Even with the optimistic forecasts meant to buoy a nation still smarting from “The Great Recession” that keeps on giving, the fact is that many small businesses are struggling these days just to remain in operation. For the owners and employees of these ailing companies, some “real” optimism needs to be sent their way. So here it is: If you own a struggling small business there are some things you can do to help prevent it from hitting the rocks. Here are four action steps:
1. Stop right now and take stock of the situation. The first step in bringing some health to your business is diagnosing the problem(s). Take out a piece of paper or a white board and identify the areas of your business that need improvement. What do your financials look like? Are you paying your bills on time? Are you generating enough revenue? What is the turnover in your accounts receivables? What about your inventory? Are you getting enough ROI on your marketing initiatives?
2. Ask for feedback. The next step in this process is to actively solicit feedback from several different sources in which you ask people how they feel about your business and what they suggest to improve it. This feedback can come from your employees, your customers, a consultant or mentor ( you can access a free mentor at SCORE, and MicroMentor), or another hired professional, such as a CPA or attorney. After collecting this feedback, you need to shift through it to pick out the common themes. If many different people are all offering the same criticism or suggestion for change, then that you should take it as a strong indication of where you should be putting your efforts.
3. Re-align your business. After you have determined where the problem areas in your business lie and have received some feedback on some possible ways to go about improving the situation, now comes the real work- you have to act on this information. You should develop a list of of priorities and tackle those areas first. In most cases, you should integrate changes slowly and focus on no more than three of them at a time.
4. Evaluate your progress. The last step in this process is an on-going one. Make sure that you are monitoring and evaluating any major change you have introduced into the way you do business. This will help you to stay on track and allow you to drop or change any initiative that isn’t paying off.
In short, with a lot of intensive care, often even the sickest business can be brought back to life.