When your small business falls on distressing times, there are many possible reactions. Some owners panic and become completely overwhelmed, while some live in denial. Most often it is a combination of both, with denial coming first, then panic. Denial and panic are not the answer however. The only way to recover from small business distress is to face the issue and take action.
First, take a breath and regroup. Look around, take full inventory of the problems, and get your arms around exactly what you are facing. This may include interviewing customers, questioning staff, observing daily activities, and reviewing financials. On the top, the issue is likely not enough profit to continue the business. The key is to find what is causing this issue, and fix it. If there isn’t enough business, then your focus can be on marketing or finding a more suitable location. If there is plenty of business but still not enough profit, maybe expenses and pricing need to be evaluated.
The priority in any business is making money.However, this priority is met by prioritizing many other things. Customer service should trump cutting costs in most case, but here is a balance. You do not want quality to suffer due to cutting corners, but you don’t want to put yourself out of business either.Prioritizing is not as easy as it seems, and sometimes a consultant may be helpful, if possible, to help you look at the matter with fresh eyes.
Develop an action plan based on what you have seen. If there is more than one issue to be addressed, develop a plan for each one. Are you having trouble getting customers due to location, while at the same time needing to increase quality to compete with other businesses?An action plan with an end goal needs to be created for each of these matter, with the most pressing being priority. Maybe if you increase quality customers will be willing to come to your location despite it being a little more out of the way. This will mean a new take marketing. They have to know about the better products, so maybe a sample campaign is in order.
The best way to handle small business distress is to get to the “take action” phase before the distress becomes too much.Any course of action is going to require funding, and if financing is the way to do that, Biz2Credit is here to help. Our extensive network of lenders offers various types of small business funding. Visit Biz2Credit.com today and let us help you find the perfect lender to fit your business financing needs.