So many small businesses fail within their first year, and with the economy struggling through the pandemic, many more have fallen victim to this unprecedented time.
Though this may sound bleak, there’s plenty you can do to get things back on the up. Your business can be saved, and you don’t have to be another negative statistic.
To help you generate some ideas to get things heading back in the right direction, here are five strategies to help you save a struggling small business:
- Ditch The High Cost Of Space
Contracts for warehouses, offices, and other operational spaces can be expensive for a small business. By ditching these contracts as soon as you can, you’ll save yourself a good amount of money. You can use something like self-storage for stock, paperwork, and equipment. It is secure, flexible, and often comes with contracts that allow you to cancel within a few weeks or a month.
For daily operations, a serviced office can be a lifesaver. It enables you to impress your client with modern decor and a professional setup, but you’re not tied into any hefty contracts, so it won’t drain your budget month on month.
- Cash Flow A Problem? There Are Solutions
The main reason businesses fail in the USA (42%) is a lack of market need, which is tricky to resolve once you have gotten going and is best avoided with lots of market research pre-launch.
The second most common reason businesses fail is a lack of cash flow, which is far more fixable. There are options like loans, angel investors, grants, presales, and crowdfunding (to name just a few).
If you have budgeted and cut all your costs, but cash is still a problem, seek out some funding to support you until your finances are looking healthier.
- Seek Help
Business owners under 30 are more likely to have their businesses fail. This suggests that a lack of experience may be the core issue for younger entrepreneurs.
You may need a mentor, a financial advisor, guidance from more experienced entrepreneurs, or even support from your peer group. The most important thing is to push your ego aside and reach out – your future depends on this.
- Charge More
It may seem a little out there to think that charging more for your products or services is a good idea when your business is failing. However, studies have revealed that many business owners price a product or service low to beat the competition, but they do it for so long that they price themselves out of the market. With that in mind, it might be worth charging more for your products or services, with a focus on ensuring you remain competitive without selling yourself short.
Slapdash business management can cause companies of all sizes to fail quickly. Effective business planning is crucial and should always include:
- A clear list of capital needs
- Budgeting details
- Projected cash flow
- Market research
- Competitor analysis
- Freelancer/employee requirements
- A clear description of the business
- A clear five-year plan for the business
- Defined business values and ethics
No matter how far down the line you are, there is always a need for a clear business plan. In fact, it could open your eyes to new strategies for saving the business from failure.
The tips above should help you generate more ideas to save your small business. The most important thing is to keep trying – no route to success is straightforward. Hopefully, these challenges will only make your project stronger, helping you create a thriving and successful future.