More than 70 percent of businesses fail after their 10th year, according to an article from Fundera. As a novice entrepreneur and aspiring business owner, this statistic can be discouraging. Fortunately, there are always ways to revive a business, regardless of the dire situation they are in. Pumping life back into your dying business is as easy as these four steps.
Cut Non-Vital Employees Loose
It feels extremely discomforting to let people go, but it’s a simple and effective way to give your business a second chance. By letting non-vital employees go, you conserve your financial resources and can allocate it to assets and campaigns that contribute to growth and profitability, such as cutting edge accounts payable software. Employees who contribute nothing and are causing more problems for you should be let go immediately. Assess your current team and identify positions that you can afford to lose, such as receptionists, assistants, and office managers. Only consider re-staffing when your financial situation improves, such as a boost in quarterly sales or a new investor on board. To avoid any more employee turnover, make sure to invest more time and effort into your hiring process. While an HR department is not required, make sure you are vetting candidates thoroughly and systematically.
Rethink Your Sales Approach
Your business may be bleeding because of the marketing campaigns and strategies you are currently running. There is no better signal to go back to the drawing board and rethink your approach than your business nearing bankruptcy. After re-evaluating your business, start looking at possible improvements and solutions to implement. For instance, you might be better off targeting a smaller niche rather than a larger market. Or perhaps you should be doing online sales rather than selling at physical locations. Certain sales and marketing strategies work wonders for certain types of businesses, but fall short when used by others. Make sure you are using the right approach to market and sell to consumers.
Focus on One Thing
Most entrepreneurs make the mistake of trying out too many things and being involved in too many spaces. This might sound like a path that leads to faster growth, but it actually stretches the business’ limited resources too thin. In other instances, a lack of focus could signal too broad of a target market. When your target audience is everyone, you’ll end up trying to please everyone, which can prove costly and ineffective. Take Steve Jobs as an example. When he returned to Apple in 1996, the company was failing, and one of the reasons for this is their involvement in too many projects. To remedy the situation, he killed off many projects and reduced Apple’s product line from 350 to 10 by 1997. The lesson? Just focus on one or two major product lines that have real market potential rather than try out dozens of small products that will probably fail.
Take Greater Risks
While most people would think to play it safe during a business crisis, their best option is actually the opposite. Taking daring risks is usually the best course of action to breathe new life into your business. You’ve got less to lose when your business is dying, and this can be a great opportunity to try out some all-or-nothing plays. That being said, taking on more risk doesn’t mean you shouldn’t plan ahead and calculate the pros and cons. If what you’re about to do is just risky and have no potential benefits, then it’s best to just stay on a conservative course.
Following these four steps should help jumpstart your business back in the right direction. Worst case scenario, you can always sell your business to cut losses short and at least have some money to start over. Keep a positive outlook and see it as a learning opportunity and invaluable experience.
Author Bio: Jeremy is a tech and business writer from Simi Valley, CA. He’s worked for Adobe, Google, and himself. He lives for success stories, and hopes to be one someday.