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.

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

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.

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

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.

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.

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.

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.

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.

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 orienta??o especializada. Esses especialistas podem auxiliar na análise financeira, elabora??o de or?amentos, previs?es de fluxo de caixa e até mesmo em decis?es estratégicas como empréstimos ou subsídios. Sua experiência é valiosa para evitar desafios comuns, como quest?es fiscais ou disputas legais.

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.

Peque?os 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 campa?a 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.

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.