The implementation of GST in 2015 resulted in both the good and bad. While some businesses welcomed the move, there were also many businesses that were badly affected. In tandem with the rising costs of expenses, frugality became a focal point of Malaysian locals.
As such, business owners felt wary of their stability, particularly due to a lowering of consumer purchasing power. Many felt as if closing was the most viable option.
While signs of better times are on the horizon, the opportunity costs for businesses that are or have been suffering seems risky.
If you are a small business owner who is thinking of shutting down, here are some tips you can take to save your dying business!
1. Assess Your Situation Truthfully
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It is necessary to understand your situation fully.
Shutting down a business can feel like a major loss and failure; therefore, it is important to clear your mind before planning. You need tangible figures to make such a decision.
Figures like sales trends, profit & loss margins, break-even-analyses, etc., will help you make a reasonable decision on the future of your business.
Vague reasons such as no one caring, blaming employee motivations and people just not liking you are emotionally-charged responses.
These are most like untrue. Even if they were true, they are not tangible concepts that necessarily keep a business running. Be shrewd but honest with your present condition.
2. Reorganising, Strategising
“Insanity is doing the same thing over-and-over-again and expecting a different result”.
This cliché is often regurgitated by advisory parties for a reason. You cannot expect to save your business by applying the same tactics that got you there in the first place.
There are extenuating circumstances, but the reason why some businesses take a backseat in tough times is because their strategy is not competitive. Chances are you have considered this but are unable to come up with a definitive solution.
The key is not having a definitive solution, it is trying something new. If there was a one-way-ticket for business recovery, no one would face such adversities. You know your business better than anyone else, so you would know the most relevant strategies.
3. Internal Management
Musicians preach that a band is only as good as their drummer. Likewise, employees are only as good as their leader, who is most likely yourself or their managers. Ensure that the people in-charge are providing the necessary momentum for performance.
Your people are the assets that help drive your business. Note that it is easy to shift the blame to someone else when things aren’t running smoothly. Likewise, it is also easy for a charismatic individual to abdicate themselves of responsibility.
Use tangible figures like key performance indexes (KPI), sales performance and team sales figures to see where your weakest link is and how to improve upon it.
4. Maintain A Vision
It is common to lose sight of your vision when delving into the nitty-gritty details of management. Try surrounding yourself with reminders of your initial vision. This will help keep you on track when working through difficult times.
If your business has been around for several years, perhaps your vision is no longer relevant in current times. In that case, it would be wise to assess what your ultimate goals are for your business.
Actionable Takeaway:
Success in business is less about tips, tricks and hacks. Success is determined by your mentality, psychology and determination.
Luck can bring others to places in an instant, but the truly gratifying moments only come to those who have their will tested, and overcome their adversities.
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