It’s never a hundred percent sure to succeed when it comes to running a business. Truth is, no matter how original and unique your business idea is, a bump in the road is something inevitable and we can never be totally ready for. Eric Lefkofsky, CEO of Goupon, said one time in Chicago Ideas Week that failure is part of the journey. In fact, he stressed out that when it comes to business, it’s never really win or lose but win or learn. Having said that, it’s truly important to have some ideas of what to do in case the business is heading for a possible failure.
So, what is the number one hint when a business is failing? First of all, you have to determine the current status of your business before you even conclude that the business is failing. Below is a business’ progress model that I made to help you determine the stage of your business to help you analyze the possible solutions.
Now, you have to analyze in which particular stage your business is currently in. Once you have figured out the current stage of your business, the next question is, what made you think that the business is heading for a possible failure? Most of people think that a poor net income is the number one factor that decides whether the business is pushing through or not. As we know, net income is the amount left over after all the deductions are made while gross income is the total profit. However, as long as the gross is covering all the dues on time, the business is worth giving it more time even if you have a poor net income.
Now, I want you to answer this question honestly. Is the gross income enough to cover the business’ expenses? If the answer is no, then please see article REVIVING A FAILING BUSINESS. However, if the answer is yes, then please continue reading this article.
The fact that the business can sustain itself (by having enough gross income) and pass through the survival period or the dry run stage, means it is promising but maybe it needs more time to grow. You just have to maximize the business’ income and by doing so, you have to focus on the third stage of the business which is the business growth. Here are some of the things to help you grow your business.
1. Tagline. It is a one-liner principle or slogan of your business. However, most business’ tagline doesn’t really agree with the business’ reputation. As a business owner, you have to remember that the business’ reputation is everything. It is more important than the business’ tagline. To protect your reputation, all you have to do is master a simple art of keeping and changing. Keep doing what works, change what doesn’t. Making your tagline and reputation as one takes consistent practice and time. However, if you can actually deliver what your business claims to, rest assure that your popularity will soar effortlessly in no time.
2. Advertisement. Good advertisement at the right time is always worth the money. However, there are actually many ways to advertise especially if your budget is tight. If you are creative, you can actually make good use of social media. It’s free and it’s what everyone is into these days. You can create a page, or social media account and ask your friends to share it. One of my favorite restaurants in my old town take pictures of their customers. They upload it on their social media account with a nice thank you message. Every month, they pick customers who will be the winners of free dine in. They became the talk of the town in less than six months.
3. Customer’s Feedback. Bill Gates often said "We all need people who will give us feedback. That's how we improve," and that means good or bad feedback. Communication with customers is indeed important for business growth. Most of my business ideas and innovation actually come from unhappy customers. By listening to good and bad feedbacks, we can actually learn a lot.
4. Connections. It is very advisable to attend business expo once in a while. Being active to events like this where you can actually showcase your business is one way of building your reputation. It doesn’t only help you win potential customers, it also helps you win new friends, business people like you from whom you can learn a lot. -M.D.
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