Did you know that 20% of new businesses fail during the first two years that they are open? Whether from a bad location, lack of capital, poor planning, or otherwise, many go under. And recent events like the pandemic have only added to the challenge for businesses that are struggling to survive.
Do you own a failing business? Running a company can be challenging and sometimes things don’t go according to plan. But before you give up, check out these five tips that could help you turn it around.
1. Revise Your Business Plan
Business plans are an important tool in guiding new companies, and every business owner should make one. With that in mind, you should revise your business plan and create a fresh one to help jumpstart your company. It will help you look at the past and move forward by identifying future goals.
2. Cut Costs
One of the key steps in fixing a business is to take a hard look at where your money is going, and then cut some costs. That might mean switching to lower-priced vendors temporarily or removing inessential items from your budget. This applies to employees as well, and you may need to trim your workforce during lean times in order to recover.
3. Review and Modify Pricing
When you’ve cut costs for your business, it’s time to sit down and review the pricing for your products or services. Figure out if you could have a minimal or significant price increase. Sometimes even a minor adjustment can help a business recover.
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Another critical action to take is negotiation. If you work with vendors, be honest about your situation and see if you can negotiate a lower price for the supplies or services that you need, or set up a payment plan. As a last resort, you could also try to negotiate a loan with your bank in order to buy your company some time and pay off some of your business debts to creditors.
5. Revive a Failing Business With an Insolvency Practitioner
If you need help diagnosing the symptoms of why your company is failing, you might want to call upon the help of an insolvency practitioner like the Company Doctor. These kinds of insolvency and recovery services can help you identify issues and give advice about how to solve your business problems. They can also assist with dealing with late payments, tax arrears, liquidation, and more.
Ready to Save Your Business?
After reading about these tips on how to save a failing business, you can be proactive and try them out. It’s always a good idea to meet with your clients and vendors and let them know about your position. They may have valuable observations and advice that could help you restore the health of your business.
Did you find this article useful? Want to learn more about similar topics? Then check out some of the other great content in the Startup Ideas section of this site!