Your small business is struggling to stay profitable. What can you do to turn things around?

Following the advice of Peter Drucker I wish to say this about furthering the cause of your business: 1) Innovate 2) Communicate. 3)Repeat the cycle. #StrathmoreUniversity #ProfDaSilva

One thing I found most helpful is collaboration, yes four hands are better than two. Every one wants to be Han Solo but at the end of the day working with your network and team collaboration reap the most benefits. This will apply to smaller businesses more as they don't have the financial clout during rough times. Build relationships with partners who are willing to stand with you at your lowest and elevate you when you need the push. Stay focused and don't give up.

In line with Peter Drucker's insights, I'd like to emphasize the following steps to propel your business forward: 1.Foster innovation. 2.Enhance communication. 3.Continuously iterate and evolve.

You have to start from a high level analysis of both your financials as well as the macro and sector trends. Otherwise you might miss the root causes. Imagine you are for example looking at your revenues during a lockdown or your costs during a major inflation spike ! So anything that might affect demand : economic environment, competition change, technological breakthrough, law and regulation changes etc. Once you have identified the macro trends, look at your own competitiveness, your organisation both in terms of staff and management, your cost base separating fixed from variable, your cash flows incl. capex and working capital, and finally your capital structure. Make sure you always do your financial analysis over at least 3/5 years.

Look for opportunities for cost cutting without compromising the overall business stability , explore new revenue streams perhaps by considering aspects of business similar to your core competencies, improve marketing and sales efforts, by understanding customer needs better and also in the long run establish solid relationships and build trust. Explore white spots in the market that have needs for your services or products but few or no one is servicing them. Engage with customers for feedback at every opportunity.

Not only are personal finances tough to handle, but poor business $$ management can easily bring a business to slow. One of the most important factors is to find an advisor or planner that aligns with your business values and can analyze the best ways to propel you forward. It is hard to zoom out and look at the full picture; find someone that can hold you accountable to do it. Find a running partner.

Turning around a struggling small business requires a multi-faceted approach. Cutting costs strategically, exploring barter or trade, and diversifying offerings can revive profitability. Despite being traditional, these methods effectively drive growth and collaboration. In order to achieve success, it's crucial to maintain open communication with your team, leverage online marketing channels, and stay adaptable to market dynamics; remember, some learnings are free and can be self-taught, so embrace the journey of learning and growing—after all, at least you tried! Diversifying products or services can be a powerful strategy to consider, involving low or no costs. Never let your ego prevent you from seeking help from the right person!

Finances are always sensitive. But you should learn how to cut expenses at any time which do not affect your business much. In most cases it's people and tough decisions you have to make as a part of your main responsibility. It is always emotional, because it is always about people. Keep with you a few financial plans, like "green", "yellow" and "red" for each case: growth and stagnation. At least 6 plans, sounds a lot. But it gives you some freedom dimensions.

You have to find efficient cost savings methods for your operations. Reduce unnecessary expenses, leverage economics of scale and ensure that your records are kept up to date and accurate

In a small business, you might be focusing on too many things, new products, and revenue channels. Look back at what made you the most profit over the last 12 months and put all resources into repeating that process. Ask the tough questions, (1) Is it repeatable? (2) Is it scaleable? (3) Will doing that make a sustainable business?

Re-plan your marketing strategies. This can help your small business identify and leverage its unique strengths and competitive advantages of your product or service. Highlight what sets you apart from competitors, you can position your business as the preferred choice, attracting more customers and improving profitability. In today's digital age, having a strong online presence is crucial. Utilizing digital marketing tactics, increase your presence on social media, humanize your brand, and participate in social activities, gathering customer feedback and testimonials, these are ways, some of them at zero cost, that can help.

Focus on why your customers buy from you, talk to the sales team, and embrace your vision and mission, because those elements will tell you why you win in the market, and those are the ones you may not want to adjust, but preserve or invest instead. It is about cutting smart.

