It’s so easy today to start a business. Often the only thing you have to do is to buy a domain name and make an online registration of your business. And you have your own company!
However, keeping your company successful and profitable is a completely different thing. This is where all the obstacles start appearing and pulling you down. But no matter how serious your current situation is and in how many deep problems your company is, there are always reasons why you shouldn’t close the door of your company forever.
1. Be where the action is
At the beginning of every business, entrepreneurs tend to be sales chiefs. They are in the center of it all; they can firsthand see how things are developing. Once the business has taken off, they slowly move on to other sectors like marketing or financing. In short, they start coordinating things and lose track of the most important part of their business – sales. If you think you have done that mistake, just change your direction slightly and dive into sales again. Make time to train your sales staff. Always keep your eyes on it. This where your business thrives or ends.
2. Economize where you can
Every business should be regarded as a small business, however big it actually is. Maybe you got carried away with your initial success and started spending too much money on unnecessary things and luxuries. It’s not too late to do damage control – start with business frugality right away. There are always a lot of small things you can save up on, you just need to start being aware of them and ask your employees to do the same thing.
3. Avoid emotional pricing
You need to stop with emotional pricing if you have been doing it from time to time. Maybe you sometimes were afraid that you could lose a job, so you decided to lower your price to keep the job. And you continued doing it, lowering your profit limit at the same time. Another usual trap is when you simply want to beat the competition and get the contract at all costs, so you lower your prices. This isn’t a productive thing to do in the long run. You need to be aware of what your services or products are worth and stick to the realistic price. You can always ask for a feedback from your customers and create a range of prices you are comfortable with, but those prices should be rational, not emotional.
4. Money management
If you have a small or medium business, it is likely you don’t need a full-time CFO in your company. Still, it would be wise to have a financial advisor who could revise on your income, money flow, and expenditures. These are people who know money better than most entrepreneurs and you need to occasionally use their services, even if you think you’re doing great. Sometimes we don’t know our business is in trouble till it’s almost too late to do anything. Still, even if you got to the edge of bankruptcy, it isn’t all over just yet. By the words of Dean Willcocks Advisory, there is a possibility of creditors voluntary liquidation, which is still your choice and not something that was forced on you if it turns out you have an insolvent company.
5. Admit when something doesn’t work
Maybe you started off with certain products that had been bringing you profit for some time. However, chances are some of those products just aren’t as successful as they used to be. What’s more, some of them may even be damaging your business. Of course, it’s hard to give up on some products – we tend to get attached to the products we created or started our business with. Still, they can be draining your money and giving you nothing in return. It’s time you open your eyes and do a detailed analysis on your products and services. Your hard work should be focused on things that bring you money and on the ones that used to that.
6. Customer service
If you have noticed a downfall in your sales, maybe the problem is connected with the target clients. You need to check if there is any dissatisfaction with your services or products, and to do it often. The best way is to hire a consultant that will help you understand how to give your customers what they need when they need it. Whether it is a platform where they can give their feedback or a blog to leave suggestions, you need to create a direct contact with your customers and your profit should steadily rise.