Down but not out: Figuring out why your small business is struggling

By Henry Brown

Getting to the bottom of your struggling business can feel like you’re digging your own grave. The things that you’ve ignored over time, you’ve now got to confront. And while the figures speak for themselves and the employee turnover is particularly high at the moment, we might not be able to get a real handle on why our business is struggling. Let’s provide a few logical explanations as to why this could very well be the case.

No reaction to changes in the market or trends

We can make a big mistake and assume that because something has worked in the past, it will continue to work in the future. There are so many different changes in the markets, as well as new competition coming up from underneath, but there’s also a lot to contend with in terms of the digital coalface. Technology changes so rapidly that it can be hard to keep up. What’s more, looking after your business in a technical sense can be difficult if you operate on a shoestring budget or only have a certain number of staff members. It’s important to make the most of outside help, like Frontline, LLC, and ensure that you are making the most of changes in the market, as well as adapting to what is out there, not just so you are ahead of the curve, but your business can stand a chance of surviving.

Inadequate financial planning

If you have an expanding business, you need the money to match it. But this is not enough when it comes to the grand scheme of things. We can make a major mistake in calculating how much we need. It’s always essential, even if you’re on a shoestring budget, to have a proper accountant or specialist on board who can guide you in the right direction.

Not understanding the market and the customer

This is something that needs to be done at the outset. But after a while, you may find that you are capturing a certain demographic better. Understanding your customer’s journey over time is crucial, so you can make the needed changes in your product or service offering. If you don’t understand the market or the type of person that will buy your products a year from now and preparing to make appropriate changes in your branding, marketing or other factors, are you truly being competitive? Market research is a fantastic thing, but it’s important to learn how to evolve with the product.

Inability to handle fast growth

A struggling business isn’t necessarily about the negative aspects. Your business could very well be growing so fast that you’re not able to control it. Increased clients and customers look great, but slow and steady will win the race. You have to remember that, despite there being more people interested in your product and services, if you don’t have the means to cope with them, you could quickly lose these customers, and bad word of mouth begins because you can’t sustain the services.
A struggling business is a heartbreaking thing to watch. But you shouldn’t feel like you are going downhill. You can always turn around a struggling company.

1 comment

Leave a Reply

The Self-Employment Survival Guide can help you succeed. Learn all about it here.

Self-Employment Survival Guide book cover