This Is the most important facet Small businesses don't have processes and systems which leads to inefficiency By putting in processes and systems the small business will be able to find out how to grow

To revitalize a struggling small business, focus on cutting costs and enhancing efficiency. Conduct a thorough review of operational expenses, identifying areas for reduction without compromising quality. Renegotiate contracts with suppliers for better terms and explore technology to streamline processes. Optimize staffing levels and cross-train employees for flexibility. Implement energy-saving measures to reduce utility costs. Embrace digital tools for marketing and communication to reach a broader audience cost-effectively. Regularly monitor financial performance and adjust strategies accordingly. By prioritizing cost-cutting and efficiency improvements, the business can enhance its financial resilience.

1. Get control of your cash flow. Make sure your bank accounts are reconciled properly, then create a forecast of expected inflows & outflows for the next 6 weeks. Cash is King. 2. Collect receivables. Collect small receivables and follow up with delinquencies. Be open that you need them to start making partial payments. 3. Payables. Get extensions as needed & practical. Contact all of your vendors that you're getting behind on, and be open about the situation. Offer & agree on a payment plan over time. You'd be surprised how often a vendor will help you out, as long as you have a good history with them, show transparency and do your best to follow through. 3. Focus on the reasons the business is struggling. Sales, inventory shrinkage?

Start by really understanding why you spend money in the first place, how you can decrease this amount and make your cash flow more efficient: 1. Analyse every transaction on your bank account from the last 6 months. Cut all costs that are not necessary to run the business. Some costs might be more about your own ego than your needs. 2. Increase cash flow efficiency: Negotiate longer payment terms for your business AND change your own payment terms for your customers. Get money in faster and pay out slower! 3. Re-evaluate all of your suppliers: Negotiate discounts or/and when possible try to find an alternative supplier or item that has better price and better payment terms.

En situaciones de dificultad financiera, es crucial revisar meticulosamente los procesos y costos actuales. Mi recomendación sería analizar cada segmento de gasto y evaluar su impacto en la operación. A menudo, identificar y eliminar gastos superfluos o renegociar contratos con proveedores puede liberar recursos significativos. Además, optimizar procesos mediante la automatización puede aumentar la eficiencia y reducir costos a largo plazo. En mi experiencia, implementar sistemas de gestión financiera que automaticen tareas repetitivas, reduciendo errores y tiempo de trabajo, resulta en una disminución notable de costos operativos y un incremento en la eficiencia.

To cut costs and increase efficiency for your small business, you can review your expenses and identify areas where you can reduce or eliminate unnecessary spending, streamline your processes and workflows to reduce bottlenecks and redundancies, use cheaper or more effective products or services, and repurpose your existing tools and technology in new ways. You can also adapt to customer and market demands with leaner solutions, and combine your goods and services across your organization to reduce costs. These strategies can help you improve your profitability and competitiveness.

Take a look at your monthly recurring cost. Maybe you can renegotiate utility contracts, telecoms contracts, office rents. You might save money directly, or at least build some flexibility into long-term contracts. This can help you adjust your overhead costs during sustained periods of lower profitability.

Don't fall into the trap of thinking that more tech is better. Businesses get overloaded with administrivia because of too many apps. You have to learn each one well, and you have to get all of them to interface. That eats time and money. Have fewer, high-quality apps that you use very well.

Struggling Small Businesses definitely need to optimize revenue coming in. So for me, these are the 4 key areas of focus; 1. Value-Added Services: Offer additional services or products that complement the core offerings. 2. Diversification of Revenue Streams to De-Risk: Explore new markets, products, or services to reduce dependence on a single revenue source. 3. Targeting and Niche Down: Focus on customer segments that generate the most value. 4. Customer Base Diversification: Avoid over-reliance on a small number of large clients. Execute Execute Execute

Increasing sales and revenue is essential. Identify segments with high sales potential and customer retention. Enhance the user experience within those segments to build customer loyalty, thereby boosting overall sales and revenue.

There have been a lot of market disruptions due to supply chain clogs and such. Occasionally it would be good to survey customers to see what they need that you aren't provide. May be good to use some of that insight to add a new product line or specials for a limited time and scale up if it becomes a popular offering. You shouldn't rely on government assistance, but there are grants and incentive that could help your math in the purchase of new equipment or infrastructure for your business. It will not cover everything, but if goals align with program requirements then you can bring on that new product line faster than you otherwise would have been able to do. Marketing and keeping true to your core value is also key. Don't spread too thin

To bolster a struggling small business, focus on boosting sales and revenue. Conduct market research to identify customer needs and tailor products or services accordingly. Develop targeted marketing campaigns to reach a wider audience and capitalize on existing customer relationships. Introduce promotions or loyalty programs to incentivize purchases. Explore partnerships or collaborations that can expand your market reach. Leverage digital platforms for e-commerce and online sales. Regularly assess and adjust pricing strategies. By proactively addressing sales growth, the business can stimulate revenue, improving its financial standing and long-term viability.

