Turning back a struggling business is surely a daunting task but to give up is not the solution. Entrepreneur of the struggling business is the sole person who knows about the business and can do the magic of bringing it back into shape. In order to do so, a proper coordination and sheer commitment of its team are necessary. Even successful business like online ticket booking platform BookMyShow has managed to recover from hard phase and e-commerce platform Snapdeal which recently faced the same problem has come up with a strategy and launched Snapdeal 2.0.
Many entrepreneurs go through this phase but only some could recover from it because they are determined and put more efforts in the right direction. If you want to get back in the game then try the given below methods:
A good entrepreneur knows whether its business is doomed or there is a still a chance to it. So the best thing to begin restructuring is to review and analyse the mistakes that business made. This will help you to find areas where your business lack behind, and then try to focus on those areas in order to get better.
The time is to recreate the strategy and set new targets according to the present situation. Dont fixate on the long-term objectives but try to accomplish the short term first. Try not to make the same mistakes as before and put more efforts on strong parts.
Having a strategy is not sufficient to implement, what is essential is to discuss it with the board of members, employees before implementation. It is better to have opinions of trustworthy business members rather than taking all decision on by the entrepreneur. Discussion surely benefits as everyone has their own creativity and perspective which moulds the decision into a good one.
It is necessary to cut costs in order to allocate resources properly. An entrepreneur is the leader of the business so it is essential that he/she takes necessary steps to use the remaining resources properly and try to minimise the cost. The most effective way to cut cost is to fire employees that are not productive enough for the organisation like the way Snapdeal did by cutting half of its workforce.
The time to plan is over now the implementation phase begins. Rather than planning one should start applying the solutions to the problems before they start emerging. The key to this step is proper decision making with efficiency.
Try to avoid risks and take more simplified and profitable choice. If you are going through a rough phase then taking risks and investing is not the solution. The solution is to take decisions with low risks even you generate less revenue but there is some surety of not going in loss. Taking high risks may get you the desired revenue you want but there are much higher chances of loss as well and this time business will not be able to bear the same.
Another task that can be done is a survey of potential customers, suppliers, and vendors. The business can always outreach to its potential business associates in order to know where they lack behind and discuss the strategy on the same so that there is a bond of trust between both the parties. After knowing the drawbacks try to improve them.
The key is to discover the profitable areas of the business and work on them. These areas can be the only source of funding at that time and can get you in a better position than before.
Always remember if you panic at this stage then everything will go down so it is preferable if you are unable to raise that fire inside yo0urself again then seek professional help. There are mentors and incubators that hold the hand of businessman and help them to find the success they are looking for. To connect with mentors and incubators you can find the networking solutions easily by registering at Business Exchange online portal BusinessEx.