What Not to Do If Your Business Is Failing

What Not to Do If Your Business Is Failing
  • Opening Intro -

    So, your business is on the brink, and it's time to make some tough decisions about its future.

    90 percent of startups fail: this is a fact, yet it's hard to swallow when it's your own business on the line.

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You know the figures, you understood the risks when you launched your startup, and still the pain and disappointment of putting your blood, sweat, and tears into your enterprise, only for it to fail, is a tough pill to swallow. So what do you do when your company is failing? Take control of your business by learning what not to do in a financial crisis.

Don’t Use Personal Credit

It’s tempting to bail out your business or pay off debts with your personal credit, but it’s far better at this stage of the game to keep your personal money separate. If the worst happens and your business fails, you need to know that your house/car/credit score is still intact, and that your personal life won’t be affected. If you must use credit to get your company out of a financial black hole, use business credit: if you don’t have any, contact companies like North Shore Advisory and visit www.northshoreadvisory.com for practical advice on whether to establish business credit.

Don’t Panic

Having a business on the brink is a scary time, especially if you have personal assets tied up with your company. However, if panic blinds you, then you won’t be thinking clearly, so try to put aside your emotions and stick to the facts. It may be easier said than done, but you need to be objective about getting your business back on track, otherwise your feelings will get the better of you.

Don’t Be Afraid to Make Staff Cuts

When you find yourself at the helm of a sinking ship, it’s tempting to sacrifice yourself to the cause and go down along with your team. While caring for your employees is essential for business, you can’t let your personal feelings cloud your business judgment. Sadly, if you can’t pay your staff without your numbers falling further into the red, you have to let them go. Be honest, upfront, and know that if you manage to keep your business afloat, you can always hire them back.

Don’t Forget Your Product Line

Now’s the time to take a cold, hard look at your product line and get rid of products or services you just aren’t selling. Trim the fat away from your business and focus on areas where you know you can bring in money, even if it’s not enough to get you in the clear. Pooling your resources into products that hold your business back is a waste of time. Instead, re-grow your enterprise by listening to what your customer’s want and focusing on areas of strength. 

Don’t Let Failure Hold You Back

It has been said that success is 90 percent failure, so don’t let your first, second, or third failed business hold you back from starting another one. You will obviously have to review your strategy and learn from your mistakes, but if every business leader gave up at the first sign of trouble, we wouldn’t have Henry Ford, Richard Branson, or Walt Disney. Sometimes, you just have to accept that it didn’t work out and keep trying until you get it right. 

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