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What Can you Do to Save a Small Struggling Business?

What Can you Do to Save a Small Struggling Business?

If your small business is on the verge of going under, then you will know how anxiety-provoking this can be. You may feel as though nothing you do is going to turn things around and that you are facing one disaster after another. If this sounds like you then don’t give up hope just yet.

Acknowledge It

Acknowledging your business failure is the first step to taking charge of it. When you pay attention to the number of times your inner voice gets in the way, you will notice how often it vocalizes. This can stop you from doing amazing things. When you start to think negatively, challenge it. Tell yourself you can do this, and that you are going to fight back. 

Do a SWOT Analysis

A SWOT analysis is an exercise that you will adopt so you can identify your strengths and your weaknesses. It is a very good exercise that you can use to analyze your current performance as well as helping you to find out the things that could be going wrong.

Understand your Target Market

It is imperative that you know your market. The more you understand your customers, the more you’ll understand where you should be focusing your efforts. Develop a strategy that is right for your business and make sure that you are always making decisions based on data.

Hire An Accountant

Another thing you need to do is hire an accountant. If you don’t hire an accountant then this will make it harder for you to know your numbers. An accountant can also tell you where you are hemorrhaging money, so you can make the best decisions going forward. Hiring a CPA firm can also help you to know which customers are paying you late, as this could be significantly contributing to your business failure.

Prioritize What You Pay

If you want to keep your business doors open then you need to trim the fat. It is possible for you to start by cutting discretionary expenses. You can then try to cut travel expenses or reduce your general utility usage so you can lower your bills. The last place you want to be cutting costs is with your team. If you find yourself in a tough spot, cut down on employee hours, and then compensation. If this isn’t enough then your only option would be for you to lay them off.

Manage Cash Flow

As you know from the stats, 82% of small companies fail because they have issues with their cash flow. Cash is king, and if you do not have a consistent flow then this will end up bleeding you dry. If you want to protect your company then try and forecast what is coming in and what you have going out. Use the forecast in combination with your sales predictions and your general expenses, so you can see what you have at any given time. This will help you to weather any future storms that may come your way. 

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