7 simple steps to turn your business around
With the economic climate still creating numerous cash flow challenges for British businesses, exemplified by the recent surge in corporate insolvencies and the ongoing uncertainty surrounding Brexit, it’s understandably a worrying time for many business owners.
Tackling the challenges being faced head on can be a daunting task, particularly when they’re causing sleepless nights and stress. But this is the first step to finding the solutions to any worries you may have, getting your business back on track and moving in the right direction once more.
Here, we offer 7 steps to help get your business back on track.
1. Cut costs
The first step to take is to work out where savings can be made across the business without compromising your performance. Could you benchmark your existing suppliers and identify a more cost-effective alternative? This can apply to utility providers, trade partners or funding providers. Making cutbacks can be difficult, but it can deliver fast results. If something is not adding value to the business, then it’s probably time to ditch it.
Take a look at these 5 key areas to save your business money for more tips on how to cut costs.
2. Ask for help
When faced with cash flow problems, finding a suitable funding facility can be a good place to start. With so many products and lenders on the market nowadays, it isn’t always easy to find the right combination, which is why a specialist finance broker can be a good starting point. They will be able to identify the right facility and funding partner to meet the business’s specific financial needs, whether it’s to provide an immediate cash flow boost or sourcing longer term turnaround funding.
This blog post looks at why you could benefit from using a commercial finance broker.
3. Stay in control
When faced with financial hardship it can be easy for management to lose focus which, in time, will only add more difficulties to the situation. But it’s important to spot this early and make the necessary changes to get back on track. First, produce up-to-date information across all areas of your business to identify clearly where the problems are. Then, formulate a plan setting out the changes that need to be made, how critical they are and a timeframe for rolling them out.
Take a look at this post on how to spot a cash flow shortage before it happens for more ways to spot the problem early on.
4. Stick to what you know
If you’re faced with difficulties, now is not necessarily the best time to start experimenting with radical new business ideas. Stick to what you know and what you are good at. Customers come to you for a reason – and you need to make sure that you’re delivering to the best standards you can, rather than spreading yourself too thinly across a wide range of products and services. Only once you have perfected your core business should you consider reaching out and expanding. Likewise, any future diversification should only be undertaken after fully assessing whether there’s a real market need and ascertaining potential profitability.
This post on why growing too quickly could be your biggest mistake explains some of the challenges in more detail.
5. Communication is key
As with all problems, it is essential to tackle them head on at an early stage. If you are really going to turn your business around your staff need to be on the same page as you. Management should always communicate promptly and effectively with staff in order to improve employee morale and productivity. Rather than one-way communication lines, ensure you provide an opportunity for employees to feel involved in the business’s future by asking questions or providing feedback. Reassurance that the business values their opinions will go a long way.
Here are four more traits that define a great manager. Could these help further motivate your team?
6. Stay positive
When business is stretched it can be all too easy to dwell on your company’s failures while the successes often go unnoticed. This can be very damaging to employee morale and productivity. So make sure you take the time to offer positive reinforcement and talk about areas of the business that are doing well and exceeding expectations. Take time to review the successes to understand why these areas are working well and then use this information to improve parts of the business that are underperforming.
Struggling to find the positives? Here are 5 ways to fall back in love with your business.
7. Act fast
Ultimately it’s vital to act quickly to help turn around your business’s fortunes. Don’t stick your head in the sand. Spot the warning signs early and act promptly to put the solutions in place to increase the chances of transforming your business for the better.
If you need help finding a solution for your business, as a commercial finance broker we can help. Contact us on 0800 9774833 to discuss your requirements with one of our helpful team.