You are trying to do everything to save your business but it just is not working, HELP! Look at me. Calm down. All is not lost . What if I told you that you can turn it all around? It’s time for another episode of MoneyMovesJa brought to you in partnership with EXIM Bank’s Business Advisory Service, giving you the tools to grow your business. Joining me now to discuss how you can turn your business around we have Director of Sisters Ink Ja Limited, Opal Levy.
Several ways to help turn a failing business around
At least one-third of all businesses are prone to fail within the second year of establishment if the right growth factors aren’t in place. That’s according to Director of Sisters Ink Ja, Opal Levy.
Speaking on #MoneyMovesJa with Kaliah Reynolds, Levy noted that low sales and a lack of understanding towards customers are among the many contributors for businesses failing. She said more often than not, businesses fail to plan and sometimes try to solve a problem that didn’t even exist.
She said it’s important for entrepreneurs to talk to potential customers from the onset of the business idea. She said reading will also be critical in this changing environment, to ensure the business will be positioned to the right persons in the right time and space.
“The core of every single business is for you to solve a problem. So if you’re in business and saving a problem that the customer does not have, you’re going to have a problem because the customer does not see it as a problem,” she said.
Levy said once the business owner has an idea as to how much revenue they want to make for a particular period, they should ensure that customers are at the centre of discussions.
This she said will ensure that the company can pivot should there be any changes in the market including consumer tastes.
“You can’t mimic another company. If you’re going to be coming to the market with a new product [or service], you have to then have a good understanding of what the customer wants and how you’re going to solve that problem,” she stressed.
Should the business run into trouble, Levy said it would be wise to conduct research to ascertain if the company was solving the right problem.
She advised that the company would also need to look at spending habits. That she argued includes looking if monies are being spent in the wrong places or if the company funds are being channeled for personal use.
“That’s a significant problem that we have with small businesses. People say ok my salary is x amount per month and that is what I take but they keep taking money from the company without ploughing back money into the company and as such you have a problem,” she said.
Additionally, Levy said companies should be more aware of the types of loan facilities being used as the wrong one can also create a negative impact.
“Don’t just go to the bank and say I need some money and take out a loan…whether you take out an operating line, a credit card or a term loan, all of those are different types of structures and they operate differently,” she said.
She also cautioned against the misuse of social media noting that jumping on these platforms without first having a good understanding of the target market can also lead to the company going down under.
She recommended first doing a strategic plan, including a swot analysis, to determine how exactly to communicate with potential customers.
According to her, consumers go on social media to look for particular things, which dispels the thought that everyone will be reached once those platforms are used.
“Match your strengths with your opportunities and threats and do the same with your weaknesses and then you come up with marketing objectives to see how it is you’re going to go into the market and how you’re going to be communicating with the market,” she said.
