WHEN YOU REALISE that your business is in trouble and you need it to survive, there is ONE thing you absolutely must do.
That one thing is to take action.
This may seem obvious, but many business owners I have met over the years have prefered to hope that the problems sort themselves out.
In fact, problems are not going to fix themselves. Something needs to be done.
Action needs taking, including recognising that something or several have to be changed if the business is to avoid continuing a downward spiral, on its way to possible insolvency and winding up.
A declining business is relatively easy to spot, as you will see from this chart. The process of decline tends to go through several stages
In my role as a Business Troubleshooter, I have been called-in to help several failing businesses. Some I have been able to help and they are now healthy and profitable again. Several I’m sad to report, had travelled too far down the road towards insolvency and failure to be turned-around or saved.
Business Survival: Top tip
The overriding issue affecting the majority of the problem businesses I have been called into help – is that on hindsight, the directors had let the specific business problem(s) to run on for far too long, without taking decisive action to deal with it or them.
Very often, it was the director’s failure to deal with the problem(s) sooner that eventually put the businesses onto the critical list.
Even experienced company directors can succumb to the temptation of denying that their business problems are as serious as in fact they are, or that without their full attention, they might develop to become more serious and could even bring the business down.
If you think that your business is on the critical list, then in most cases, here are three important things you should do:
- Identify the significant business problems and describe them with clarity. Describe each problem on no more than one page of A4. Score each problem on a). Its ability to bring the company down and b). Urgency.
- Face up to and accept the problem(s) exist. Then commit time and resources to resolving them.
- Next, take decisive action to resolve them as quickly as possible. Focus on the most dangerous and urgent of the problems first. Make eliminating these problems your number one task.
In any business, never let developing problems with the potential to become significant problems to fester unchecked, for a moment longer than you have to.
If you need to work out how to save your business and to discuss your options with Paul, in the strictest confidence, please contact Paul here.
You may like to read more about this topic – Cash flow problems?