Four Areas to Watch In Order to Save Your Business

Across all the businesses I have coached/guided through a turnaround process, I have seen patterns that seem very consistent in these struggling businesses. The businesses have all been in different industries, yet each of them had these four characteristics when I was asked to get involved.

1. Lack of Energy:

The lack of energy was palpable from the moment I walked in. It was seen in the workplace, in the staff, and even the customers. It felt boring, cold, and dark. Despite plenty of sunlight, the businesses all radiated a dark cloud.

In one example, we simply rearranged and spruced up the retail space, since it had been a certain way for a long time. No new products. No change in the process. Something so small and simple was enough to invigorate the customer experience. Customers suddenly started made comments about how great the store looked and how much they loved the new products (Remember, we didn’t add any products, but the change in energy brought an entirely new perspective from the customers.) Total Cost: About $40.00 and little bit of sweat.

When I was asked to get involved, this particular business was preparing to close their doors in 1-2 weeks. After the changes described above, along with other adjustments, the business survived and continues to do better than it ever did before.

2. Disorder:

I love order, tidiness, and cleanliness, so any level of disorder stands out to me. Some of the businesses may have looked clean and orderly to customers, but behind the scenes was a different story. Disorder reared its ugly head in the form of sloppy accounting, messy offices, mountains of paperwork, etc.

When there is clutter and disorder, it becomes a distraction. It is difficult to make good decisions when things seem chaotic, and things get overlooked and fall through the cracks. In most cases, the accounting was so sloppy that it was hard to even know how much money the business was making -- or losing.

Take a moment to step back and look at your business as if you were a third-party. What do you see? What needs to be addressed?

3. Lack of Systems:

You have probably heard the wisdom to "work on your business and not in your business." In each of the businesses I have described, the business owner was simply trying to manage it all without establishing proper systems. The lack of systems led to bills not being managed and paid properly, cleaning procedures not being followed, metrics were not being watched, and much more. Ultimately, it led to burnout of the business owner and staff.

Setting up systems can start small and be built. Determine the who, what, where, when, why, and how of aspects of your business. Examples: Who is going to pay the bills and when? Who will make sure the facility remains clean and organized? How will you make sure mistakes aren't made in your customer orders? Establish written protocols and be consistent. Hold people accountable, including yourself.

4. People:

When I got involved with these businesses, I started interviewing customers immediately. In every case, the customers loved the products or the service, but did not always like the people (the business owner, the staff, their sales rep, etc.). That is tough to recognize or accept, but it is true. If customers don't like working with you (or your team) and lack trust in you, it will be hard to maintain their business. In several instances, business owners told me, "This is the way we do things. If customers don't like it, they can go elsewhere." They did. And that's why I'm here trying to save your business.

Sample questions I asked customers were, "If we changed the way we did x, would you come back? If we added those products you have to buy elsewhere, would you purchase from us instead? If you no longer worked with [team member], would you bring your business back to us?" The feedback from customers was extremely valuable. It was like having dozens of free business consultants. If the businesses cared for them, the customers would gladly give more money to the business. See how that works?

Customers need to love you as much as they love what you are offering. Do you do what you say you are going to do? Are you looking out for their best interest? Are you fair and honest? Or even more basic, are you simply a nice person and good to work with? Ask yourself the tough questions and determine what you need to adjust.

Summary:

This list certainly isn't exhaustive of all the things that may cause a business to struggle or fail. Some things may be entirely uncontrollable for a business owner; however, the list above is in full control of the business owner. If your business is struggling, it can quickly lead to frustration or lack of energy for your business. The vision for the business and the decision making can quickly become clouded. If you need help solving some of these challenges, seek out an experience business coach to guide you through the process.