Turn Your Business around before It’s Too Late

OlufisayoDecember 21, 20190936 views

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You’ve always wanted to run your own business. The idea of being your own boss, following your passion, connecting with your customers, and reaping the rewards of your risk and hard work has always appealed to you. You financed your business from your savings, friends, family, business loans and lines of credit, to get your dream off the ground.

But your enterprise hasn’t been off to an ideal start. You’re unable to pay bills on time, your payments are late, your employee retention rate is low, and you’re close to your financial limits. Your future cash flow projections are better, but your business is facing a funding gap until then. By taking some aggressive steps, you can turn your business around.

#1 Use an Alternative Funding Solution

You desperately need money but it’s difficult for businesses like yourself to secure funding from the major banks. They have complex applications, many limits, and slow processing times. Instead, turn to alternative business funding experts to quickly bridge your funding gap so that yourbusiness has an opportunity to realize its potential. Such lenders don’t require collateral and even help businesses with less than ideal credit.

You can get smaller loans from them to build your company’s credit score
You can use your personal credit if your company credit is too weak
You can leverage unpaid invoices for short-term loans
You can use a down payment to gain funding for your business with bad credit

#2 Analyze Where You’re Going Wrong

Your company must identify where it’s going wrong before it can change course. Consult an outside expert if you must. Once you’ve identified the problem then formulate a plan.

#3 Be Brutal

Forecast expenses and evaluate your business. Plan where you want your company to be. Compare your enterprise to others in the industry. Next, take out the scissors and trim the fat. Create a spreadsheet of your company’s costs and eliminate unneeded expenses. Lower your variable costs and be firm with fixed costs. Find better deals with suppliers and use cheaper alternatives.

Trim your workforce by letting go of unnecessary employees. Keep up company morale by doing so gracefully. Be clear with them and don’t let it be a surprise. Make sure that allyour actions are legal and have a witness during the termination process to avoid legal complications in the future.

Afterwards, have a company meeting with the employees you intend to keep, to reassure them and to maintain performance.

#4 Take Advantage of Technology

Modern technology can reduce your costs and help your business become more efficient. Use digital solutions such as cloud storage, customer relationship management software (CRM), teleconferencing, b2b integration, and more, to eliminate overheads and become more productive. Take advantage of modern software that allows you to manage invoicing, payroll, accounting, taxation. Always use free options when possible.

Use energy-efficient technology to reduce your energy bills. For example, LED lights use 75% less energy and last 25 times more than traditional incandescent bulbs. Similarly, use equipment with lower energy consumption at the office.

While managing a struggling business can feel overwhelming, you can change course with some impactful steps. Take the right decisions now to turn your business into a profitable and growing company.

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