Being a business owner can be one of the greatest joys in life, but it is also one of the most challenging. The hard truth is that some businesses just don’t make it, and the recession has little to do with it. According to the Bureau of Labor Statistics, roughly 50 percent of businesses fail in the first five years, and that statistic holds true whether you started your business in 1994 or 2010.
This statistic also proves that if you have a good or marketable concept, it is possible to survive and thrive as a small business no matter what the economy is doing. To get through a rough patch, Bad Credit Business Loans can help, especially if your business is headed in the right direction. Read on for some tips to save your business from going under.
Get to the Bottom of the Issue
The first step to saving your business is to understand why you aren’t successful. It may sound like a no-brainer, but being objective while looking at your small business is difficult. Instead, take a hard look at the performance of the company, and analyze the numbers only. That is, look at Tom’s sales, not make the excuse that Tom has had a problem with his allergies and it may have driven down his performance.
You’ll need to look at the financial state of your company, the sales it makes, and the nature of its interactions. If necessary, send a friend to your store to pose as a potential customer or send an email inquiring about your company’s services to see whether the customer experience is up to standard.
Trim the Fat
Another reason that small businesses fail is that they have too much fat. Look at where your company’s money actually goes, then ask yourself whether each entry is necessary. You may find that you are stocking your break room with magazine subscriptions no one reads or that you are keeping sub par employees around because you don’t want to fire them. In either case, it’s too much fat and the money your business spends on those things could be put to better use, like keeping your company afloat.
Take It One Step at a Time
After you’ve looked at the core issue your company is having and you’ve trimmed the fat in your operations, it is time to break the core issue down to a single statement. Maybe you employees aren’t engaging with customers and building the type of relationship that makes sales, maybe you have a staff member bringing everyone down, or maybe you simply don’t have enough cash to run your business the way you have been.
Whatever the case may be, simplify it to a single statement you can measure. This is your short term goal. Rally your employees around this single goal. At you have obtained one victory, it will be easier to continue finding ways to make your business better.
With the right management, a little strategy, and a great team, your business can succeed.
Image via Flickr by Sebastiaan ter Burg