If your business is having some troubles but hasn't reached the point of declaring bankruptcy, there may be some strategic moves that you can take to turn the business around. It requires a critical eye on all parts of your business spending and revenue. Here are some questions that you can ask to determine how to save the business.
What Are Your Core Business Needs?
The first thing to do is think about what business activities are essential right now. Which ones are necessary to continued operations? Anything else should be put on hold as much as possible for now. This will help you to stop losing cash while you try to redirect your spending towards other activities.
How Can You Bring in More Revenue?
Any money that you can save on non-essential business activities should be put towards tasks that you know are directly bringing in revenue. That includes the products you sell, anything necessary to provide your service, employee incomes, and essential marketing.
Marketing spending is one to review carefully. It may be how revenue comes into your business, but it's also often an area where you have a lot of spending that's not really working for you. Be sure to analyze which marketing streams have actually been bringing in business. If a marketing channel hasn't worked for you yet, you might not want to discount it completely, but it's not a place to focus income when you're unsure of the fate of the business.
What Went Wrong?
The two steps above are designed to stop money from flowing out and get money to flow back in. After those immediate steps are taken care of, you can take a step back and look more at the big picture. One to consider with your accountant is whether your budget isn't balanced; if you are spending a lot on overhead when you're not bringing in enough revenue, this can lead to inevitable failure.
The steps above are a great way to start turning a business around, but you might want some help to pull them off. A great accountant or bookkeeper will be necessary to provide you with accurate financial data to base your decisions on. Management or accounting consultants can also help with the strategic direction of the business at this critical point. And in some cases, you may decide that bankruptcy is truly the best case; your financial advisor or lawyer will help you decide.Share