no need to worry, you can still make it right. For that, you need to know what went wrong. I am sharing a list with my Experience why it all happens and what can you do to make it right?
Is your business failing?
First, Let’s talk about why it happens?
Table of content:
- Poor Management
- Market Crisis
- Unplanned business deals
- Workers’ performance
- Poor Marketing
1. Poor Management:
Many businesses fail because they do not keep track of their source of income, Capital and Operational expenses, and proper budget management. When I first started my business, I went through a crisis in the next 7 months of operation. I did not keep my expenses and income in the form of a diary or excel sheet. Most of the time when you are spending too much money in the hope that you’ll get an income from the sale, you should always keep a track of it. Even if you get a lot of customers or an insane amount of sale.
There are a few more things you need to follow to learn proper management. It includes managing time, budget and, efficiency. Make a practical approach to how you are going to work on these points and start working on them as soon as possible before it’s too late.
Relevant post: How to write a business plan
2. Market Crisis:
This is something out of your hands or something you can’t control. Don’t worry though. There are many things you can do to make it out alive. It is like a high-speed wave that hits your boat. All you can do is just hold on to something tight and wait for this phase to go. Also, you need to prepare for this phase.
If you have any creditors, Talk to them in the meantime before you run out of options. Tell them that you’ll pay them later once it’s settled. Reach out to your customers and get as many orders as you can to keep your business running.
Make proper planning and manage your budget for that phase.
3. Unplanned business deals:
When you first step into the market, you don’t know what it is like to stay in the market and make money by manipulating people. When I first started working at my Startup, I got this huge order for printing from a client. It was a big step forward for us because getting a 10k dollars deal in the first week was great. After getting the advance, we started working on it and got the package ready in 1 week. When it came to payment, he started sweating and in the end, he denied to accept the order.
What I could have done prepared the order in many parts and if he didn’t receive the order, it would not have been bad at all.
4. Workers’ Performance:
When you are working, make sure you work at least 6 hours of worth in an 8 hours shift. We usually get distracted by useless things and we focus our concentration on different things. This inefficiency of work kills our consistency, impulse and, ultimately the company.
5. Poor Marketing:
If you are targeting an improper audience or you cannot keep track of your marketing budget, your company will go into ruins. There are many ways to target an audience depending upon your business, but if you are not finding the correct people, it will fail. Definitely.
So these are some points which plummet your business. But worry not, it can be better.
Check out this list of the things you could do to get on track when your business is failing.
Table of content:
- Take care of your creditors
- Manage your Cashflow
- Cut down your expenses
- Spend more time on strategy
- Focus on Marketing
- Hope and bear with the crucial time
1. Take care of your Creditors:
Talk to them in this crucial stage because if you spend all of your funds into them, you’ll be left with nothing with unpaid employees. It is more important than paying debts. Talk to your creditors and convince them to pay later once it’s over. Make a time frame and see how can you pay them. In the meantime, work on your business and strengths. If you have too many creditors, try to finish off some of them and convince the rest and pay them accordingly. I went through the same problem last year and I am glad I was able to figure it out. If you make a stand, I am sure they will understand until you pull it off.
2. Manage your Cashflow:
Keep a track of your Capex and Opex (Capital and operational expenses). Figure out what more you can do to make a sustainable income. Like I mentioned in the Problem above, this has to be figured out as soon as possible. Working in an excel sheet is better. I understand you cannot carry a laptop every time around so carrying a diary is an option.
Once you have figured it out, you can start working on saving money. You’ll not have to worry about your downfall, you can see where are you spending more.
3. Cut down your expenses:
When I was working in a marketing company, we were generating a great sale and I was appointed as a sales manager in a mere 6 months. Even after this great sale, we were in 1k$ loss. While everyone was expecting great revenue and profit, this thing made us look into the basics. After checking all the data and stats, we figured out we were paying too much to low-level Marketing people. After fixing this by hiring less more-skilled guys and maintaining the standards, we were able to pull out 10k$ in next month.
See where are you spending more on your business and find a creative way to deal with it. It helps a lot.
4.Spend more time on strategy:
I don’t know what is your business model but I can tell that you need to spend more time on your next 15 days plan to figure out what is important and what should be done to make it work. For example, my company works in the printing section. We decide what should people see in the next 15 days, how much we spend, how much revenue should be generated and how much work should be done (which is divided into categories for everyone). We work on the remaining tasks to meet the expectation if it is not done properly in the last 15 days.
So the point is if you make a key plan for yourself and everyone in your company, you’ll be good to go.
5. Focus on Marketing:
Spend a lot to earn a lot. That’s what I believe in. It should be done strategically to make the final output worth heartwarming. It depends on your business model how should it be done. There are many ways of marketing e.g. Social media marketing, Banners, Hoardings, TV, the Internet, and whatnot. But it depends on what type of business you are in.
So make a plan for your marketing strategy and start generating a sale as soon as possible.
6. Cross your fingers and hope to bear with it:
As an entrepreneur, you will face this kind of challenge for your life. What you can do better in the end after completing all your tasks is hope to go through this. Make it alive out of it. This is the final stage of your problem. Once you face it and make a stand against it, nothing, I repeat NOTHING, can beat you. Just hold on tight to something and hope for this storm to pass.
In the end
As a business entrepreneur and experienced man, I suggest you follow these steps. I have been through this, you will too. If you haven’t faced it yet, trust me, my friend, worse is yet to come. So prepare yourself for the worst, hope for the best and keep working. You will get better.
To know more and learn more, contact me through the email address or this contact page. I wish you good luck!