How to Save a Struggling, Dying Business: Tips, Advice and Government Help
June 1, 2011 One Comment
How to Save a Struggling Businesses
- Life is all about risk and return. The more risk you take, the more chances to grow. Similarly in business, risk is an inevitable factor. Business works with many factors affecting to it. Every factor can not be favorable all the time.
- Struggling may become a difficult task for a manager in tough times. Business has to struggle due to many unfavorable factors and situations. Financial crisis, lack of marketing ability, lack of technological advancement, fierce competition, feeble ideas, lack of innovation, government pressure, unfavorable legal terms and conditions, political reasons etc. can make a business struggle hard.
Tips and Advice for a Business that is Dying
- But positive attitude counts a lot in such situation. You just need to survive in this tough time and fight back to the situation. Though it is not easy to fight against the situation and struggle, with smart work and hard work it is possible to beat any difficult situation.
- It hardly happens that you are thrown out from the market. But if that is the situation, play smart and try hard to just survive for a short period of time. Once you are able to survive in the market, there are many ways to boost back in the market. In the initial stage of struggle, you don’t need to think about the profits. Just concentrate on breakeven. If your income is enough to cover the costs and operating capital, it is enough for the initial stage.
- Then the analysis stage comes. You need to analyze the market and the entire situation. What were the factors which caused you struggle. Prepare a SWOT analysis of your self and business entity. What are the threats for your business, what opportunities are available in future, what your strengths are and what your weaknesses are?
- Develop a strong team to fight in the competition.
- As far as financial problems are concerned, there are many sources that help such sick units in difficult times. There are many banks providing loans especially for the revival of business. There are many NGOs providing financial and management help to such struggling units.
How to Get Government Help for your Struggling Business
- Government is always active to save struggling business units from falling down. They have their certain criteria which define some business units as sick units. If your business comes under those criteria, you can get governmental help easily. You just need to file an application to the respective authorities for business revival loan and comply with the documentation requirements.
- You can visit the nationalized government managed bank and inquire about the same. If there any scheme going on by the government, they will inform you. Then collect the forms and submit the same with necessary statements and documents. Every year, in annual budget, government declares some amount for the revival of such sick units.