By: Roberta M. Fisher, Gadd Business Consultants
The percentage of businesses that fail in the first five years regardless of the condition of the economy is 50%.
The number one reason a business tends to fail is the owner making bad decisions and the lack of willingness to accept/make changes. A failing business owner needs to accept that something he is or is not doing is causing the failure.
Many owners make excuses for the failure of their business. The first thing to do to repair your failing business is to eliminate all the excuses. Once you have stopped making excuses you are in a better position to make better choices and make the appropriate changes in the way you are doing business. You must change your methods of conducting business, the old way is just the old way not the better way.
Cutting the cost of labor, product, rent, marketing, etc. is not the cure you may think it is. You must boost revenue, not cut costs in order to have a business that is not failing, but, one that is making money and selling a product the public wants and needs. Raising revenue has never been a reason for a business to fail.
Look at the way you market your business/products. The following three components of marketing your company can make the difference.
- Generating new clientele adds to increased revenue
- Set up a loyalty program with your new and existing clients, this will provide for a sustained revenue
- Spending money on rebranding or re-packaging products could be well worth the expense and effort to generate revenue
These steps will help keep the business afloat and will win over the owner to accepting new changes in products and service.
A good outlook or attitude is always a positive, but it is not a reason that a company will make it or break in the business world. You must be willing to accept change and to fix mistakes along with having a good attitude in order to turn a failing business around.
The owner cannot be successful if they are fearful of change and researching new ideas. An owner’s ego can get in the way also, by building the company up for themselves instead of their customers. Many successful businesses began in the garage, basement and home so do not let low funds cause you to fail.
No one person can do it all, a successful owner knows how to prioritize their time, so their business is running smoothly and efficiently, which means you always have a steady stream of revenue and customers.
If you are behind with your bills, taxes and have no credit, you need to look inside and see what needs to change including yourself. Seek advice by a business consultant, another entrepreneur or friends and family.
Right now, the economy is providing a good time to start your business. Low unemployment, consumer spending is up and economic growth across all industries is on the rise. All of these are indicators for starting a new business, investing in a business or creating value in a business.
Take ownership of your failures and then you can start with a new approach to improve your business.
Reference: https://www.businessnewsdaily.com/11179-bar-rescue-jon-taffer-failing-business-solutions.html by Adam C. Uzialko, Staff Writer