HOW TO REVIVE ANY DYING BUSINESS


This article was originally titled 7 Turnaround Strategies to Revive a Dying Business” by Tito Philips Jnr

Read along, benefit and contribute via the comment section.

Sad as it may sound, the health of a business is not guaranteed forever.  Virtually all entrepreneurs will face the daunting task of managing the recovery of a failing business. Every business during the course of its existence will experience a near death experience.

This is a period characterized by harsh business conditions; low sales, low morale, low cash, low market share, and low innovation. Some recover from this and bounce back stronger than before, and some don’t.

There are many factors responsible for this near death experience; those that are self-inflicted like; a major project failure, incompetent management or poor financial control is generally termed internal forces while those that are not self-inflicted like; government intervention, economic recessions, the presence of low-cost competitors, or natural disasters are termed external forces.

The continuous survival and success of a business greatly depends on managing these forces internally and externally. Neglecting them can spell doom for any business regardless of size!

Let us now go through the strategies on how to revive a dying business.

Strategy 1:            Re-Evaluate: situation
To treat an ailment, we need to diagnose the patient. The first place to start if your business is dying or failing is to look within the company. This is known as self-evaluation or self-assessment. You have to know what the situation is and what the problem is. When you already know the circumstances, you can now take appropriate actions. When looking within, focus on the following key areas;
§  Strategy
Does the business have a direction? Does the business know why it exists? What problems it solves and for whom? Is the business focused on the right things?
§  People
Are the right people running the company? Are the right people in the right places? Are employees committed to organizational success? Are employees properly motivated to share in the ongoing success of the firm? Are commission plans driving sales persons to focus on gross revenues or gross profits? Are difficult policies, internal strife or the behaviours of specific individuals driving down the collective spirit of the organization? Are there bad eggs in your company that are contaminating the whole organization?
§  Customers
Are customers satisfied? Do they know, like and trust your brand? Is the business focused on profitable customers versus unprofitable and difficult clients? Are you targeting the right customers?
§  Product
Are you offering innovative products/services? Can the business better utilize technology to create better products, reduce costs and improve competitive advantages?
§  Process
Are systems in place to get work done efficiently? Are things being done in the right way? Are policies facilitating work or hindering them? Is the business structured for high performance?
§  Finance
Are you competitive and profitable? Are cash flows sufficient to sustain ongoing commitments and operations? Is this business largely indebted?

Re-evaluation is the most critical turnaround strategy; without it all other things are just frantic moves that will yield little results. Before you begin to act, know why, what and how affected your business is. Only through re-evaluation can discover all these.
The suggested articles below will help you get started.

Strategy 2:           Re-Define: strategy
After re-evaluation comes re-definition. Re-evaluation reveals what’s wrong with your business and re-definition is putting the business back on track. This is where you go back to the drawing board to set the overall direction for the company. This is where you create the turnaround game-plan. Failing in business is often as a result of not having a clear direction or having derailed from the set path. So you need to revisit the foundation of your business by touching the following key areas;
§  Purpose:
 “Why do we exist as a business?”
“What need or needs are being met by this business?”
§  Vision:
 “What do we want to achieve using this business as a tool?”
“How far do we want to go in pursuit of our purpose as a business?”
§  Mission:
 “How do we intend to succeed in this business?”
“How and what must we primarily focus on as a business to be the No.1 choice of our target customers?”
§  Values:
 “What principles, standards and tenets must we hold to be true and never compromise as a business?”
 “How must we collectively think and behave as a business in order to fulfill our purpose, achieve our vision and execute our mission?”  
§  Brand:
“Who are we as a business to the general public?”
“What is our promise to those we intend to serve?”
“How do we want to be perceived by our target customers?”
“What do we want to be remembered, recognized or respected for in the marketplace?”

Strategy 3:            Re-Employ: people
Hardly can you turnaround a dying business without talking about the people behind it. A business cannot function by itself, people make it function. People make or break your business. This is why you need to re-employ. To resurrect a dying business, get the right people on board and get the wrong people off, period!


Over to you
What new thing or things did you learn from reading this unusual article?
Have your business ever experienced a near death situation and how did you recover from it? Was it in the same fashion as these strategies? Please, share with all let us learn from you. Leave your extra strategies in the comment section. Thanks.



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