2017-11-30 00:00:00Business InsightsEnglishLearn how to turn the fortunes of your struggling small business around. Discover four useful tips to improve cash flow and help save your...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/12/Troubled-small-business-owners-research-recovery-options-on-tablet.jpgIs There Still Hope? Tips to Save Your Troubled Business

Exit Plan: Guide to Selling, Closing or Leaving Your Business

Is There Still Hope? Tips to Save Your Troubled Business

Your small business may not be making the sales you had anticipated, but don’t despair, there are plenty of things you can do to turn things around. Take a step back and look at your business as a whole to see where improvements may be needed. Often, only small changes are required to make a big difference and save your business.

Minimize Expenses

Reducing your expenses provides you with additional cash flow to reignite your small business. Track your operating expenses using accounting software to determine where you can make savings. For instance, you may discover that you can reduce your monthly office stationary order. If you rent out an office, consider working from home or in a coworking space. Most coworking spaces don’t require long-term leases, which gives you flexibility while trying to cut costs. You may want to reduce your headcount or introduce job sharing to minimize wage expenses. Instead of hiring full-time employees, you might use freelancers or contractors to complete work on an as-needed basis. Investigate if there’s software available that can automate your manual, time-consuming processes and boost productivity.

Marketing Tactics

Introduce new marketing tactics to reinvigorate your sales. If your small business is struggling to attract new customers, offer enticing referral promotions to your existing customers. For example, if you operate a chimney sweep service, you could provide a 10 percent discount to existing customers who refer their family and friends. You might offer a discount coupon to customers who share a link to your webpage on a social media profile if you run an online store. Consider discounting your low-margin merchandise to lure customers to your store who may then purchase your high-margin goods. Say you own an electronics store, you could sell your batteries at half price to encourage customers to visit and look at your higher-priced items.

Strategy Change

If your business is struggling to stay afloat, you may need to review your business strategy. Conducting a strength, weaknesses, opportunities, and threats analysis helps you determine where you may be going off course and how you need to change direction. You may discover that the current state of the economy is a threat to your premium range of products. Introducing a discount range that targets frugal customers may be all that’s needed to boost sales and turn your business around. If your small business is seasonal, think about offering other complementary services at different times of the year to increase your revenue and stay operational. For instance, if you offer home gardening services in the spring and summer, you could provide a snow shovel?ing service in the winter.

Rebrand Products and Services

Rebranding your products or services may help turn your business fortunes around. Customers may stop purchasing from you if they perceive your brand as outdated or associated with a particular demographic. If you organize golfing tours, young golfers may think you target older golfers and not sign up. You could change their perception by offering a repackaged tour that includes a pub run instead of drinks in the clubhouse. If your business targets environmentally friendly customers, rebranding your products in recycled packaging materials may lead to increased sales and generate new interest in your goods.

You can attempt to turn your troubled business around by trying things to reduce expenses and boost sales. Improved cash flow is often all that is needed get your business out of trouble and back into the black.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.