Understanding your monthly business costs is crucial—it's the key to knowing the revenue you need to stay operational. Selling physical goods? Ask yourself: Who benefits most from my products? Tailor your marketing strategies to this demographic. Utilize social media for promotion, focusing on videos and product demonstrations to SHOW your product addressing specific customer needs. Selling a service? Pinpoint the exact problem your service solves. Amplify your marketing efforts by concentrating on this aspect. You don't have to cater to everyone - excelling in a smaller segment can significantly elevate your brand's presence and reputation. Make sure your approach is unforgettable. Stand out! You want to be memorable.

I think it's still underestimated how much a GoogleAds campaign can do for a small B2C business. Especially if you work locally, it's one of the best ways to be the first choice for your potential customers.

Making sure that your decisions are based on solid data is also important. Keeping track of expenditure and ensuring that no frivolous spending is occurring may sound simple but these add up.

Increasing revenue is easier said than done. There's a key economic principle that can allow you to increase your pricing: Perceived Value. Cutting costs can prove to be exceptionally difficult, and raising prices is not often received well. However, if you raise your Perceived Value, customers will still feel that the product is worth it even after raising the price. There are several ways to accomplish this. 1) Increased investment in marketing can help. However, this can be costly. 2) Improving the design of your product can inspire the idea that you've improved it in some way. Branding is an important sales driver. 3) Emphasizing an ESG aspect of your product (ex. if it is recyclable) can add PV for consumers that value that aspect.

To boost your sales and revenue for your small business, you need to implement effective marketing strategies, attract and retain customers, and optimize your pricing and products. You can use data on customer purchases and preferences to create targeted promotions and offers, provide personalized training and service to your customers to increase their loyalty and satisfaction, cross-sell and upsell related or premium products or services to your customers to increase the average order value, and streamline your processes and workflows to reduce bottlenecks and redundancies. These tips can help you improve your profitability and competitiveness.

Focus on Areas where Demand is Strong : 1. Conduct surveys, Read trends in your Industry and Validate information. 2. Your idea of Strong Demand should be supported by Data. 3. Strengthen existing sales channels of your business and Explore potential ones. 4. Focus on Digital Marketing but spend within Budget.

Internal Assessment: Evaluate your operations, marketing strategies, and team efficiency. Identify bottlenecks, inefficiencies, and areas for improvement. Consider employee morale, customer service quality, and product/service offerings.

Enfóquense en establecer KPIs claros que reflejen tanto la salud financiera como operativa de la empresa. Analicen la rentabilidad por producto o servicio, y revisen los costos fijos y variables regularmente. Prioricen la gestión de flujo de efectivo y realicen proyecciones financieras para prever escenarios y tomar decisiones informadas. No descuiden la importancia de invertir en innovación y capacitación, pero asegúrense de que cada inversión esté alineada con la estrategia y objetivos de la empresa. Finalmente, mantengan una comunicación abierta con inversores y socios estratégicos para explorar oportunidades de crecimiento y colaboración.

To track and measure your performance for your small business, you need to use the right metrics that reflect your goals and priorities. You should monitor your sales revenue, net profit, sales growth, average monthly leads, and average lead conversion rate to gauge your marketing and sales performance. You should also track your customer lifetime value, customer retention rate, customer satisfaction, on-time delivery rates, and shipping accuracy to measure your customer service and experience. Finally, you should keep an eye on your payroll, overtime cost, vehicle and driver utilization, and other operational metrics to optimize your efficiency and profitability.

Highly successful businesses continuously evolve and improve by actively listening to customer needs. Prioritize creating an excellent user experience aligned with customer requirements. Happy customers lead to increased sales, reduced advertising costs, minimal marketing efforts, and a powerful word-of-mouth effect, contributing to long-term success and scalability.

