Small businesses are incredibly sensitive to bouts of both good and bad fortune. Catching a trend at the right time can lead to incredible success, but the opposite is also quite possible. Perhaps your business niche has fallen out of favour with your customers, and profits can quickly turn into losses fast.
It’s exciting and fun to see the rapid growth of a business, but there is precious little joy in downsizing a business as it struggles. Many businesses that go under fail to plan, and become so debt-riddled that they did unnecessary deaths.
If you see that the market is evolving before your very eyes, there are a few steps you can take:
Cut Dead Weight
You may find that doing a 360-degree analysis of your business, with the stated aim of cutting out wastage may be ideal. Cutting expenses and reducing stock holdings can aid in bringing additional profitability to your company. You may even find out that closing specific areas of your business and\or reducing your staffing levels may just be what the doctor ordered.
Identify Areas Of Strong Profitability And Focus Efforts There
If a specific product or service offered by your business is thriving during a potential storm, it may be worth investigating if there is scope to expand your business in this profitable area. You may find that you need to purchase additional stock or commit to further marketing; running with it may just be the perfect antidote to your ills. If there is enough upside, you may find that a business loan can turbocharge your move into this more focussed area of business.
Seek External Counsel
If you have access to a mentor, then this is an ideal time to chat with them! Whilst some companies may engage the use of external research agencies (budget pending), a cheaper alternative is to engage with similar types of businesses and have an open discussion about business conditions.
Sales Techniques and Processes
Being aware of what your market specifically wants, and how they want to be ‘sold to’ is a critical aspect of ensuring a business’ ongoing survival. Things may be as simple as your customers becoming tired of your selling style, or perhaps your failure to follow them up after a sales call is impacting the bottom line. Evolving how you conduct business could enhance the bottom line, even in a tight market.
If a business is losing money, there are many ways to change your destiny. By carefully considering your world around you, you may just find the answer.
If you need support with additional capital, have an obligation-free chat to the team at Unsecured Finance Australia about how we can help you today.