The world of business is a rocky road, and while there’s a whole lot of information out there in the digital realm, all you can ever glean is a tiny piece of a long and winding road map. When you choose to quit the humdrum of the 9 to 5 lifestyle, it can be an extremely liberating decision, but it is also a decision that represents a great deal of risk. In those early months we tend to shrug off the risks, accepting them as part of the territory. Of course the business could fail, but we’re so sure of ourselves and our business plans that we honestly don’t see how it could happen to us. After all, you’ve done all the calculations, impressed all the right lenders and / or investors and lined up a dream team of employees who are completely behind you in helping your vision become a reality.
But, let’s face it, the odds are against you here. We all know that 50% of business don’t make it past their first 5 years and only 25% make it all the way to 15 years. It’s an inevitability that not every move you make will be the right move and very often the difference between success and failure will be knowing that your business is about to fail and taking action accordingly…
You constantly struggle with liquidity
Problem- Your cash flow is the life’s blood of your business and without it you can’t pay your suppliers which means your ability to trade is limited. Your business quickly racks up debts faster than it can repay them and worst of all you’re so focused on handling your debts that you don’t even have time to steer your business in the right direction. You’re too busy putting out fires.
Solution- Talk to a lawyer with a lot of debt and bankruptcy experience like Ronald D Weiss, P.C.. They will talk you through your options. Bankruptcy may help you escape the fall of your business with your reputation and some of your capital intact, but you may be able to find other means of debt relief such as business debt consolidation.
You struggle to secure repeat custom
Problem- You’re doing a respectable amount of business, but rarely see the same faces again and again. Unless you do seasonal trade which deals with a lot of tourists, this can be a problem. Repeat customers are important to your business in a number of ways. They cost less to reach (usually because they’ve opted in to email shoots or push notifications), they are easier to sell to and statistically they buy more.
Solution- Take steps to incentivize customer loyalty. A points system or rewards card or rewards app are all great solutions to help you do this.
You haven’t made any changes in months
Problem- You’re stuck in a loop doing the same old, same old day after day, week after week, month after month. As a result, nobody is talking about you on social media, there isn’t much buzz around your brand and your sales are dwindling. Follow this path and it will lead you over the precipice.
Solution- As tempting as it may be to languish in the “I got this!” stage of entrepreneurship, your business won’t survive if you don’t shake things up. Throw a quick sale, introduce a new product or make some tweaks to your branding. These changes will invigorate your business and draw back new and repeat customers, too!