March 18th, 2014.
My Business is Struggling; What Can I Do?
[Image via Flickr]
Did you start your business with dreams of getting rich quick and now years later you are anything but that? If your business is starting to struggle and you are not quite sure what to do to get it back on its feet again take a look at the following pointers.
Where Are You Losing/Wasting Money?
Before trying to rectify any problems you need to know where your weaknesses lie. One of such weaknesses could be over-spending. Keeping expenditure to a minimum is important in a business in order to maximise profit. You want to be bringing in more than you are paying out each month.
Take a look at your bank statements and highlight the largest outgoings; can you cut them back at all? Perhaps you are paying well over the odds for some things and some price comparison research could save you a fortune putting you back in the black.
Stock and Utilities
Try switching suppliers or buying in bulk for a cheaper price with stock. Another way to save money is to make sure your office, warehouse or shop is energy efficient by insulating the walls and switching to LED lighting.
In extreme cases you may have to resort to laying off staff members. Try to keep layoffs to a minimum not to damage the morale and productivity of your remaining employees. A huge downsize may also get back to your customers, causing them to lose faith in your business.
Are You Making Enough Money?
Most struggling businesses are doing so because they have financial troubles. They may cut back where they can but if projected sales are not met it may not make much of a difference. If your business isn’t doing very well then get in contact with your financial broker or accountant for financial advice; you may have to review your business plan.
If you are looking to boost sales then there is no one better to consult than your customers or clients. Ask them what they would like to see or what they think could be changed for the better. Take their responses seriously as they are the ones paying you money.
One way to make more money is to increase your prices. Be careful of this however as if prices are hiked too high you may lose the customers you do have.
Hold a Promotion
Entice new clients by holding a promotion or sale for a limited period. The hope is that they will be tempted by the low price and great deal and will bring return custom after the offer has finished.
Small Business Invoice Factoring
If you have enough work but are struggling to get payments on time then you may want to enlist the services ofan invoice factoring broker. This is an independent company that will collect payment from your customers and pay you an upfront percentage. The remaining balance will be returned after receiving the payment, minus a small fee. Business invoice factoring is favoured among small businesses as it assures cash flow each month.
Do you think any of these ideas may be able to help your business get out of the red? We hope they do. If you have any finance questions get in touch.