How to Revive Failing Business
The law of averages says it all. Of all the companies launched. 50 % of the companies tend to go under within 5 years of their launch and up to 33% collapse within 10 years of their launch. For those looking to turn around their businesses such as Apple, IBM, and General Motors, they had to hunker down and devise strategic plans to prevent the Company from going bankrupt. Here we shall look at some ways on how to go about doing the same. If they can do it, so can you.
Well to begin with, the Company management needs to recognize that there is a problem, stare the crisis in its face and address the problem head-on. Once this is done, the management needs to ensure that honest communication is rolled out with all stakeholders (team, investors, and even partner vendors) aware of the crisis. This communication must be clear, simple, and well thought out. It could be verbal or written in any format clear to all.
Then it's important to get help, it could be in the form of removing dead Wood employees, getting external help through fresh blood or a new CEO, etc, or even an agency to help put together a revival plan. Or another way could be to promote internal talent and let them rise to the occasion and help in the revival. I mean no one knows the Company better than the existing talent pool. So let them step up with ideas on reviving.
A turnaround hinges on the right products, a Smart supply chain, pioneering leadership, a dedicated team, effective sales personnel, and quick decision making. In India, Anu Aga of Thermax restructured her Company and bought in professionals to run the show. Shoppers Stop under MD Govind Shrikhande shut down unprofitable formats, controlled costs, and rebuilt the Brand image, to script its success.
It's also useful to come up with a mind-blowing product/service which will help the Company to do an about-turn and be a game-changer for you. It could be as simple as introducing a faux meat product catering to the vegan community or changing the business model made snap-deal zoom again.
Last but not the least, invest in human resources, a company’s best asset. They will be your anchor as you steer the Company into calmer waters. Keep those who serve the company’s needs and let go of the surplus etc. It's tough times, which means tough actions.
Also, know about the skills required for business in 2021