If you are constantly facing failure in business, now is the time to do some introspection first. You have to first understand where exactly you went wrong.
When you start a business, you have high hopes for it, but when you fail, it is natural to be disappointed. Sometimes you don’t understand why you are not getting success despite spending more money than you actually need. So let us tell you today the things, by knowing which you can easily turn your failure into success.
Introspection
If you are constantly facing defeat, now is the time to do some introspection first. You have to first understand where exactly you went wrong. Unless you understand this, you will face failure. It is possible that the idea you are working with may have many errors or you may not be able to implement your idea properly. Sometimes when a good idea is not implemented properly, it doesn’t do much good. Therefore, it is very important for you to first be honest and introspect yourself so that you realize your mistakes and then start working on them immediately.
No Shortcuts
One thing you should understand very well is that there is no shortcut to success. Some people resort to shortcuts to earn name and money quickly. These shortcuts may bring you success for a while, but in the long run you will not be able to sustain your business. So, whoever you establish a relationship with in your business, give them good and timely work so that you are never short of orders. Your business relationships should be such that they last for years, only then will you be able to fully establish your business.
Positive Thinking
Even if you are facing defeat in life, don’t let negative thoughts overwhelm you even by mistake. You have to understand that success and failure are two sides of the same coin. If you are facing defeat today, one day you will reach the pinnacle of success with your hard work and optimism. Simply, for this you have to complete your work with hard work, patience and honesty. Fear of failure is the biggest enemy of your success. If you don’t overcome this fear, it will be very difficult for you to achieve success.
Better Team
One person is never responsible for the success or failure of any business. It’s a teamwork. So, to make your business successful, it is very important that you work with a good team. Even if you are the boss in the business, your attitude towards your team should be such that your team is fully satisfied with their work.
How To Save a Struggling Business in Easy Way (STEP by STEP Guidance from a renowned, Finance and Business Consultant/ Expert – Harry Bhagria
If you have a failure in business, how can you panic?
This is the solution………….
When things get tough, the first thing many business owners do to try to save their business is cut costs, but that only slows down the inevitable. All you have to do is start fast and breathe new life into a dying business. Learn how to turn your business around in this article.
A business recession is the beginning, not the end.
It gives you a chance to learn, start over, and rebuild.
The first thing many business owners do to try to save their business is cut costs, but that only slows down the inevitable. All you have to do is start fast and breathe new life into a dying business.
This article will help give your failing business the jolt of energy it needs to get back on the road to success STEP wise STEP as follows-
“CB Insights” Found the Top 4 Reasons Startups Fail-
Ran out of money (38%)
No market need (35%)
Beaten by the competition (20%)
Flawed business model (19%)
How to save a failing business in 10 STEPS are as follows-
Adjust Your Mindset
There is no secret to success. But there are many factors that make you and your business successful. Sure, hard work and perseverance.
But there are other ways to do it than working 24/7. Developing a positive growth mindset can help you stay on the path to success.
It may sound a bit “woo woo” or suspiciously mystical and unscientific. Yet neuroscientific research has shown that our actions are driven by intentions, incentives, or intrinsic values.
A growth mindset is defined by the belief that your intelligence can be changed and improved. Individuals with a growth mindset view failures as part of the learning process and “bounce back” more motivated.
Develop a Growth Mindset-
Learn from your mistakes. Your business will have a list of failures. I’ve built three businesses from the bottom up and the journey has never been easy. Every loss becomes a win. So if you feel like a failure, stop dwelling on it. Look at what happened in your business and figure out what you will do differently in the future.
Be flexible. Chances are that nothing will go according to plan. Being adaptable and able to adapt will help you overcome many business obstacles in your path.
Motivate yourself. Make time for yourself. It’s easy to push yourself too hard when your business is going through a bad phase. Endless work will frustrate you and make you want to quit.
It’s true that hard work is important, but it’s even more important to stay strong and happy to achieve your goals. Use the tips above to get a healthy, balanced mind to get through the tough times.
