From a very early stage in life we are taught that failure means the end but reflecting back at history, it can be appropriately said that failure is just a stepping stone for success. Sometimes before a business finally leaps for the positive slope on the progress-time graph it takes a steep negative slope. Most successful businesses today are the ones that pulled their enterprises out of there instead of giving up. We have compiled a few suggestions for you, that might give you an insight in pulling your business out of a cash crunch.
Table of Contents
Frequent SWOT Analysis
SWOT stands for Strength, Weaknesses, Opportunities and Threats. A good quality SWOT analysis will help you monitor the progress of your enterprise and predict its rise and fall. Such predictions might come handy in preparing beforehand for the losses and might save you from the panic attacks.
Value your customers
According to Gartner statistics, eighty percent of a company’s revenue comes from twenty percent of its customers. Know those twenty percent customers and keep them close. Try involving them in your business strategies and maintain your goodwill with them.
Invest in an Advisor or Mentor
One thing you can always learn from is the experiences of people who took similar paths as you have chosen. A good advisor would be a great asset not just in times of profits but more so in times of loss.
Consolidate Debt
Try to combine your debts into a low fee and low interest product. Try finding better deals while you are refinancing your current debt arrangements. It could save you some trouble if multiple debts having varying interest rates could be combined in order to have a relatively lower interest rate.
Rely on Government Grants
When opening up a small business or enterprise, look out for insurance policies and schemes that are meant to assist small-scale enterprises and young entrepreneurs. Backup is great when considered from the very start.
Recover Outstanding Debt
While borrowing or lending money, always make sure you have a condition of sale agreement in writing that outlines your terms and conditions, very clearly. In times of occurring losses, chase up as many outstanding payments as you can. You can ever outsource your debt collection with a reputable debt collection agency.
Sell Assets
If you have some unwanted assets, which do not add up in your profit equation, you could sell them and reduce your storage costs. To help you spread the cost over a longer time period, you could also consider leasing your assets, until you fully recover from the losses.
New Marketing Techniques
Times of traditional business settings are long gone. In this era of social media and globalization, you might just be a few clicks away from recovering your losses and elevate your enterprise. Make right and extensive use of the World Wide Web and try to reach potential customers throughout the globe. You can even offer additional payment methods online, which will open for you different markets.
Good businesses thrive on risks. But it is highly inadvisable to take those risks without precautions. Moreover, it is important to not give up without trying recovering your enterprise from a negative slope. Personal assets, help from friends and family should be one’s first preference once all the precautions are utilized exhaustively. It might take a whole of of perseverance and patience but running your own enterprise despite all the losses that one might face, is one of the most satisfying jobs.
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