How To Revitalize Your Small Business

Investopedia

Businesses can face downturns when sales decline or plateau. In such situations, it's generally clear that existing strategies haven't been successful, or at least not as successful as a business's owner might prefer. That means it's necessary to try something new.

Evaluate Your Business' Current Situation
Start by taking stock of the current situation. If business is dragging, look at the quiet time as an opportunity to dig deep into how the business operates at every level. Go over everything, down to the quality of the products or services you're providing. Little details, like how effectively the company uses the time provided by employees, can add up into a big picture with some clear indicators of what's not working.

In particular, it's crucial to pay attention to your business's marketing initiatives. Which ones are the most effective in terms of resulting in paying customers? If you can't immediately point to the best strategies you're employing, you may have a problem. Refocus the business's efforts on measurable marketing campaigns targeted very specifically at the right clientele. Survey your existing customers to see what you're doing right for them. Bite the bullet and contact past customers to see why they're no longer with you.

Pay for a Consultant's Expertise
It's possible that you'll need outside help to identify the problems within your company. A fresh look can mean spotting a problem that your team is too close to recognize. An outside expert may be more up to date on new technology, different marketing options and other factors that can add new life to a company. Doing additional research on your own can help, too, but both strategies may represent expenses that are hard to justify in a business facing problems. However, hiring a consultant and taking action on the new information are necessary, even if these costs are difficult to budget for.

Reevaluate Your Budget
Given the costs of turning around a company, it's tempting to create a better business budget and leap right into cutting recurring expenses like payroll. But it's crucial to consider the value of each expenditure before making a cut, particularly when dealing with human resources. Payroll cuts can have hidden costs, like the damage to employee morale. Plan just as carefully when cutting expenses as for the rest of your revitalization.

Make a Dramatic Change
Some businesses find that they need to take dramatic action to revitalize sales. There are times when the old company name doesn't make it clear to customers what you're selling and you have to rebrand. Perhaps you're marketing to a customer base that doesn't really need your product. Maybe you need to update your technology. In order to bring about a new level of success for your company, you have to be willing to consider any option that comes along. That means driving changes, even if the core team behind the company isn't comfortable with them. You can get advice and develop plans, but the effort isn't worth anything unless you implement real changes.

The Bottom Line
There's no universal reason for a business to have problems. Causes like economic downturns and failing to upgrade to newer technology are very different, but can have the same effects on a company's bottom line. In turn, that means that there aren't any universal solutions for revitalizing a small business. You'll need to take a long look at how your company got to this point and use that information to formulate a new plan. The earlier you can get started on revitalizing your business, the better. You'll have more resources to work with and less damage to repair. Keep your eyes open for potential problems to see if you need to take action, whether you've just finished turning your company around or you're trying to keep your business afloat .

More From Investopedia

Rates

View Comments (3)