SME Business owners - Don't Wait Until It's Too Late to Seek Help

Running a small business is no easy feat. With market competition, financial pressures, and a myriad of operational challenges, it's not uncommon to feel overwhelmed. However, the biggest mistake you can make is waiting too long to seek help. If your small business is struggling, here's why and how you should take action now.

Look out for the early warning signs

Declining sales, falling profitability, ?cash flow problems, increasing creditor days and higher employee turnover are all serious red flags. It is imperative that these signs are heeded and acted upon. Don’t fall into the trap of thinking that the upturn in the market is just around the corner or that big deal that you have been working on for months will suddenly come in. Hope and positive thinking is great but don’t lose touch with reality

Professional Advice

When you're deeply involved in the day-to-day operations, it's easy to miss the bigger picture. Get a fresh pair of eyes, seek out a business growth or turnaround professional and then listen to them. Their advice may be difficult to hear but if it means the difference between the success or failure of your business then you need to swallow your pride. External experts, can provide valuable insights and strategies. They bring a fresh perspective and can identify issues you might have overlooked.

Get a tight financial grip

If things are difficult then ensure that ?you have a granular view of all aspects of the business but particularly the numbers. Make sure you understand, in detail, the profitability of every sale, make sure you manage your debtor days as tightly as possible and look for ways to reduce them and improve your cash flow. Review all of your expenditure and cut anything that does not contribute directly to the profitability of the business.

Leverage Government and Community Support

Governments and local organizations often offer support programs for small businesses, including grants, low-interest loans, and tax incentives. Research what's available in your area and take advantage of these resources to ease financial strain and foster growth.

Talk to other business owners

Connecting with other small business owners can provide emotional support and can be a source of practical advice. Join local business groups, attend industry events, and participate in online forums. Networking is a very cost effective way to generate new opportunities and to establish potentially mutually beneficial partnerships.

Focus on Core Strengths and Adapt

When time are tough , it is crucial to focus on your core strengths and adapt to the changing market.. Streamline your operations, cut unnecessary expenses, review staff efficacy and contributions and concentrate on what your business does best. Don’t be afraid to make the hard calls.

Invest in Marketing and Customer Engagement

When budgets are tight, it is not uncommon for struggling businesses to cut marketing and to pull back from customer engagement. Both tactics are wrong, you may need to review your marketing strategy and make more use of cost-effective digital marketing to reach new customers and to re-engage with existing ones. Customer engagement should be seen as a priority as this will ensure that existing customers will be retained and will often uncover new opportunities and new clients. ?

Validate your sales pipeline

As a business owner it is very easy to fall into the trap of believing your sales team and trusting their forecasts. Remember that most sales people are very optimistic and the next big deal is always round the corner. It is critical that, if you are going to save your business, you have an accurate understanding of exactly what opportunities are out there and if and when they are likely to close. Asking difficult questions, early on, can ensure that you have a good understanding of what sales are coming down the track.

Listen to and support your team ?

Don’t be under the illusion that your team are not aware of the problems within the business they will be, ?so talk to them. Explain what your recovery strategy is, introduce them to the external advisor ( if you hired one) encourage them to bring forward ideas and suggestions. The last thing you want is a vacuum around what is going on, they will fill that void with speculative but often worst case scenarios and will be looking to jump ship. This is the last thing you need, you cannot rebuild without people. I am not suggesting that you carry deadwood, if someone is not contributing then cut them loose but do it as nicely as you can and remember they will probably have families and obligations. ???

Don't Be Afraid to Pivot

Sometimes, the best solution is a significant change in direction. If your current business model isn't working, don't be afraid to change it. ?I know the business was established to head in a particular direction with a specific business model but if it not working , then have the courage to admit it and to change it. Whether it's introducing new products, targeting a different market, or changing your operational approach, being open to change can save your business.

Conclusion

Struggling small businesses often wait too long to seek help, exacerbating their problems. By recognizing issues early, seeking professional advice, leveraging available resources, and staying flexible, you can turn things around. Don't wait until it's too late—take proactive steps now to secure the future of your business. Your positive actions today can set the foundation for tomorrow's success.

Mark Plant is a business turnaround, recovery and growth professional with over 30 years experience helping business owners get back on track

?