Most business owners make the mistake of assuming that their business is going to be a success. This is foolish, particularly when over 90 percent of new startups crash and burn in their first year. You would be right in thinking that this doesn’t leave much wiggle room for mistakes. You have to correct issues immediately, or they will bring down your entire business model. To do this, of course, you need to know the signs that your business in trouble, so let’s look at a few.
Strictly speaking, zero profits isn’t always a death toll for a company, but it does depend on the situation. Usually, if you start a business that is making no profits, you knew it was going to happen. You planned for it, and you’re willing to ride out that difficult period to generate loyal customers through low prices. This has led to a number of success stories including that of Diapers.com. They started off below breaking even and yet ultimately managed to sell their business to Amazon for millions.
That’s notably different from starting a business in the hope of making substantial profits and finding out you can’t even break even. So, if you’re gaining nothing in the first year and you didn’t plan for it, your business is definitely in trouble. We’ll talk about how to correct this situation a little further down.
You might also find that there’s bad word of mouth surrounding your business. At first, it might seem as though bad reviews aren’t hitting your business that hard. Instead, it might feel like your company is weathering the storm. But be careful because there are plenty of companies that have been taken out by bad reviews.
Just look at Technorati.com for an example of a business that was crippled by bad reviews. After rebranding the company terminated thousands of jobs leading to terrible reviews and feedback on Glass Door. Immediately the business nosedived out of the market. This shows that it’s not just negative customer reviews that can hurt your company. A bad review by a previous employee can also cause this type of effect.
Low Efficiency And Productivity
Issues with productivity and efficiency are certainly going to cause problems for your company. If your business isn’t efficient, it won’t just be affecting costs. It will be impacting the quality of service you can provide to customers, and you definitely don’t want that.
Issues with efficiency can be caused by a number of factors from terrible staff and outdated tech to a serious oversight in your business model.
So, now you know some of the signs that your business is about to crash, let’s examine the repair options.
This Won’t Hurt A Bit
An injection of capital won’t hurt your company, but it will definitely cost you. However, it might be exactly what you need to fix an issue with efficiency in your company. Now, you might think that if your business is already too expensive, it makes no sense to spend money. On the contrary, spending money could fix the issue.
Let’s say that you have been using tech that’s out of date and takes minutes to load. Not to mention the constant crashes. In a situation like this, you can invest in new tech and immediately fix the problem. If you don’t have the money in your funds to pay for this, you can get a cash advance. When applying for a cash advance make sure you understand all of the terms and conditions. If you are only borrowing thousand, you’ll be able to get the new tech and protect yourself from a heavy debt.
New tech isn’t the only area where spending money could help matters improve. For instance, you could inject capital into your website and help boost traffic levels online. That will almost immediately lead to higher levels of profits, and it could lead to you being able to keep your company afloat.
Let’s say you’ve decided to hire twenty people to work on marketing for your business. That’s always going to be an expensive commitment, and it might be leaving other areas of your business bare. For instance, you may have very few staff for customer support. Don’t forget 90 percent of customers say buying decisions are influenced by online reviews. So, you definitely want to work hard to get those scores up.
More resources put into customer support can help. By allocating more staff there, you’ll be able to reduce response times and deliver a higher level of service. That is sure to impact customer reviews because, at the very least, problems will be dealt with efficiently.
If you don’t have enough resources to fill every gap in your business, you can outsource. By outsourcing, you can get the same level of service for a fraction of the cost. You still get a professional level of support your company. But by cutting costs in one area, you’ll have more to spend in another.
It’s possible that your business is failing because you’re not getting enough attention on the market. If your business looks boring or outdated, you won’t get the customer retention levels you need. Luckily, there is a way to fix that problem.
You just need a fresh marketing or promotional ploy, and this could be anything. For instance, you could offer a discount on one of your products to existing customers. You can do this through a mailing list. With a mailing list, you’ll be able to target customers directly, but that’s not all. You can make it seem like an exclusive offer which means only loyal customers can access it. This makes consumers feel appreciated, part of a two-way relationship with your company and more likely to buy.
As you can see then, there are lots of issues that point to a failure in your business. But there are also simple fixes, and perhaps the best fix of all is a pre-emptive strike. Before efficiency levels start affecting your company, you should assess your model. Find out where time or money is being wasted and plug the hole. Do this, and your business will never be in the situation where a failure is imminent.