SAVE YOUR BUSINESS

Times can be really hard when your company is struggling. Romil Timbadia points out some important tips to keep in mind when business looks bleak.

YOU ARE NOT ALONE

STAY VISIBLE

Even if sales are down and your budget has shrunk, make an effort to continue your business in the same way. In other words, try and do more with less. Here are some ideas:

Customer Focus The customer is your saviour. Talk to them and get feedback. Ask them what they want and how they like to receive the product or service. Next, implement actions and communications accordingly that meet these needs.     Email An email is a fast-growing way to market your wares. Almost everybody has an email ID and checks emails regularly. Avoid making it too 'junky' and learn from other's mistakes. Email is a lower cost alternative to direct mail.     Innovate Try an innovative step to publicise your company but make sure it's not tacky. A website in good loops with popular search engines is a good start. Collaborate with newspapers and magazines to advertise in a different, but effective manner.     Outsiders Use outside resources wisely. Carefully examine and evaluate the value of outsiders, i.e. your accountant, ad agency, designer, packager, and see to it that they are performing rightly. Make sure they are given the right direction.

Hang on mate! We know your business is slowly dying; company sales are in the dump and staff morale is lower than a caterpillar's underbelly. We know you are exhausted and feel that all your efforts are being wasted. What's more is that you have a heap of bills lying on your desk.

Wait! Maybe there is a way out. There must be. There have been many people who, in the past, have faced situations like the one you are in. And look at them today. Most of them are successful entrepreneurs. Some of them are on their way there. Did they give up? Don't count on it.

It's one thing to run a company when things are going well. It takes a totally different mindset when things aren't as well. So sit down. Gather your thoughts and reanalyse the situation. Don't pull the plug just yet. Before you lose all hope, rethink and strive for a strategy to save your dying business.

AMEND, ALTER, ADJUST

Daniel Boorstin, the Pulitzer Prizewinning author and historian once remarked that, 'the most promising words ever written on the maps of human knowledge are terra incognita, or unknown territory.' And that is exactly where businesses have to head for survival.

The phenomenon of constant change at a global level is making businesses restructure their workforce, redraw organisational charts, rethink the direction of growth areas and redefine the meaning of work itself.

Let's take an example. A security company that sells multi-ton vaults cannot function only on that for revenue nowadays. At present, the demand is hot for CCTV cameras, burglar alarms, motion detectors etc. So, the company would have to alter its objectives and improvise and innovate if it wanted to continue in that business for long. Adds David Horgan, chief executive of Petrel Resources, "picture yourself a farmer. Look to the competitive future rather than protected past. Get out of beet growing and into eco-tourism and innovative products like new cheeses or biotic foods. Just do it, and keep trying things until something works." While many people associate business evolution with technology, it is not accurate. Technology only helps to achieve, quickly and more efficiently, the final prerequisite: to meet the customer's needs.

PENNY WISE

A lot of business owners struggle with the financials of their company. Even with elite accountants and financial experts, it is vital that every entrepreneur know basic accounting and simple, financial decision-making. The usage of numbers not only lets you keep track how much you are making, but also acts as an input to evaluate possible directions you might take your business.

Burt Rutan, the first entrepreneur to launch human beings into space, and founder and CEO of Scaled Composites provides some insight for struggling businesses: "I would question basic goals of the company and find those that are worth saving. In general, if it is worth saving, funds can be found to do so."

Follow these simple recommendations for a quick way to reorganise your budgets for the shortterm:

• Estimate your cash needs for the next quarter to set your spending priorities
  
  
• Identify ways to reduce expenses
  
  
• Determine who your crucial sellers are. Set aside the ones you can't operate without

On a similar note, a few classes in accounting or some self-study is really essential for all entrepreneurs, especially small business owners, who wish to attain a reasonably high level of success. In a struggling business, financials will clue you in on whether or not the business has the capacity to recover, and then move up.

THE TURNAROUND

Business owners and entrepreneurs don't like to admit that they are in need of help. Even when an owner does take that bold step and talks to a turnaround expert, he/she is usually too worried and troubled to discuss the efforts involved.

Professional help may not be the ideal choice considering the condition of the finances. But it may be possible to collaborate with some who are willing to work on a commission or even an installment basis. Remember that it may just be an option if things get really out of hand.

FACE REALITY

While overreacting cannot be ruled out in such situations, also keep in mind not to under-react. Every business owner has confidence in his/her business, but there are times when he/she must face the reality of the situation.

Small businesses that struggle to survive fail to do enough to keep things together. A common mistake here is acting too slowly or opting for superficial changes that have little or no real outcome. Don't get caught in a sticky situation.