If your business is facing a crisis and you’re not sure what to do next, there are three strategies you can consider.
Initially, focus on selling current products or services to your existing good customers, as it should be the easiest to do. They know you. Then contact the rest of your customer database with phone calls, emails, visits, social media or e-newsletters with special offers to cross-sell or up-sell to other product lines.
Next, look for wider opportunities to increase sales as some industries or markets will be doing better than others. There are a number of ideas you could investigate including:
You could also look at partnering or collaborating with other businesses, some who may be struggling but others will be thriving. Do whatever it takes to keep your business afloat until the market corrects itself back to business as usual.
If drastic action is required, think about keeping the parts of your business that work and reinvent or re-structure your business to adjust to the new normal. Take a close look at what can be salvaged and then act like a new start-up to build a new, stronger business on the foundations of the old one. Think about what you would do differently and how it would make your business look.
You may want to:
If you can, establish one or more identifiable target markets and then design your business around providing an exceptional service offering in that area. Customers will still need to know what is special about your business to set you apart from your competitors, so try to differentiate with unique products and services.
Once you decide to restructure, obtain as much input as you can from your advisors, existing staff, industry experts and those you trust for business advice. Don’t forget to search the internet, subscribe to industry news, visit business association sites and talk to suppliers to validate your ideas.
If the first two strategies are not feasible, it may be time to consider selling your business or winding it down. This is often a difficult decision, but it could offer a fresh start or a way to recover value from the business you’ve built. When selling, the goal is to maximize the price and make sure the transition is smooth. A well-prepared sale can bring in more than simply selling off assets, inventory, or real estate. It can allow you to sell the business as a going concern, which typically yields a higher price.
To make sure you get the best return, start by evaluating your business from a buyer’s perspective.
It’s also essential to prepare for the legal and financial complexities involved in a business sale. Consulting with professionals, such as your accountant and lawyer, can help you deal with tax implications, make sure proper contracts are in place, and avoid common pitfalls. A business broker can be a valuable asset in finding the right buyer and managing the sale process, from market valuation to negotiating terms and completing the transaction.
Ultimately, selling your business can be a way to move forward, but it requires careful planning, preparation, and professional guidance so that you maximize its value and minimize risks.
