Let’s say your company is doing poorly. Let’s pretend your business has $1 million in debt and your sales are decreasing year over year. Your leadership may also be lacking and your turnover rates are increasing each year. How do you turn your company around? There is no simple answer to this simple question, but there are a few areas you can focus to start building momentum.
For starters, you will need to focus on getting your sales up and this is usually no easy task. Conscious efforts need to be put into building a sales strategy and getting your sales to a point that is acceptable. Strategy can vary from business to business. For the most part, you are going to want to call up customers and build relationships. Understand their needs and not just want you want to sell them. When you understand your customers’ needs, this is usually a huge break-through and helps you generate more sales. It also shows your customer that you are on their side and listening to their asks.
Cost savings where applicable can also help you sustain business for an extended period of time. This should be a daily focus anyways, but let’s not get too crazy and cut costs where it just does not make sense. At the end of the day, we need to make sure our sales are high enough to keep the business running. If the sales are not there, no amount of cost cuts will keep your business running.
Lack of leadership simply falls on owners and managers of the company. Great leadership must start at the top and trickle down. Losing respect of your workers will not give you quality workmanship. Gaining and holding the respect of your workers will go along way. I can speak more to this point later on in another blog.
Lastly, debt does commonly occur in most businesses and in our personal lives. It almost seems unavoidable, although I do encourage you to avoid it where possible. For example, if you can pay cash for equipment, then I’d advise you to do so. If you are $1 million in debt, understand how long it will take you to pay off. Understand the amount of interest you are paying each year. Understand how you got into this situation. Understand if you can get out. Understand all your options, create a plan to reduce, and take action.
I feel each of these items need to be looked at for a successful business. These items can be challenging, which is why I find it fun to run a business. If it were easy to run a business, everyone would do it and be successful. So many are trying to run businesses and not succeeding. Let’s try to run the business and succeed.