Over 50 percent of businesses fail within the first five years. However, failure doesn’t happen overnight. If you take a closer look at the functioning of a business, you’ll spot key signs that can help you determine failure months before it occurs. Some of the signs include poor cash-flow, low sales, lack of innovation, and inability to embrace digital transformation.
Oftentimes when companies see failure in the foreseeable feature, the first thing they do is cut expenses, but that just slows down what is inevitable. Instead, they should take measures that breathe new life into business operations. So what can you do to give your dying company a jolt of energy that puts it back into thriving mode? Here are a few tips.
1. Be Ready For Digital Transformation
Digital transformation is happening, and no business is immune. The collision of the offline and digital world is affecting every small business by definition. Also, modern customers have high expectations from the companies they do business with; they expect the same personalized experience on a company’s website as they do in its retail stores. Value chains, processes, and internal IT systems will be essential to embracing digital transformation, but businesses will have to harness the capabilities, passions, and skills of external solution providers to break the struggle.
Luckily, external partners are available for every type of business. Whether a company needs assistance with digital marketing efforts for a rehab services, or an advertising campaign on Facebook for medical devices, specialized agencies exist to get the exposure the business needs. Partners will allow companies to leverage capabilities like lead generation and paid media campaign optimization so that businesses are able to strengthen their footprint digitally. And because compelling customer experiences are table stakes for all organizations, there is big opportunity to work with a partner to keep up with the relentless speed of digital transformation.
2. Become A Specialist
When a company tries to do too many things, it risks stretching itself too thin. This is a major reason why business owners should consider getting strategic with their approach. For instance, Steve Jobs returned to Apple in 1996 and cut down the product line from 350 to only 10 products, removing several projects including the popular Newton that led to $100 million in expenses. Just after a few years, Apple became a specialist in the iPhone, which was the turning point in the company’s history.
So, if a small cookie business is failing because there’s too much competition, it can try niching down to gain a competitive edge. For instance, it can only target shoppers who are looking for cookies on special occasions, such as weddings. Another thing it can do is offer a subscription-based service where it delivers cookies weekly or bi-weekly to customers. Identify where the gap in your target market is and put deep thought into how you can stand out.
3. Get People Involved
Employees are a company’s most important assets. When a business is failing, it should re-evaluate not only its strategy but those who are responsible for execution. If needed, replace workers who are slowing down business with personnel who are passionate about the company’s mission statement.
In that same vein, business leaders and executives should let go of their pride and follow in the footsteps of successful top CEOs who admit their faults and display genuine compassion to help re-boost and re-build their corporations. When business leaders are willing to change for the betterment of their company, employees follow.
If the ship is sinking, take the time to assess your business’s situation, and evaluate all the potential changes that can be made towards a new outcome. Whether it is a simple reallocation of budget towards improving the business’s online presence, or a radical pivot to serve a specialized niche in your field, consider all the possible options that can make the most positive impact for your company.
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