When we are looking to start a business, we would never think that it would hit dire straits so early on. But while it’s an overused statistic that 80% to 90% of businesses fail within the first year, we’ve got to recognize the importance of this statistic. When a business is struggling, we have got to find ways to turn it around, but this means that we’ve got to take a long hard look at our company and think about the right investments. Perhaps they haven’t been the best investments so far. So what are the right ones to improve a struggling company?
The Right Marketing Channels
When a business is struggling, you may not necessarily think that marketing is the right thing to invest in but when you spend a lot of money on specific marketing processes, you may have to start confining your investments somewhat. Or at the very least, you need to think about investing in the right processes for you. Consulting a digital marketing agency can give you invaluable advice on the best investments so your business can expand its reach. We have to remember that when a business is struggling, that it’s all hands on deck. But this could mean that we spend a lot more time being insular and focusing on the internal processes, which means that when the business gets back up to speed we’ve got to restart the promotional machine again. It’s far better to start with the message and keep it in the consciousness of our target markets.
Is It Time To Outsource?
Outsourcing yields many positives and negatives, but as a company is struggling, it means that we have to figure out the best processes to benefit us right now. Outsourcing is fantastic because it can help us to focus on the most important aspects right now. Outsourcing can mean getting rid of expensive processes and replacing them with cheaper ones, but it can also mean getting rid of staff members. And when you are struggling, you may find that picking people off one by one can result in a lack of morale. Outsourcing can be fantastic but you have to tread carefully.
Should You Raise Your Prices?
When we are struggling, we’ve got to get help from every available source, this means that we may start to think about raising the prices of the products slightly. This can very easily anger our customers, but what we can do is work on nurturing that relationship between business and customers so that they understand why. The fact of the matter is, if a customer is dedicated to a brand, they will stay with you. But when your business is struggling it’s important to retain that consistent communication. When raising your prices it could very well make a big difference in the short-term.
Turning around a struggling business means you haven’t got much money to spare. This means you’ve got to pick your right resources to invest in. As such, this can require a lot of soul-searching. But when your business is going through a difficult time you can’t underestimate the fact that the right resources can turn things around almost instantaneously.