The Pain of a Struggling Business

When starting a new business, things can feel idealistic and magical. You think anything is possible. The excitement of it all might consume you, and you don’t see early warning signs when your business begins to struggle.

Absent a mentor, consultant, or coach, you may be unaware of how much time, energy, and money you have left in the tank until you get put to a real test or crisis. Successful businesses don’t form or thrive in a vacuum. They result from a good idea, wise counsel, and much action.

When the first wave of crisis crests across the bow, your resources, resilience, determination, and willingness become apparent; if things are bad, it could give you clues about the long-term viability of your venture. It’s never easy to navigate the waters around a struggling business – primarily when other people depend on its success – but with help, the task can feel less daunting and hope for the future more attainable.

What is a Struggling Business?

A struggling business is one experiencing consistent or increasing financial losses or that has very little income. You can also define a struggling business as not growing or obtaining new customers at a rate consistent with projections. A company may struggle with its marketing plan, staffing plan, or plan to manage inventory and production. Challenges with quality control, both in customer service and production, can cause stress on a young business. It might be a factor outside of your control, like an economic downturn. A company might struggle and be worth saving, but the core issue(s) need to be addressed quickly.

Why do businesses struggle?

·????????A lack of capital is the most common reason a business struggles. If you don't have enough money to make it through the start-up phase, you will have difficulty moving forward.

·????????Lack of planning: If your business plan is flawed, or you haven't done the appropriate research about your market, it can be challenging to get off the ground. This is especially true if you're trying to start a new type of venture that hasn't gained traction before.

·????????Poor product/service quality: If your product or service isn't something people want or need, it won't be easy to get customers to buy it. If you don't correct the issue, your business will struggle to stay afloat.

·????????Bad timing: This can be as simple as starting your business in a poor economic climate or choosing to open a retail store during a busy holiday shopping season. This can make it challenging to keep your doors open as you wait for customers to arrive.

·????????Bad luck: While you can't eliminate bad luck, you can increase your chances of success by being careful and making smart well-advised choices.

The Hidden Costs of a Struggling Business

When a business struggles, hidden strains accompany the more obvious stress points. Some of these include:

·????????Personal challenges: higher alcohol and substance abuse rates are noted in business owners experiencing extreme stress.?

·????????Challenges at home: It is noted that relationships break up at a higher/faster rate for business owners experiencing extreme stress.?

·????????Management distraction: If your business is struggling, you may also struggle with the minutia of management. You may be so focused on keeping the company afloat that you don’t have the time or energy to make the best decisions.

·????????Declining morale: When employees see their boss struggling, they worry about their jobs. This can lead to lower morale, less productivity, and a challenging work environment. ?

·????????More risk: When money is tight, companies are less likely to utilize risk-free resources. This can lead to costs that come from having to pay for issues as they come up. The business may also be less likely to take a giant leap to help move it forward.

3 Strategies to Help Your Struggling Business

·????????Tighten your budget: It can be tempting to think you can get through a rough patch by spending more. However, this can lead to more debt and compound the problem.

·????????Hire additional help: If one person does all the work, they are likely to burn out. When this happens, they may leave your business entirely. Hiring more help may not come cheap, but it will help you get more done and make your business look more effective.

·????????Invest in your business: If you think you can handle the situation alone, you may feel like you don't have the extra cash to make investments. However, investments can pay off in the long run by helping you get new customers or by making your existing customers happier.

Conclusion

When a business struggles, the natural tendency on the part of owners, is to isolate, believing they'll weather the storm and all will be fine. However, getting back to the surface can be challenging once you start sinking. Going it alone, without the support of an advisor, consultant, or business coach, can be a recipe for disaster.

The best way to deal with a struggling business is to, with support, identify the problem and act. If you and your support team can’t fix everything overnight, you can take steps that can help you move in a more balanced and wise direction.?

When asked why I believe my work as a business coach is essential, I reflect on how business coaching can turn around businesses and the lives of those who found and run them. Coaching changes lives.??#coach #coaching #smallbusinesscoach