En lugar de solo medir ventas o beneficios, incluye métricas de comportamiento del cliente. ¿Cómo reaccionan a cambios en tu negocio? ¿Qué te dicen sus acciones sobre sus preferencias? Utiliza esta información para adaptar tus estrategias y mejorar continuamente. La conducta, al igual que el precio es una ecuación que contiene en sí todos los estimulantes o componentes que la manifiestan. Fíjese en cómo actúan sus empleados o clientes y qué podría hacer usted para incentivar una conducta más benéfica para su negocio. Un empleado incentivado correctamente actúa de forma más sincera y colaborativa. Un cliente bien atendido y entendido compra dos o varias veces.

A good ERP and the right people managing it should solve this. You need to easily track and understand your KPIs and you need to understand the KPIs limitations to make accurate decisions. Transparency is key.

You need to find the weak link. Track and analyze the satisfaction of your clients. Use the results to improve your offering and product/service delivery. Keep aand refine an updated dashboard that will help you to monitor your performance and focus your time/resources on the most relevant elements. Building and maintaining the right dashboard makes a lot of difference.

When facing business challenges, having someone experienced in your field, whether a mentor, fellow business owner, or a friend with a business background, can provide valuable guidance. Utilizing your network to connect with the right people can be instrumental in overcoming difficulties.

In challenging financial situations for your business, seeking professional help is paramount. Engage financial advisors or consultants to conduct a comprehensive analysis of your financial health. They can provide strategic insights, offer solutions for debt restructuring, and guide you through potential funding options. Legal and accounting professionals can navigate complex regulations and ensure compliance. Their expertise provides a fresh perspective, offering tailored strategies to overcome financial hurdles and steer the business toward stability. Embracing professional assistance is a proactive step that can lead to well-informed decisions and a more resilient financial future for your business.

En tiempos de dificultades financieras, es esencial buscar asesoría especializada. Recomiendo una revisión profunda de la estructura de costos, optimización de procesos y replanteamiento de las estrategias de ingreso. Controlar la liquidez y establecer indicadores clave es vital para ajustes oportunos. En mi experiencia con una startup tecnológica en crisis, implementé un plan que incluyó reestructuración de deudas, optimización del capital de trabajo y diversificación de ingresos. Esta estrategia no solo estabilizó las finanzas sino también promovió un crecimiento sostenible.

Posiblemente lo mejor sea buscar un consejo asesor o mentores que brinden su know how en la primera etapa cuando es difícil afrontar sueldos onerosos

Com certeza! Consultar profissionais como contadores, coaches de negócios ou consultores financeiros pode ser crucial para obter orientação especializada. Esses especialistas podem auxiliar na análise financeira, elaboração de orçamentos, previsões de fluxo de caixa e até mesmo em decisões estratégicas como empréstimos ou subsídios. Sua experiência é valiosa para evitar desafios comuns, como questões fiscais ou disputas legais.

Given that you have already discovered that your company is profitable, it is paramount to conduct a deeper investigation to understand the true root of this issue. The most efficient way to diagnose this problem is through the analysis of your business's data, spanning all sectors and with a keen eye and open mind to take action in the face of all the problems encountered. For this, the assistance of a professional with an impartial and external perspective to your organization can bring solutions and valuable insights that may save your business.

Seeking professional help for your small business can provide valuable expertise and resources. Whether it's hiring a financial advisor to manage your finances, consulting with a marketing agency to enhance your promotional efforts, or working with a business coach to develop effective strategies, professionals can offer insights and guidance to drive growth and success. They bring specialized knowledge and experience to help you navigate challenges, optimize operations, and make informed decisions. Additionally, professionals can offer fresh perspectives, industry insights, and networking opportunities that can have a significant impact on your business.

Seeking professional help for your small business can be a wise decision, especially if you are facing complex or unfamiliar challenges, or if you want to take your business to the next level. There are different types of professionals who can help you with various aspects of your business, such as accounting, legal, marketing, coaching, and consulting. You can find them online, through referrals, or by using a business adviser search tool1. To ask for help professionally, you should clarify what you need, make your request SMART, find the right person to ask, consider the tone of your message, express your gratitude, and create a workplace culture where asking for help is encouraged.

