7 turnaround strategies to revive a dying business
HARDLY can you turnaround a dying business without talking about the people behind it. A business cannot function by itself, people make it function. People make or break your business. This is why you need to re-employ. To resurrect a dying business, get the right people on board and get the wrong people off, period!
Lack of innovation is one of the warning signs of a dying business. It is impossible for a business to remain relevant in the market if it fails to introduce new products/services. People change, market change, technology change and so must your business. If you refuse to change, by constantly innovating your products/services, you are doomed. To bring your dying business back to life, do something new!
One of the consequences of a dying business is the negative impact it has on the brand. Your customers begin to lose trust in the brand as their satisfaction level declines. Negative word of mouth marketing starts to spread and the brand is no longer known, liked or trusted in the market. To correct this negative association with the brand, you have to kill the old brand and create a new one!
This doesn’t necessarily require a total change in the brand name; only do this as a last resort. What rebranding means is to give your business a new meaning, a face-lift and a new brand identity. This is why in almost every turnaround situation; the company comes up with new marketing campaigns, new logos, new brand colors, and new slogans to let the market know that things are not the same as before.
As much as I would like to tell you that you don’t need money to resurrect your dying business, we both know that would only be a lie. One of the most obvious signs of a dying business is lack of money. You are almost out of business because you are running out of cash. So, to get your business back to life, you need to pay close attention to finance. The easiest option would be to seek external funding, but this can be a very daunting task especially if the money in question is much. So what do you do? Start sourcing for funds from within the business by doing the following;
Take from your personal savings.
Sell off some of your fixed assets to raise immediate cash.
Cut costs by reducing your operational expenses. Look for every unnecessary expense and cut them off.
Lay off every redundant staff. Stop every extra incentive or benefits for a while.
Don’t try to solve all your financial needs at once; it will only further put you in more financial mess. Break down your business financial needs into sizeable chunks tied to specific needs and begin to fill them with the excess funds gathered.
Seek for strategic alliance from your partners like your suppliers, they can offer you trade credits.
Only after you have exhausted these internal funding options should you seek external sources like; borrowing from family and friends, angel investors, bank loans, factoring, hire purchase, equipment leasing etc.
After all is said and done, there is no way to bring your dying business back to life by mere words; you need to do the work. And not just as you have always done before, you need to re-work the way you used to work. You’ve probably been engaged in random work rather than focusing on performance-driven work or goal-oriented work. It is one thing to work and it is another to align your work with the strategic goals of the organization. Only by doing so can the business be saved from dying. Every work must be broken down into processes, must have an owner and must have a goal or key indicators to track performance.
Tito Philips Jnr, an unusual Nigerian that is MAD – Making A Difference. He leads a TRIBE of Unusual Entrepreneurs that raise the bar of entrepreneurship.
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