How to Revitalize Your Struggling Small Business

If you are in your do-or-die phase for your business, here's what you can do to turn things around.
 

1. Go back to the drawing board:

    
   One of the best things you can do for your business strategy is to connect with new mentors who can bring a fresh perspective. As entrepreneurs, small business owners are often multi-tasking and caught up with everyday execution and survival that it is easy to lose sight of your long-term vision. Connect with a mentor who can get you back on track and add vital energy points to your weak links and help you move forward with a plan of action.
    

2. Innovate your product or business model:

    
   While you may have lined up your product or service as a solution to a problem area, take a 360 degree check on how it is really solving the problem. Look for 'wow' factors that'll not only help you sell your product but generate long term engagement and loyalty. The best brands weren't built in a day. Think of what can keep existing customers happy, draw them back and even provide references.
    

3. Restart your marketing:

    
   There are many different facets of marketing that can build your brand and generate awareness & leads. Sit down with each channel to evaluate what's worked for you in the past and how you can leverage it for your future. Social media, PR, offline events, online advertising, website lead pages, and SEO are all strategies that can give both short- and long-term gains. Look for a new 'hook' that can get people interested in your product offering and rejig your communication around it. Look for partners from widely different industries and explore synergies that can lead to a mutually beneficial tie up.
    

4. Choose a reliable funding partner:

    
   The most common reason for a business to stagger is money or the lack of it. Choose a funding partner who can be patient and believe in you and your business to hit the jackpot in the long run. Approach financers by charting out a roadmap on how you plan to pay off your debts and how soon your business can start showing first revenues. You can approach investors, consider a bank loan or go with a better bet on a NBFC like Hero FinCorp whose promise of quick service can provide the much needed 'Vitamin M(oney)' faster than you think.
    

5. Let a few colleagues go (if you have to):

    
   No one likes to hire and fire but one of the tough realities of small businesses is that you need extremely trustworthy and talented people who can deliver on time and stick around until your business scales. As much a conundrum as it is to find such people, you'll be pushed out of business if you keep working with the wrong ones. The chopping axe is most likely to fall on people who may be drawing a huge pay check and not creating sufficient value.
    

6. Adopt new technology 

    
   Technology is critical to the success of any business. It aids in increasing productivity, lowering costs, and improving product quality. If you own a factory and a failure to deliver goods on time is the reason for your struggling business, it is time to invest in new technology.
    
   Assume you own a clothing manufacturing company. You were given an order for 15,000 clothes. However, your total staff size is less than 30, and the order deadline is in one week. In this case, do you believe your employees will be able to meet the requirements by the deadline? It certainly looks very difficult. However, if you have advanced technology and equipment, you can always stay ahead of the production requirements and unforeseen challenges.
    

7. Manage your business cash flow

    
   Poor cash flow management is another common reason for facing struggle in business. If your company's fund outflow exceeds its inflow, you might struggle to stay afloat in the market. However, there are several approaches you can take to solve this problem. For example, you could decide to sell your company's outdated or unused plant, equipment, or furniture. If you are unsure about upcoming orders, it is best not to stockpile inventory. Another piece of advice is to lease. Instead of blocking lakhs of rupees from your revenue on the purchase of costly machinery or office premises, it is better to get these things on rent.
    

8. Conduct SWOT analysis:

   
   SWOT is an acronym that stands for strength, weakness, opportunities, and threats. Every business, regardless of size, should conduct a SWOT analysis on a regular basis to assess the health of the business. Let's break these points down for a better understanding:

    

   • Strength: Every business has some strength that others might lack. It could be an efficient workforce, a unique business model, advanced technology, or other operational factors. When nothing else seems to be working in your favour, focus on your business’ strength to bring it out of bad phases.
    
   • Weakness: No business is perfect, and every business owner has some weak points. It could be inexperienced top management, lack of advanced technology in business, or a poor marketing approach. But when you know your business’ weakness at the right time and start working on it, you can overcome any negative repercussions. 
    
   • Opportunities: Keeping an eye out for opportunities ensures long-term business success. When you are aware of an opportunity ahead of time, you will have enough time to make financial arrangements, hire more skilled personnel, and so on. Taking advantage of new opportunities is critical for reviving a struggling business. 
    
   • Threats: In the business context, threats can be either internal or external and must be timely dealt with to ensure smooth operations. For instance, as a business owner, you need to be aware of external market conditions and various policy changes that affect your company. Failure to comply with government regulations may result in the closure of your business. On the other hand, internal threats are related to fraud within your business ecosystem, overspending of monetary resources, etc.

    
   Last but not the least, success is 70% optimism and 30% hard work. Remaining positive and focused on your vision is your best formula for success.
    

Disclaimer: This post was first published on 19th August 2016, and has been updated for the latest information, freshness, and accuracy.