Of course, in navigating a struggling small business, reshaped finances, optimizing and cost cutting are needed. Yet, beyond spreadsheets, I've realized the power of personal branding. Crafting your unique narrative aligns values with business ethos, fostering trust and transforming transactions into connections. In this financial overhaul, its not just about crunching numbers; its about building a brand that speaks of a journey – your journey. It's the fusion of fiscal acumen and authentic storytelling that weathers the storm and emerges stronger.

Pequeños cambios pueden hacer la diferencia: a. Diversifica tus canales de venta. El canal digital, que no necesita una renta fija, puede ayudarte. b. Revisa tu servio al cliente, un buen indicador es cuando el cliente te refiere o tienes clientes fieles. c. Tu proceso interno, no necesita grandes costos, quita la ‘revisionitis’ y haz responsable a cada persona de su proceso - se más eficiente y productivo d. Enfócate en lo que te da valor. A veces uno quiere hacer mucho y no hace nada. e. Busca cuentas bancarias que te generen interés altos.

1.-Concentrarse en el producto o servicio estrella de la empresa. 2.- Enfocarse en una buena campaña de marketing, apuntar a las redes sociales al mismo tiempo tratar de ampliar la red de networking. 3.-Mantener los gastos al mínimo posible. 4.- Ser creativo y mantener siempre una actitud positiva ante la adversidad.

Small businesses usually have following problems: - not enough funds, - lack of financial knowledge, - lack of knowledge of the market and - lack of commitment. First of all you need to define which of these lacks is causing the problem. Then accordingly you should make plans what are the best steps to solve them. When you finish analyses and planning then you should find someone with more experiance and expertise and discus your plans. Whan you get the opinion you should re-exemine your plans and prepare action plans with follow up for each step. If it is not working you should re-exemine plans again and repeat cycle as long as you need to get the results you want.

For a small business grappling with financial challenges, consider proactive measures to navigate the difficulties. Begin by conducting a thorough financial analysis to pinpoint areas for improvement. Seek professional advice from financial consultants or advisors to devise strategic solutions tailored to your specific situation. Explore options for debt restructuring, cost-cutting, and revenue enhancement. Maintain transparent communication with stakeholders and suppliers. Embrace digital tools for efficient operations and marketing. By addressing financial issues promptly and adopting strategic measures, small businesses can enhance their resilience and work towards sustained profitability in the face of challenges.

Reevaluate your business model to identify areas for improvement. Consider if there are changes you can make to increase operational efficiency, reduce costs or improve your profit margins. Conduct market research to allow you to adjust your product or service offering to better meet market demand and increase your sales. Identify internal processes that can be optimized and review your expenses, looking for areas where you can reduce costs without compromising quality or customer service. Keep strict control over your cash flow to ensure you are covering your expenses and payments on time. Implement effective collection policies to reduce the risk of outstanding accounts receivable and look for ways to accelerate your revenue.

All financial and operational improvements have to be in place. In my view all those come as secondary measures. The first is "rethinking the market strategy". Focus not only to survival but to sustainability of best practices - adapted business model, structure and processes that support the major competitive advantages. Small businesses have chances on niche markets and there they could build loyal clients more easy. There might be two approaches - fast innovation proved by existing loyal clients or flexible adaptation to changed clients needs.

If you're a small business working in the clean energy sector, consider looking for grant options. The Biden Administration recently passed a number of grants in the Inflation Reduction Act. This "Notice of Funding Opportunity for approximately $2 billion dollars in Inflation Reduction Act funds in environmental and climate justice activities to benefit disadvantaged communities through projects that reduce pollution, increase community climate resilience, and build community capacity to address environmental and climate justice challenges." Learn more about it on epa[.]gov.

Before one engages in the scrutiny of the financial state of a small business, some foundational questions need to be explored. Firstly, is there a demand for the product/service, evident through a gap in the market? Secondly, does the product/service create value, does it meet a need, or does it solve a problem? These foundational questions are the beginning steps to determining whether the small business has a chance at survival. This is then followed by an attractive and effective marketing strategy, efficient pricing strategy according to the understanding of the stage of the business in the entrepreneurial journey, and the ability to learn and adapt to experiences in the journey and innovate as changes in the market as they occur.