In this growing business age, there's a lot of tough competition and challenges business has to face to operate and grow. Before figuring out how to sustain business in tough times, we should consider the major problems why business fails?
There are a lot of reasons which direclty impact the ongoing business. Some of the major reasons why business move towards failure are:
-Unhappy Clients and No Consideration: In business, not all the clients are happpy. The unhappy and un-satisfied clients need to be adressed and their problems to be solved soon. The business should also focus on getting back the trust of previous clients. If the unhappy clients are not considered for longer time, then the negative reviews will take another level. So, if any business has more unhappy clients ignored from a longer time then this may result in declining of of upcoming customers because the whole reviews will be flooded with unsolved queries and negative remarks.
-Low Cash Flow: If your business has low cash flows and it was unable to acquire new clients, then the sustainability of the business will be in danger. Therefore, low cash flows is one of the major problems which can drive business to the darker side.
-Market Expansion: If the business has not expanded it’s market and the revenue or cash flow is too short then the business will get stuck in the middle. If the business has low revenue in their market area, then it will be difficult for them to acquire customers through business market expansion.
-Funding: Funding is the major source of expanding and improving operational efficiency of business. Lack of funds will limit the business market area and the problem will continue to rise from time to time.
-Cash Burns: If you have to burn a lot of cash in acquiring new customers, then the larger shares of your revenues will go in cash burns.
Now, let's come on fact on how to sustain the business in tough times?
-Cost and Expenditure: In order to sustain business in tough times, the first thing you should do is to focus on the cost and expenditure of the business. You should try to closely examine all the expenses made in your business. While examining the cost, identify all the unnecessary expenses and low productive expenses and try to remove it off.
-Manpower Planning: You should do proper manpower planning and identify the work flows, works assigned to the employees or team mates. You need to make sure that the hired manpower is getting utilised properly. If some of the employees are less productive and lower motivation, then you need to make instant decision. Each of such employee can be a liability for the company.
-Focus and Attention: The business needs your focus and attention everytime. You need to delegate the small tasks to the team and focus on the major tasks of the company. May be there is the need to restructure and enhance the revenue model to get more profits. All these things can be identified only if your focus and attention is on the core task of your business. Generally, so many founders and co-founders are so much tied up to their busy life, focusing on different different segments together that they are never fully focused on the major tasks.
-Cash Flows: Cash Flows is one the most important things required to sustain business. You must maintain a cash flow so that all the operational activities of business should not stop. Each of the consumers plays an important role in developing business, so make sure you are able to generate recall value among your consumers and also make sure that the problems of the customers are addressed so that they come back to take your service. The relationship improvement will not only ensure the increase in revenue from them but also attract new customer towards it. Every consumer is moved direclty where they get a better deal, transparency, real time solutions. If these solutions are provided to them then they will be loyal to the company.
-Team Strength: The major strength of every business is the team support and strength. A business is not built up and run by own person but it is a combined effort of whole team working behind the scenes. You must identify the think tanks of your company and make them a part of planning to tackle the current problems of organisation and also prepare for the upcoming problems.
These 5 principles as above are very important to implement and study to make busienss out of tough times. Hope this was meaningful to you. I will be looking forward to the wonderful feedbacks and suggestions from your side. Feel free to write me on firstname.lastname@example.org or visit https://aayushauthor.wordpress.com/