Finding ways to turn your business around when things are headed towards the red takes no small amount of skill and determination. Upwards of 50 percent of small businesses don’t survive their first year. And even fewer make it past the five or ten year marks.
While there are plenty of qualities you might want in order to turn your business around, there are a few skills you most certainly will need: organization, follow-through, and communication.
Organizing for a Change
At the first sign that you company might be in trouble you should begin making a plan of action for what will need to happen to get back on track. Start by trying to understand where exactly your company went wrong. The necessary changes will not happen if you do not have a grasp on the root of the problem.
Next, make sure you have knowledge of your small business’s finances and tax requirements. Tax law is so extensive it isn’t surprising that a number of business owners grapple with it. From there start assessing work flows and company efficiency and organize your ideas into a clear plan that can be implemented as a strategy for turning your struggling business around.
Implementing New Ideas
Once you have your plan written out with achievable steps towards success it’s time to start implementing it. You will have to be the leader that gets people through a difficult change, which means empathizing with employees as they adjust and remaining confident and steady throughout the process. Think of yourself as a coach and your employees as your team going into a difficult game, they will need your encouragement and belief to succeed.
Some of the changes that need to take place may involve changes in staffing. Removing employees that are dragging your company down can be difficult, but it important to remember that your company will not likely succeed without these necessary changes. Alternatively, if you are looking to hire new employees, do so with a critical eye towards the qualities you are looking for and the culture you would like to build within your company.
Providing Clear Instruction
Finally, as all of these changes are taking place, it is imperative to communicate your direction for the company as clearly as you possibly can. During big company changes there is a lot of room for gossip and false ideas to spread and cause panic among employees. You do not want this to happen as it can lead to serious distrust between management staff and employees that can cause equally damaging issues further down the road.
It will be important to maintain an open door policy, where all questions and concerns are welcome. Manage your relationship with your employees by listening to what they have to say. Who knows? Some of their ideas may be just the ones that are right for your company to pull itself out of the red.
Working towards turning your business around is not going to be an easy task. In fact it may be one of the more difficult things you will ever do as a company owner. As you begin assess the state of your business make sure to come up with a solid plan of action, help employees get through its implementation, and communicate the changes you would like to see as clearly and honestly as you possibly can.