Written by Healther Legg
Running a business is tough. So tough that a number of businesses flail, never revive and are soon forgotten. But it doesn’t always have to be this dreary.
If you see trouble heading your way as a business owner, you need to work to turn it around, but you can do it. If you don’t take a proactive stance, before you know it, your businesses may drown. But the earlier you take action, the better chances to save your business.
Plenty of businesses and entrepreneurs from big names to the littles, have seen themselves failing and have caught it in time to save themselves, from Martha Stewart to Susan Brown (creator of the Boppy pillow) to Barry Schoenborn (technical writer).
Here are their quick stories as reported in Entrepreneur with some good tips that may work for your own company if it’s in trouble >>>
After Stewart was sent to prison, stock in her company fell 22 percent along with her credibility. But when she was released, she went back to work in full force and not only started a new daytime show, but also formed new partnerships to help her revenue climb back on.
The lesson learned here is not about starting a talk show, not many of us could pull that off, but the partnerships of reputable companies can make a big difference to a troubled company.
Look around and see who you may be able to convince to come on board with you, and what you can do for them.
Though you may only be aware of the Boppy pillow if you are a breastfeeding mom, it’s a pretty hot item for those who need it.
In 1990, Brown was selling her pillow in a number of stores, but her cash was running out and she couldn’t get a bank loan. She took charge by using a factoring agency where she received faster revenue. Her employees also agreed to take substantial pay cuts. Their loyalty paid off as now the Boppy Co is a multi-million dollar businesses generating $40 million annually.
This lesson is about employee loyalty.
Maybe you’ll have to let your employees know times are tough. You want them to stay, but you all may need to cut back. If they choose to stay on, hopefully your company will soon be thriving and you can up their pay once again. If they must unfortunately leave, when you hire new people, start them at a lower, more practical rate.
Schoenburn had a technical writing business which got hit hard by the recession, and he suddenly had tens of thousands dollars in debt.
His survival move was, believe it or not, hiring someone new. This person took care of the clerical side of the business, including accounting, so Schoenburn could focus on writing. By spending some money, he was able to catch up and do what he did best. As of 2006, he had a thriving, debt-free company.
To survive, sometimes you have to do the unthinkable and spend more money.
But if all you are doing is tasks besides what your business is truly about, there’s no way you can do what you set out to do and actually make any money. Risks sometimes are the smart thing.
Again, owning a business takes guts and risks and maybe some nontraditional moves.
But if you see your business, your baby, sliding down the path of failure, do what you need to do to revive it before you lose it all.
About the Author
Heather Legg is a writer who covers topics related to businesses, fun and frugal family living, and Steve Wynn.