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What Should You do When Your Business Isn’t Doing Well?

what should you do when your business isnt doing well

Every business owner will encounter difficult periods, and unfortunately, many do not survive these challenges, becoming just another statistic in the high failure rate. In this blog post, I will explain how you can persevere and make progress, even when it seems like the end and carrying on appears impossible.

Firstly, try to avoid excessive stress.

At the end of the day, regardless of the situation, all you can do is give it your best shot. If you’ve invested sufficient time, energy, and commitment, there’s not much else you can do, so don’t let stress overwhelm you. While stress can drive us to exceed our limits and achieve great things, it’s important to monitor its impact on our health and make adjustments as necessary.

Your business should be a reflection of you, but it should never define you.

what should you do when your business isnt doing well

Business can be incredibly tough.

To any entrepreneur struggling, my advice is to keep going and keep moving forward. There are numerous possibilities for transforming a business from surviving to thriving. However, it’s also vital to acknowledge when stopping is the right choice. If a strategy isn’t working or if the passion is lacking, it’s perfectly acceptable to let go.

Enduring Tough Times

To endure tough times, you must possess a strong determination. This resilience will help you overcome obstacles and achieve remarkable outcomes, making the success even more rewarding. Experiencing hardship can enhance the appreciation for success, similar to the satisfaction of earning something versus winning it unexpectedly, like a lottery.

I have built and sold a business for over £1.5 million, an achievement that followed the painful closure of a previous business. That failure made me stronger and more determined not to repeat the past.

There was a particularly dire week when everything seemed to collapse. We faced a major tax issue, a severe cash-flow problem, and multiple operational challenges. It felt like the end was inevitable. Yet, after everyone left one evening, as I walked through the building reflecting on everything we had achieved over the last ten years, I decided not to give up.

The path forward was unclear, but we managed to recover and in-time we began to thrive.

One crucial strategy that saved my business was continuous marketing. Even during the hardest times, I never stopped marketing. This consistent investment was key to our recovery and success.

Effective marketing that provides a good return on investment should never be halted. If your business is booming, consider raising your prices—this not only maximizes profit but also sustains growth.

Here’s a list of strategies to help when your business is facing tough times:

  • Make a plan: Understand your financials and devise a realistic turnaround strategy.
  • Talk to suppliers: Communicate your challenges and reassure them of your plans.
  • Analyze your business model: Identify weaknesses and address them.
  • Consider reducing staff: Make difficult decisions if necessary to preserve the business.
  • Negotiate with the tax office: Flexible repayment terms are often negotiable.
  • Borrow if it’s sensible: Only take on debt if the terms are manageable and the investment makes sense. The only cost is the interest paid.
  • Continue marketing: Never cut back on marketing efforts.
  • Engage actively in sales: Get on the phone and personally reach out to potential clients.
  • Take necessary breaks: While resilience is crucial, everyone has their limits.
  • Keep moving forward, a little progress everyday adds up over time.

Always focus on cash flow: It’s essential for surviving tough times, but make sure there’s a long-term plan that will lead to profitability and a secure future for the business.

If you need any help with business troubles, I am always keen to talk, just talking through can be a massive relief. Contact me via email = @stuart-miles

You can also get support from the likes of the Federation of Small Businesses

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