Why your business is failing
Sometimes businesses go through a rough patch. Half of the small businesses end up failing within the first few years. This can happen because of a variety of reasons that can sometimes be beyond our control. However, there are some things you can plan for and control for when the unexpected arises. The following list will help you keep control of your business to prevent it from crashing and burning.
- Be organized and have a plan
Wasting time due to lack of organization can have an impact on your business. Thinking of your time as a commodity is a good way to put things into perspective. The more time you waste, the more money you lose. If you have solid plans, structures and procedures in place then it will help you to use your time more efficiently and effectively. Planning is essential for a business to run smoothly.
- Cash flow
The biggest strain on a business is having poor cash flow which can be due to a variety of things. The most common being when you undercapitalize, as well as lack of planning and pricing of products/services. Keeping track of your revenues and outgoings is vital to maintaining your cash flow. You need to make sure you are making a profit and not just flushing money down the drain.
- Your Customers
Customers play a big part in how profitable your business will be. Make sure you do research into your customers to make sure you are providing the right service/product to the right people. For example, if you are selling baby products in an area that has a high amount of single people with no kids then no one will buy your products. You need to know your market, what demographic you want to target as well as the demand for your product/service. Also, your prices need to match up with the quality of your products/services. By researching competitor’s prices you can determine the best price to maximize your return.
- Marketing and advertising
Advertising and marketing play a big part in the success of your business. If you have no customers then you won’t make any money. It’s good to consider hiring a professional if you aren’t sure how to go about marketing or advertising. Effective ways to advertise can be through social media, emails, word of mouth, letterbox drops, advertisements and videos. Also having an engaging and professional website will also help to keep customers engaged your business.
Invest in quality staff. Your staff are the backbone of your business. Without good staff, you will have no support and no one to provide your products/ services to the public. Once you have a good team of staff members make sure you invest in them with training, rewards and upskilling etc. this will reduce your employee turnover and promote quality service to your customers.
The key to keeping your business afloat is to make sure you have a good plan in place, stay organized, research and advertise. Also, there is no harm in asking for help when needed, whether it’s a business loan to keep your cash flow under control or asking for advice from a professional about marketing.