In August, 2017 there were 29.6 million small businesses in the US. The statistics shows that about 69,4% (which is two-thirds) of such enterprises survive their second year in business. That means that more than 20% of small businesses fail in their very first year.
It is hard to start your own business. But it is even more challenging to keep it going all the time. How to guarantee the business growth, revitalize it and make sure that you will be one of those who survived the 10th year in business (which is 32.8% of entrepreneurs by the way)? Reach the following tips to breathe life back to it.
Analyze the Current Situation
Find some time to gaze into how your business works at every level. Check everything, including the quality of the services or the products you are providing. Any small detail, like time-management of the employees, can spoil a mechanism of the business growth. Check everything to see what is working wrong and correct it.
You should especially pay attention to the marketing initiatives of your business. Which of them increase the number of sales? It may be a problem if you can’t decide which strategy is effective and which one is not. Target your marketing campaigns at the right clientele. Survey your existing customers to ask what they like. You can even call or write past clients to ask why they stopped cooperating.
Analyzing will help you finding mistakes you make on daily bases.
For instance, here is a report by Statista.com:
Ask for an Outside Assistance
It is often quite helpful to turn to an outside organization. Sometimes a team does not notice a problem, that a fresh look can recognize immediately. An outside expert can be more informed about the new technologies, marketing options, and other business growth strategies. Conducting an extra research on your own is also helpful. But hiring a consultant and performing the business activities on the new information is necessary, even if it will cost a dime.
Small Business Growth Alliance (SBGA) is one of such organizations. It has almost two decades of experience in helping out businesses. This Alliance is created by small-business owners. It navigates the obstacles and challenges that businesses face nowadays. SBGA provides its members with the products, that help to meet the business requirements— from electronic payments and search engine optimization to accounting and payroll services.
You can also read about the support network for small businesses.
Reevaluate Your Budget
When the business needs revitalization, it is tempting to cut recurring expenses, like salaries for the employees. But before making a cut it is vital to consider the value of each expenditure, especially the ones touching human resources. Cuts on payroll can lead to hidden costs, like damaging the morale of an employee and killing team spirit. You’ll be surprised to learn how some people manage to run their business on $100 only!
Make a Dramatic Change
In some cases, a dramatic change is a key to the business revitalization. For example, the old name of a brand does not say the client what it sells. Rebranding is the best step in such a situation.
Perhaps a new technology is a solution. Every option that is worth considering when it comes to business revitalization. It means implementing changes, even if the team is not comfortable with them. Developing plans and getting advice are good things, but they are useless until you turn them into reality.
Alternate the Business Model
An outdated business model can lead to bankruptcy any business, that has been successfully operating for a long time. Changing business model is not a simple process, but it can save your business from shutting down.
Alternating the business model does not equal changing products and services you offer. They can be slightly modified, but the main focus should be put on changing your marketing, delivery and pricing practices.
Look for the Right People
It is hard to keep the business afloat if people you work with do not share your vision. So stop cooperating with people, whose aim differs from yours. Find the ones that will resurrect your dying business as soon as possible.
If you are sure about every team member, make business revitalization their target. Get your team together and inform them that it is time for changes. Get input from every team member. Ask everyone individually if he/she has an idea about improving the business performance.
The Bottom Line
There is no universal business strategy, that can revitalize business immediately. Reasons, like failing to upgrade to newer technology or economic downturns, vary considerably but can affect the bottom line of the company in the same way. You have to analyze what has led to the current situation and to create a new plan.
The earlier you start business revitalization, the better. You can spend more resources and less damage to repair. Keep a check on potential problems and solve them till you promote small business growth or have a successful business.
P.S.: If you do choose to fund your business, read about fast business loan options first.