About 80% of
people who give up their business do so because they assume they have failed to
reach their targets. In this article I will be showing you how to cope with
your fallen business and get it back to life I won’t bore you with many words
so we go straight to the discussion
What is
business failure?
The Wikipedia defines a business
failure as a company ceasing operation due to its inability to make a profit or
to bring in enough revenue to cover its expenses. (en.wikipedia.org/business_failure)
Other people will say it is the
closure or cessation of business activity that results in a loss to its
creditors. Firm that stops working due to lack of sales or profits,
Looking at
all the definitions you discover one similar thing i.e its inability to make
profit, bring in enough revenue now at this stage in anyone’s business, he or
she assume the business has fallen and gives up
Now one thing
about business is that you shouldn’t expect profits and large revenue at first
start many people have the mind of starting a business today and making profits
tomorrow and if its doesn’t come that way then they assume they have failed without
a second thought. If your business happens to lack the inability to generate
profits, revenue etc I will say that’s the beginning of your business success coping
with your fallen business is the beginning of your raising business. Many people
don’t know the signs of a falling business until the business has completely
gone down before the realize the signs it was showing earlier on I will not
talk about the signs of a dying business in this article but if your business
has taken you unaware they are chances that with few steps I will be giving,
you can still get your business up and correct your mistakes.
Sad as it may
sounds the health of a business is not guaranteed forever. Many business men
and women will experience this in many aspects this period is characterized by
low sales, low morale, low ash, low market share, and low innovation is this
period that many give up and many choose another career. They are many factors
that contribute to a fallen business and I am going to put it into two category
first is External factors and the
second is Internal factors.
What is the
internal factor or forces? They are forces that comes from within the company of
business like poor management, poor financial control etc
While the external factor or forces are those
factor that comes from outside the business like government, competitors,
natural disaster etc.
But they are
also top 3 factors that contribute to a fallen business but only few people
knows about this they are
1. Negligence
2. Inexperience
3. Greed
I said I won’t
go into the signs of a fallen business am sorry but I couldn’t but dive into. So
what are the steps to revive a fallen or dying business?
1
Re-evaluate
situation: to treat a sickness, we need to diagnose the patient. The first
place to start if your business or company is falling or dying is to look
within the business that’s the internal forces this is also known as self-evaluation
or self-assessment. To do this they are few area you should look into which are
Strategy
Does this my business have a
directory? Does the business know why its exists? What problem is it solving
and to whom? What is it providing and to whom? What services am I offering and
to whom? Is this business doing the right thing and going the right way?
Many people lack strategy in
their business. They just do what they assume is the right thing perhaps they
copy from others whereas they are decorum in everything so when trying to get
your business off the ground again take a good look at the strategy you
followed which didn’t work and amend it.
People
Are the right people running
the company? Are the right people in the right place? Are my employees committed
to the work at hand? Are they committed the organization success? Are they bad
eggs in my company that are trying to bring me down
Many people employ the wrong the individuals
to work for them some maybe came in through the back door. Some employees are
working in the wrong department because you know the person working the
department he or she is supposed to be too well perhaps is your relative and
you assume he or she will be able to manage the affairs of the company to
arrive at success
Product
Am I offering the best
product/services that I can? Can this business upgrade its services/products?
When tyring to pick up the pieces
of your business together try looking at the kind of product and services you
offered and see if you can improve on them to get more attention.
Customer
This part of evaluation is
very important because the customers are the one making your business grow and
at the same time falling it down.
So the question should be am
I satisfying my customers? Do they like, trust and know my product or services?
If no then you should try to
make sure you upgrade your brand to the likeness of your customers.
Finance
This is a very important
aspect of your business evaluation this aspect controls your whole business
because without money nothing can be done so take a good look of your finance.
Are you profitable? Are your
cash flows sufficient to sustain ongoing commitments and operations? Is the
business or company is large debt?
If your company is very
large I will not advise you to control your finance get someone with experience
in management to do that for you.
Process
This involve looking at the ways things are
done in the business as a whole this include
i. How are my product or services reaching the
public?
ii.
How fast are we in delivering the product or
services
iii.
Who are my competitors(check our article on “who
are my competitors and how can I handle them”)
iv.
Do I need to increase or decrease my workers
Etc
They are also few thing to consider
Location
Did you know that the location of your
business matters a lot? Imagine someone selling a car spare part in river line
area who the heck will buy that? To use and fish or to add to their boat? When sitting
a location for your business you have to be very careful and consider things
like are my targeted audience here? Is it business area? Are they many people
doing the same business or offering the services?
You
as the business owner
Many people will look at all those areas
and find faults in them but will fail to look at themselves in person. They are
questions you should ask yourselves like
Am I ready to do this business? Am I giving
my business the right time it’s required? Am I mixing my business finance with
my personal money? Do I have experience in this business? Etc
References
#Wikipedia
#nijaperneur
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