When The Business Is In Trouble, Take These Steps
Whether you've just recently noticed a downturn in your profits or you've begun to worry about the financial future of your business, there are several steps that you can try to take to get your business back on the right track.
Hire a New Accountant
Sometimes putting a fresh pair of eyes on your finances is a great step to take when your business isn't doing well financially. A business accountant, like those at Broutman & Co., P.C., can act as a consultant to review your numbers and suggest areas where the business could find more income, reduce taxes, and more. They can also help you analyze your budget and determine where you may be spending more money than other businesses, such as on your indirect business costs.
Cut Down Activities
When you're running out of cash quickly, it may be time to put your business in a hibernation mode of sorts. Analyze the activities where there is a lot of cash flowing out of the business. Decide whether these need to be a part of your business process right now or if they can be put on hold until you're sure the business' finances will turn around.
You might want to create a plan for cutting down activities that aren't directly generating revenue, such as perks for employees or business development ventures. Put the money directly into the activities that you know are generating revenue. This can help you bring your assets back up to the level where you can reinstate those other, non-essential activities.
Redirect Your Marketing
Another step you can take to try to bring in more revenue in a critical time is to redirect your marketing. Some tactics are more of a long play, where they won't bring in business right away but will put the business name in many potential clients' minds. When your business is in critical need of cash, it pays to cut down these activities and put marketing dollars into places that consistently bring in customers.
Review Your Next Steps
If you have done the steps above, you might have pushed the clock back on a failing business. This will give you plenty of time to look over your business strategy and determine what led to the business' troubles. Perhaps moving staff around or bringing in a consultant can help put different skills in your management roles so that new business ideas and directions will emerge organically and hopefully lead your business away from a failure.