- Set Goals
Now that your mind is in a good place, it’s time to work on turning that business around. Setting goals helps you focus and maintain momentum. Goals help you reach a specific outcome when you feel like everything is falling apart.
Goal setting is associated with higher motivation, self-esteem, and confidence. Research has also established a strong correlation between goal-setting and success.
Start small. Don’t go crazy setting huge goals, because you’ll get frustrated if you don’t achieve them. Set small goals often and reward yourself when you accomplish them. Create a series of mini-goals that lead to a larger goal.
For example, let’s say your big goal is to get 200 subscribers for your email marketing list. Your mini-goal list might look something like this-
- Sign up for free email marketing software
- Create a landing page for email list signups
- Create an email campaign
- Promote the email list on the website and social media
Find Out Why Customers are Leaving
It’s common for customers to shop with other businesses. But if you are getting any negative feedback from your customers then you need to find out why this is happaning.
Find out why customers are leaving your business. This could be for a variety of reasons that you’re unaware of, such as-
- A poor customer service experience
- Your product failed to meet expectations
- You haven’t proven your worth
- Your sales strategy was too aggressive
Establish a feedback system with existing customers. You can use apps like Userloop or Fuzzy Survey to gather feedback and understand what customers really want. This data can help you to create a better products/ services and marketing strategies that increase sales and loyalty.
- Understand Your Target Audience
The target audience is a group of people to whom you aim marketing and advertising efforts.
Do you know who yours is?
Identifying your target market is important because it helps you find new customers easily and bring more qualified buyers to your website, resulting in more sales.
Case Study of SUGAR (cosmetics brand) for Indian Market-
It took cosmetics brand SUGAR three years to really reach its target audience. “When we were running our e-commerce business between 2012 and 2015, we realised there were a lot of millennial women who wanted the perfect nude lipstick or couldn’t find the perfect red lipstick.. there were so many shades that were perfect for Caucasian skin, but wouldn’t work on darker Indian skin tones,” says founder Vineeta Singh in a Shopify Masters podcast episode. From there, the brand identified that its buyers are-
Indian women aged 20 to 27
Live in metropolitan areas
Use digital content a lot
Are inspired by global trends
For those who want an Indianisation of trends
This led SUGAR to launch its first best-selling product: liquid lipsticks. These lipsticks are extremely long-lasting and perfectly suited for the brand’s target audience with India’s humid and hot climate.
SUGAR has grown from an e-commerce store to over 10,000 retail touchpoints, and has become a disruptor in the industry by raising over $21 million in Series C funding.
Finding Your Ideal Customer: Find the right customers faster by reading how to define and reach your target audience.
- Do a SWOT Analysis
If you’re a struggling small business owner, now’s the time to take a step back and look at things from a broader perspective. This is where a SWOT analysis (strengths, weaknesses, opportunities and threats) comes into play.
A SWOT analysis forces you to look at your business from different perspectives and provides insight into how you will perform in the future. If you write/create a well-developed business plan then a SWOT analysis will be part of it.
Strengths and weaknesses are internal factors, or something you can control. Examples include goodwill, partnerships, intellectual property and employees. Opportunities and threats are usually outside of your control, such as competitors, the economy, market size, trends and supplier issues.
SWOT Analysis
A SWOT analysis will help you get back on your right track. It helps you identify problems, work on changes and improvements and make the right decisions to help you build a successful business.
- Keep a Close Eye on Your Finances
Many finance-related issues can arise even for the most successful business owners. Insufficient cash flow, inaccurate reconciliation reports, high external liabilities, debt—these are just some of the issues you may face.
If money seems to be your problem, you need to look at your expenses and outgoing cash flow. You may want to track finances weekly v/s month wise to stay on top of everything. Catching financial issues early can help minimize the impact and keep your company profitable.
