Tuesday, August 6, 2013

How to revitalize and turnaround a failing small business

Turning around a failing business isn’t easy, but it is possible

The key is starting early. Often, entrepreneurs try to convince themselves that a slowdown is just another hiccup, and end up waiting until their business is on the brink of collapse before attempting a reboot.

But even though the thought of revitalization sounds daunting, it’s also a chance to tighten weak points and set a correct course for the future. So, what can an entrepreneur do when a major turnaround is necessary?

Every business is different, but there are basic principles that improve your chances of success.

Know when to get outside help

According to David Ian Gray, founder of consulting group DIG360, the first step is speaking with fellow entrepreneurs who faced similar challenges. Simply asking for advice and resources can put you on the right track.

“[Speak to someone who] isn’t going to recommend something that is overly risky, overly costly, or overly simplistic.’ Gray says.

He also notes that while it doesn’t hurt trying to fix the problem yourself, there are three signs that your business needs outside help: 
  •  You’ve tried everything and the downturn continues
  •  You don’t have the time to plan a revitalization alone
  •  You need help persuading others that something is fundamentally wrong.
Gray says small business owners may be averse to bringing in outside help, as they often overestimate their capabilities.

“[The owner has] been highly successful in a model that’s been developed for a time and place and situation,” Gray explains.

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