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So Your Business Fails: Here’s How to Turn It Around

by Suzanne | shared from FeeFighters |

Many business owners in these uncertain times are looking for a way to turn around their flailing businesses. The economy has affected many, but the good news is that with a well thought out plan, it is possible to make the best of your business—even in these times.  If your business needs some life infused into it, pay attention to this step-by-step plan that will help you get your business back on the right track.

Know Where You are Financially

Shooting from the hip financially won’t work if you’re serious about breathing life back into your business.  You’ll have to get serious about creating and then staying on top of things like your sales projections, the cost of goods, your gross and net profits, expenses, cash flow projection, as well as an estimate of the assets you’ll be required to purchase and the debt liability that you’ll face in the immediate future.  Once you have all these numbers up-to-date, use them to outline a financial plan that will take you through the next couple of years.

Know Where You Are in the Market

Gone are the days when business owners can afford to throw caution to the wind in their marketing efforts and simply hope they get the best results.  For a complete turnaround, you’ll have to develop a strategic marketing plan that is based on solid research and hard numbers.  Do this with overall market research of your industry, and then narrow down your research by competition, product, pricing, sales, Internet and lead sources.  Once you have a complete picture, you’ll be able to tightly focus where you spend your marketing dollars by determining what really works and what doesn’t.  A good place to start your research is with the U. S. Census Bureau, which has a huge accumulation of facts and figures listed on their website.

Know Where You Are in Your Organization

It can be tempting to get your company to the point where it almost runs itself, but when attempting a turnaround, you’ll need to develop an all-inclusive management plan.  That means that you’ll no longer be able to delegate the key aspects of management organization, but instead, you’ll need to become attuned to exactly how your company runs and what role each employee plays in it.  Start by creating detailed job descriptions if you don’t already have them, and make sure that each employee understands the role that they’re to play in the success of the company.  Next, organize the way the company is run by creating charts and long term management plans that everyone is aware of and adheres to.  Make each person accountable for their role and, if possible, tie in compensation to the achievement of those goals.

Start From the Beginning

Now that you have all the current facts, figures and projections, it’s time to re-create your business plan.  Chances are that your old one is obsolete, and you’ll need a road map for your turnaround.  In your new calculations, you may discover that you’d underestimated your necessary cash flow, or that you’ve been targeting the wrong market—either way, you’ll need to start from scratch and determine exactly where you want your business to go and how it’s going to get there.

When a business is in a slump, the owner has two options: either sit back and watch it go down, or become proactive and do whatever it takes to make a comeback.  If you find yourself in this situation, take the advice above and make every effort you can to ensure that your business will be around for a long time to come.

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