“I think my biggest mistake was that I did not paying attention to my finances. I learned a lot. I realized I wanted to fight for the business. I wasn’t going to give up. Ultimately, it made me a better business person. Now I’m obsessed with my finances and I’ll never ignore them again.”
— Alexa C.
Common Financial Challenges Include-
Cash flow issues
No prepared budget
Unexpected expenses
Too much debt
Poor tax compliance
Combining personal and business finances
Monitoring reporting
To keep your books under control, use the following articles as a guide. They will help you solve the accounting problem and set you up for a more profitable business.
- Get Funding if You Need It
Working capital is a problem for businesses of all sizes, but it can be detrimental to small companies with limited resources. Having cash to pay your bills and eat lunch is great, but a lack of capital prevents you from hiring, replenishing stock, creating marketing campaigns and developing new products for the market.
To overcome these obstacles, you’ll want to establish a budget for operations, then research and secure financing options before you need it.
“US Capital Loans” are one way to get quick and easy access to business loans. There’s no lengthy application or credit check. You can receive funds within days of accepting an offer. Plus, you can reinvest the payments you receive from the sale into your business.
You can then use the funds for a number of tasks, including-
- Hire new employees
- Bring on an expert consultant
- Stock up for seasonal sales
- Buy bulk items at a discount
- Order new materials
- Fuel marketing campaigns
- Where to manage your money
- Pivot and Change Direction
Pivoting sounds a lot simpler than it actually is and can mean a lot of different things for different businesses. For some, it might mean changing or review your business model.
For others, it might mean moving into a completely different vertical or changing your target customer. You might have thought your product would sell well with acoustic guitar players, but in reality, it might sell better with piano players.
You might need to sell a completely different product. This sometimes happens because business owners haven’t properly validated their business ideas or products before launching. You need to closely analyze what’s working and what’s not, and consider making major changes.
- Invest in Marketing
At this point you’ve got the foundation in place to transform your business. You know your audience, you have cash in the bank, and you’re ready to spread the word. To attract the customers, you’ll need to implement effective and workable marketing strategies that attract, engage and retain the customer.
You can gain a lot of awareness on a small budget using social media tactics like,
YouTube Marketing
TikTok Marketing
Instagram Marketing
Facebook Ads
Henry Chen, a serial entrepreneur and business coach, highly recommends leveraging video marketing to promote your business online: “Create consistent, evergreen content. Specifically, YouTube videos that are value-driven and discoverable.
He adds, “Focus on solving one to two simple but common and important problems in each video. People are more likely to do business with you after seeing the social proof and free value you provide. By being evergreen, your videos will serve you for months and years to come.”
- Take Action
When you know your business is on its last stage, you need to be proactive. Don’t sit back and wait for things to happen before taking action. Take actions that are not only preventative (before things get worse) but also address obvious problems.
There is no better feeling for an entrepreneur than when he/she (business owner) is able to turn something around for the better. Every entrepreneur faces challenges, and short-term business failure is just one of many challenges.
Even if your business fails despite all your efforts, take it as a learning experience. Many entrepreneurs before you have failed before their most successful venture. You only need to be right once.
==> Learning From Your Business Failure
Recognizing that your own business is struggling is the first step. You’ll need to make tough decisions to ensure that you don’t run out of cash and close your doors.
Whether it’s finding a completely new customer base or obtaining funding, it’s okay to take a step back and get your business back on track. It’s all part of the entrepreneurial process.
If you fail in the business or business proposal then this is the way to grow your business-
As challenging as it is to start a business, it is equally difficult to take that business forward. Along with the best strategies, the best plans are also formulated to take the business to its target audience, achieve its goals and grow it. The business proposition included in those strategies and plans is the most important part of moving the business forward. Sometimes, even the best business proposal you present fails to get the appreciation of investors.
The question is, how does rejecting a business proposal affect your business?
And
Even if you fail to deliver a successful business proposal, how should you overcome it?
