About one in 12 businesses close every year. Meanwhile, only 50% of small businesses survive their first five years. Only a third survive beyond 10 years.
It’s normal for your company to struggle at one time or another. With the coronavirus taking its toll on many businesses, companies are looking to make a change. It’s not enough to rely on your previous business plan during this hectic time.
Instead, check out these nine key steps for struggling companies. With these tips, you can get back on your feet and survive despite COVID-19.
Don’t let the virus take down your company. Instead, discover a solution with these nine tips!
1. Plan It Out
The first step that’s essential for struggling companies is to reassess your previous plans. Everyone will need to know about your company’s future plans before you can turn around the business, including your:
Each group will want to know how they fit into your new plans. They’ll also need to know how they can help. Your employees, investors, and even your bank might also have helpful tips that can help you turn around the business.
Make sure to review various components of your plan, including your:
- Business plan
- Sales plan
- Marketing plan
- Operations plan
Each plan can impact the other. For example, you’ll want to adjust your marketing plan to better communicate with customers who are staying at home. It can help to highlight the value your business has to offer during this trying time.
Meanwhile, your sales team will need to adjust how they approach potential customers. Their sales pitch will need to reflect the current issues customers are facing.
As you develop new plans, make sure to consider both good and bad potential scenarios for the future. What’s the worst-case scenario and how will you react if that time comes?
Developing a plan now will help you avoid trouble in the future. Otherwise, you’ll struggle to make decisions that keep the best interests of your company in mind.
2. Meet With the Team
Next, you’ll want to meet with various members of your team.
Gather the key personnel involved with your business, including your C-suite members and board of directors. Have an open floor discussion about how to turn business around.
Make sure to go into this meeting with a plan of your own. Otherwise, your team might lose confidence in you. They’re expecting you to have a vision for the future of your business.
Try to remain flexible and open-minded during this meeting. Have your team work together to develop plausible solutions.
Once you meet with key members of personnel, you’ll need to talk to your employees. Struggling companies that fail to keep their employees up-to-date could lose talent.
First, admit the issues the company is facing. Remain honest. Let your employees know your new plans for the future.
You can also ask your employees for their input regarding the new business plan.
3. Speak With Your Customers
It’s important to communicate with your customers before rumors start to spread. Otherwise, everyone will leave the sinking ship.
Don’t try to hide the problems you’re facing. Instead, inform customers about the situation. Let them know your future plans to fix the problem. Try to remain reassuring without making promises you can’t keep.
4. Talk to Vendors
Don’t forget to meet with your vendors as well. Struggling companies that neglect their vendors could lose vendors when they’re needed most.
Word will likely travel before you have the chance to alert the right people. Make sure to prepare a statement that outlines the problems you’re facing and your plan to fix them. You’ll likely receive a lot of concerned phone calls.
Having a statement prepared will help you respond quickly to these concerns.
5. Contact Tax Authorities
Are you struggling to pay your local, country, state, or federal taxes? Approximately 29% of small businesses do because they ran out of cash. Make sure to alert the tax authorities right away.
Most tax authorities will work with you to find a solution. It’s easier to navigate these issues and turn around your business if you communicate with the authorities.
If you fail to pay, however, you might have more problems to deal with in the future.
Don’t forget to contact your bank as well. Don’t email them. Instead, call your loan officers or try to meet them in person regarding your line of credit or loans.
Show them you’re confident and ready to work toward a solution.
Looking for a solution to your current cash flow issues? You can read more now to discover a potential solution.
6. Keep Essential Employees
No one likes letting employees go. However, it’s important to focus on ways to keep your company afloat. To turn around companies, it’s often necessary to focus on the employees who are generating sales.
If you can afford it, you might want to cut an employee’s hours instead of letting them go altogether.
7. Cut Costs
Take a look at your current expenses. Where can you cut costs?
Cutting expenses is a good way to buy yourself a little time. Try to create a breakeven analysis or a proforma income statement to explore areas where you can save money.
8. Assess the Brand
What is the core value that your business offers customers? You’ll want to focus on maintaining that value, even during this trying time.
If you’ve forgotten the value your brand offers, there’s a chance your customers have, too. Recover that value and use it in your marketing messages to reconnect with your customers.
9. Adjust Operations
Once you breathe life to your brand again, you’ll need to assess your current operations. Can you change the current way you deliver products or services to your customers?
For example, you might want to reschedule an upcoming conference by converting it into a digital video conference. You can also start making deliveries instead of relying on people to come into your store.
Make sure to consider the changes your customers are making. For example, people are going out less often to avoid spreading the virus. With that in mind, you’ll want to look for ways to go to customers instead of waiting for them to come to you.
Making these adjustments to your operations now will help you generate sales.
Turn It Around: 9 Tips to Help Struggling Companies Rise Again
Ready to turn it around and start boosting your business again? With these nine tips for struggling companies, you can get back on your feet. Don’t let COVID-19 slow you down!
Searching for more ways to strengthen your business? Check out our small business tools today!