There are plenty of reasons why a business struggles, like when the things don’t go the way or don’t work out the way as it was planned it somehow results to a struggling business, any business whether large scale or small wants to sell their products and services but when the result is not what you are expecting then it is important to review your strategies.
So many companies who acquired a good position in the market but now they are facing troubles in even surviving in the market like Eastman Kodak was known for its cutting- edge technology in, but now many patents are sold and buildings demolished and the company started shrinking after its 2012 bankruptcy.
It is attempting to unlikely comeback in cryptocurrency of all the things. In a similar way one of the most famous motorcycles brand Harley-Davidson is plagued by having to recall 250,000 motorcycles globally because of some issue with brakes and millennial are not interested in motorcycles as their parents used to be, the shares have declined 12% in the past year and further there are many businesses which are still going through hardships like Crocs, Subway, Aeropostale etc.
Let’s Take a Look at Some of The Reasons:
- As I said earlier the first place to look at is your marketing strategy, suppose you don’t use social media or online platforms for marketing your product and this platform can help your business to increase sales and recover.
- If your product is something really innovative and new then it doesn’t mean it is going to be successful, it is important to look whether the service or product you are providing are needed in the market or not.
- When you too many competitors in the same field the chances of your winning decreases for example the businesses like restaurants take a lot of input and efforts plus they fail a lot of times because of the competition that they have to face in the market.
- The possibility can be that your product is either not useful or costs a lot, and consumers usually avoid costly things, they want things in reasonable prices unless you are a well established brand like Gucci or Prada.
There are many other reasons that lead to a failed or struggling business, the most important part is that you have to keep up with market, even if you are an old brand it’s important to change with the evolving market.
If your business is starting to slow down, revenues not growing fast enough, when your team is quite unsure about their personal future with the company then yes your business is in the struggling phase before turning into an unsuccessful business it’s important to take some necessary steps:-
The first step is to find the issues, what or where is the company exactly facing the problem i.e. Identifying The Problem. It is obviously difficult to view the company as a whole and pick out the reasons why the company is failing.
You need to give proper time to your business meaning take a step back from your day to day activities and try to focus on the reasons which are leading to your company’s failure.
Are your marketing efforts failing? Are you facing problem in converting your visitors to customers? And other issues troubling your business, it is important to recognize them. In fact you can also involve an outside expert to provide another opinion or another perspective.
So the first step involves accepting your situation then trying to find out the reason of the situation and involve others perspective to it and then moving towards a decisive action.
The second step is taking actions that is what changes do you want to make after analyzing the situations and the reason causing it.
If you realize that your business is losing money or is going through cash flow crisis, you can look for some finance solutions like merchant cash advances, alternative overdrafts that can be helpful in providing a way out of this situation.
In this situation there is no need to panic or shutting down all your monetary expenditures but take look at your expenses and the areas in which the spending can be controlled and which can help to reduce losses. During this period there can be times where you have to make some tough choices, once you are successful in slowing down the losses you will get more time to determine how to figure out other things.
By investing a large amount of capital in non-essential assets like buying stocks that are not even required or spending more than required on the necessary equipment and machinery due to which a lot of businesses get in trouble.
It becomes important to take a look at the numbers and figure out what is working, it’s time to cut free the areas in the business which are consistent money-losers like selling excess stock even at less cost price can be helpful in re-balancing the cash-flow, then try to focus more on the things that do well like if there are services or products that are consistent sellers that you might want to double down.
It’s like a process of building your strength and cutting down all the weaknesses to build better opportunities for your business in the future as well as strength to tackle any threat in future that might arise or maybe affect you business. In other words not just tackling the storm today but also to face the challenges in the future.
It is a difficult situation to end relationships with your suppliers or your employees in a crisis situation but sometimes these are the only options to save your business and you can do nothing about it.
When there is a struggling situation for your business and relationship with certain suppliers and employees is not that essential then you should definitely consider ending it for the sake of your business.
Before more jobs fall under risk it is important to take action as soon as possible to save yourself and the employees which are necessary for your business rather than being stuck with the ones which are not doing any profit.
The final step is to look how your business actually runs, meaning if you are the business owner it’s high time for you look at the working of your own business model and determine if it is running in a sustainable way keeping in mind the long term growth of the business.
You can always appoint a third person to come look at your functioning and give their opinion on that as told earlier a third perspective can actually be really helpful for your business providing you with a different angle and point of view. Whether you go for outside help or not the main motive here is to ensure that the methods of administration are not the actual root cause of the failure of your business.
The reality is that almost half of the businesses usually fail in their first five years and the majority of the businesses deal with the unstable financial position one time or another.
Difference between those companies that ride out of the storm and those that fail is the actions taken by them and availability of expert assistance. But not a lot of business can be saved, it takes a lot of time to find out the reasons of what’s affecting our business and then trying to make proper strategies and then implementing those strategies to change things.
The whole process of saving business can be very time consuming, needs a lot of patience plus can be frustrating sometimes and often you won’t get the same results as you desired but even if it makes a little change in your thriving business it is worth it.