Let’s talk about what are the reasons-
Why business or business proposals fail?
Reason No. 1
Have You Searched Better?
Have you understood all your client’s needs before preparing a business proposal? Could it be that the client’s needs are different and you have done your research on a different topic? If this is the case then surely nothing can save your business proposal from failure. Therefore, before preparing a business proposal, you must understand the client’s needs. First of all, you should visit the client’s website and blog and collect the required information from there. Only after this the work for the proposal should start.
Reason No. 2
Are You Very Technical?
You are very good at your job, you have all the important skills but your client is new to the tech world and has very little technical understanding. Such a situation can make your business proposal fail. Because of your technical understanding, you forget to consider the customer’s point of view and this same mistake spoils your business proposition.
Reason No. 3
Not Paying Attention To The USP (Unique Selling Point).
Every business and product has a unique selling point, which makes it stand out from the rest. Have you overlooked your unique selling point? While showing the proposal to the client, you should also show your USP very carefully. A unique selling point is a quality that helps you stand out in the market and build your brand value while driving your business forward.
These are the reasons why your business proposal may fail and demoralize you, but now let’s talk about how you should act when your business proposal fails? How can a failed business proposal be turned into a great one?
Reason No. 4
Ask For The Feedback From Your Customers
If an expert is asked about a quality that makes him an expert, his answer will be ‘feedback’. Be it business or any other work, a good feedback plays the most important role in making you expert in your work and removing mistakes from your work. If you face a failure in a business proposal, instead of getting frustrated or upset, be sure to ask for your feedback. Leaving behind the concept of right and wrong, you should accept your reaction with great positivity.
Reason No. 5
Keep In Touch Professionally
Good connections always prove to be of great help and through this formula, you have the potential to turn even your failed business proposal into a successful and brilliant one. You shouldn’t waste your contacts because you don’t get business. In order to move your business forward, it is important that you keep your relationships strong and intimate even with people you have not received business from. A better and positive connection can greatly secure the future of your business. Therefore, it is important to always maintain positivity in your relationships.
Reason No. 6
Ask for a Referral
It doesn’t necessarily mean that if your business proposition fails in one place it won’t work for another place or another brand and can’t be used. It may seem a little awkward to ask at first, but with good conversation you can even ask for other business. Therefore, you should always seek information for any referrals as well. A good referral not only boosts your morale but also makes your business successful and profitable.
A failed business is enough to dampen the morale of any entrepreneur or businessman, but it is important that you learn from your mistakes and apply the suggestions in your business and work instead of letting them dominate your work. So If you also want to make your business successful and want to keep working continuously to take it forward, then you must follow these above mentioned tips suggested.
FAQ about the topic on what is one thing to do if your business is failing?
-
How do you revive a struggling business?
- Adjust your mindset
- Create goals
- Find out why customers are leaving
- Understand your target audience
- Perform a SWOT analysis
- Take a hard look at your finances
- Obtain funding if you need to
- Pivot and change direction
- Invest in marketing
- Take action
-
What is one thing to do if your business is failing?
One thing you can do if your business is failing is to evaluate your business’s performance and identify areas that can be improved. Additionally, take steps to discover possible ways to increase revenue or reduce costs to get your business back on track.
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What to do when your business runs out of money?
When your business runs out of money, identify what is causing the shortfall and find ways to increase your income or reduce expenses. Talk to a financial professional and look for alternative sources of funding to keep your business afloat.
Yours True Friend & Finance Advisor
Harry Bhagria
About Me...
My interest in finance and business started early since childhood. I have
extensive experience managing finances, running businesses and advising on
loans. My expertise includes Credit Cards, Business Loans, Personal Loans,
Vehicle Loans, Education Loans and the Stock Market.
My main Objective, Aim & Goal of life is to share my knowledge with everyone,
even those unfamiliar with finance, so they can understand how to effectively
manage money and grow their wealth....
....HARRY BHAGRIA....Know More in Detail...