So, you have started up a business and you are on the dry run stage. However, for some reasons, you think that the business is failing because the gross income is not even enough to cover the business’ expenses. If this is your situation, my honest opinion is yes, you must be right. Your business is probably in a bad shape but it doesn’t mean you can’t revive it anymore. Just like you, I have gone through a lot of lows and highs to my businesses in the past. And to be honest, it was not just one or two failures. I’ve tried a lot of businesses, strategies, and it took awhile before I finally master a few business principles but it was a long journey and I am still learning to date. Here are some ideas I can give about reviving a what it seems like a ‘failing business.’
1. Cut Expenses. There are many ways to cut your expenses. From a simple reduction of paper use and energy conservation, to cutting of what costing the business the most, marketing, staff and supply costs down to taxes. Business owners really invest on marketing. However, maximizing social media marketing can achieve the same effect. When it comes to hiring employees, interns and short-term contractors are options you must consider. Some business owners usually have many short-term employees during peak season and hire very few regular employees. You can also save up to 25% when it comes to your business supply by purchasing goods in wholesale. You can save even more through good negotiation skills with your suppliers. Another cost cutting is to make sure that all business expenses are properly entered to maximize tax deductions. There are many ways to cut your expenses. You just have to look at what costing you the most and be creative about it.
2. Increasing Production. As a business owner, you have to determine how much is the maximum sale the business can earn. After this, the next step is to think of ways on how to actually achieve that. What hinders you to achieve the maximum sale? If it’s the production, then maybe you need to hire more employees or extend working hours. If the challenge is your limited supply, then try to add another supplier or try to negotiate with your old supplier.
3. Upselling. A simple upselling pitch or asking can do wonders. Asking is as simple as providing them options. This will work especially if you are in the food business. McDonalds use this technique and they were able to sell 9 million pounds of fries every day globally, which contributed to their more than $28 million in revenue for the simple question; “Would you like fries with that?” Asking can do miracles indeed.
4. Studying Competitors. When studying competitors, what most business men miss is to include their own businesses. You have to see everything in a broad perspective to see how you can maximize your improvement. Study the service you provide and the service your competitors offer and see what you can do to bring it to the next level. What more can you offer that would attract more customers? Application of the answer can give your failing business a complete turnaround.
However, if these things still didn’t help your business to improve, then it’s about time to decide what’s best for the business. In the next article, I will be helping you weigh up the decision regarding your business challenges. -M.D.
We’d also love to hear from you. Feel free to comment below to share your business experience. You may also email us at mybusinessgrowsbigger@gmail.com for free business consultation. You may also follow us on twitter https://twitter.com/BusinessSavvy2
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