Most startup business ventures fail in the first three to
four years? Success or failure depends on many factors and signs that shows a
failing business. Identifiable signs are stagnation, poor cash flow and
mounting debts.
Cutting down expenses is only a temporary measure however
more concrete sets should be taken. To turn around a dying business you need to
implement certain steps. Here is a guide on steps to jump-start a dying
business.
Sell
a Different Product
The simple solution to jump-start a failing business might
be the product. It is possible to overvalue a product or market potential.
It is easier to change the product to accommodate fast
changing trends. Analyze the products that sell or appeals to customers. The
value of the product is immaterial so long as you make regular sales.
Appropriate
Pricing
A serious business killer is appropriate pricing of goods
or service. Offering high quality merchandise at premium rate to middle or low
class neighborhood will fail. They would rather buy cheaper products of the
same item.
Customer
Demand
Focus more on customer demand and moving to a completely
different vertical. A business owner on my street started out selling bags and
footwear. She added small snacks and biscuits to attract school children.
Then pivoted to selling hot meals for workers in the
area. Now the bag/shoe and snack business are discarded for the huge profit in
hot meals.
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Re-brand
A good strategy is to revamp and re-brand the business.
Re-branding will inject new life to an old brand. Re-branding positions a
business properly if a complete overhaul is executed.
A falling business can repackage the product, name and
company logo. The main focus of any re-branding is marketing. How to present an
old product in a new exciting way.
Niche
An effective business strategy is to focus on a niche.
Focusing on a niche leads to specialization and domination.
If you have too many products it can get confusing and more
challenging. It is better to be known for one thing than unknown for different
products. Specializing equates to customer trust in your knowledge of the
product.
Develop
a Marketing Strategy
Create a marketing plan and develop a marketing strategy.
You would be surprised that many companies fail to use all the marketing
opportunities available to them.
A good marketing plan re-invigorate, re-invents and
leverage on technology. Marketing strategies include newspapers, magazines,
radio, and television.
We have social media marketing, paid posts, email
marketing, blogging, in-bound marketing.
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Take
Risks
Owning a business comes with some element of risk. Taking
bold risk during time of crisis could be your best option. It is better to try
new things than being conservative.
If you own a brick and mortar shop why not open an online
store. If you are into manufacturing why not sell branded products on social
media platforms.
Without risk there would be no gain. The difficulty of
taking more risk in a failing business involves new addition of funds and
marketing.
Sell
the Business
If you have tried re-branding, pivoted new products
without results then it is to sell. So long as the business is moderately
profitable there is a buyers. Some entrepreneurs specialize in buying failed
businesses and turning them around.
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