23 Apr

Turning Around Your Struggling Business

Posted in Synergy Suggestions on 23.04.13 by John Meloche

fixbizLife is full of ups and downs. And as the 2013 Toronto Blue Jays are finding out, even when there are high expectations for your organization, it doesn’t mean that you can avoid struggles. All businesses experience high and low periods. One of the best things you can do as a business owner is stay positive during your lows to quickly bring you back to a high point.

On Inc.com, Jeff Haden writes that turning around a struggling business is far from easy. But after speaking with Niels Juul of Nofatego (someone who specializes in recovering assets and restructuring operations), he realized that there are some important steps for entrepreneurs to take if they wish to dig their companies out of holes. It’s not easy, but it’s not impossible either.

Think like a firefighter. According to Juul, this is the approach that business owners need to take when tackling tough times. In other words, assume your business is in worse shape than it is. This actually helps to encourage you to metaphorically kick down the door without a fear of what is inside. Basically, it’s important to handle your problems head on with bravery.

Avoiding your issues certainly won’t help you to resolve them. In fact, Haden writes that this is why purchasing an already-struggling company can actually be quite beneficial. Such companies have what startup companies do not: existing customers. Are you prepared to fight the fires that have been set ablaze in your industry?

Ignore the business plan. Here’s some advice that may sound contrary to what you are likely quite used to. You always need a business plan, right? Haden writes that “a business plan is often little better than a fantasy. On the other hand, a struggling company involves realities you can touch and feel.” Your plan may have been unrealistic. Perhaps, you never implemented the steps for proper follow through.

The key is to put your attention on reality, says Haden. That means focusing on such issues as revenues, expenses, operations and cash flow. Rethinking your original approach will be important if you truly want to turn things around. There’s no shame in admitting that your first ideas weren’t your best. Learning from your mistakes will always be a part of becoming a better business owner.

Focus on people. Writes Haden, “If a once-successful business is struggling, it’s almost always a people-related issue. Not financing, not capital: Employees, management, or owners.” A business relationship is just like any other type of relationship. It needs to have good communication. Did something happen along the way to disconnect you from your customers?

Sometimes, entrepreneurs get complacent or lazy. They forget that the needs and concerns of their customers continue to grow and change each and every day. It’s important to stay up on these changes so that your products and services can continue to satisfy those who depend on you. Don’t get left behind or left out. Always keep your customers in mind.

Comments Off on Turning Around Your Struggling Business