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Business On The Rocks? 4 Ways To Make A Comeback
by Emma Sturgis Mon, 11/07/2016 - 10:58
Most businesses experience tough times. When circumstances start to close in, it is easy for owners and management to start planning for disaster instead of doing what is necessary to keep the company moving forward. Here are a few things you can do if your business is on the rocks and you need to start engineering some good news.
Like the old adage says, if your business isn't growing, you're headed for trouble. Never is this truer than when a company is facing hard times. Growth and expansion are the energy sources for every strategy your company can use to emerge from difficulties and start making financial and professional progress again.
Expansion can be applied to everything your business does. Sales should be first, for obvious reasons, but expanding sources of funding, product lines, existing products, customer lists and technologies are good places to start looking for solutions.
For any business, customers solve all problems. More customers means more cash flow and better financial conditions, and even if your business is behind the power curve from a financial standpoint, the more reliable your cash flow, the more likely it is your business will make progress towards the black.
It is often a good idea to look at re-engaging with old customers as well. If you have a sales list or even better, a mailing list, you can very often find sources of revenue in those old customer relationships, especially if the first thing you tell them about is a new product line or a special offer of some kind.
Like it or not, you might have to raise your prices or cut the costs of goods sold in order to increase your margins. Higher prices aren't always bad. In fact, in some industries, customers see higher prices as a sign of value as opposed to a disadvantage when compared with other products.
While you are analyzing your prices, see if there is a product or service you can offer as a loss leader to inspire new business. When combined with an appeal to existing customers, a "welcome back" offer is sometimes a great way to jump start sales.
When your business is struggling, it’s easy to panic and often times not see a way out of the problem. It’s important to stay calm and strategize a way to get your business in better standing and keep it there. Consider hiring professionals like Navicor Consulting to help you make a plan and move forward to better business days.
Many companies' greatest success stories take place after they have faced financial or organizational problems. If you see your problems as opportunities, your company could be one of them. Use the tips above to help you move forward and get your company to better standing in the future.