It’s not unusual for new business ventures to fail within the first five years; however, there are usually some signals that give warning – slow growth, poor cash flow, or lack of innovation. If you sense your new business beginning a downward spiral, it’s time to try something new. Here are some ideas to jumpstart your business.
Take Your Business in a Different Direction
Changing the direction of your business offers a fresh start. While it may be harder than it sounds, this move offers the opportunity to regain traction and get your business growing again. For some business owners, that means a complete overhauling of the business model. For others, it may mean developing a new product or marketing to a new target audience.
Rebrand Your Business
Though it’s not the first step a failing business should take, rebranding may be a viable option. If your sales are declining, it may be time to reinvent your business. Rebranding doesn’t mean simply changing your logo. You’ll need to give a lot of thought to marketing as well as how you appear to the public. You’ll likely need to overhaul your entire business plan and even find a new niche in the market.
Choose a Niche and Focus on Your Clientele
Sometimes businesses fail because their target audience is too broad. Do you know who would benefit most from your product or service? Can you narrow that niche down even more? When you market to everyone, you really market to nobody. It’s safe to say that most new business ventures don’t have the time and resources to invest in several markets. It’s much better to zero in on a smaller niche first. Then, when your new business is successful and has some extra cash flow, you can gradually broaden out.
Implement a New Marketing Plan
Take a good close look at your current marketing strategies. Are you utilizing social media? What about your company website? Is it optimized and able to bring new customers to you on a regular basis? It may be time to analyze your marketing base. Is it too broad? Are you trying to reach too many people? If your business is failing, it’s time to reevaluate these questions. Since your current plan isn’t working well, it’s time to reinvent the marketing plan. A new marketing strategy can breathe life back into a dying business.
Don’t be Afraid to Take Risks
Many business owners prefer to play things safe, especially during crisis situations. It’s easier to find comfort in doing things the “normal” way. But this “normal” way is probably at the heart of your business failure. Instead, crisis situations require risky ventures! Take some risks – make a bold, calculated move. It may be the saving grace of your dying business venture.
It’s hard to admit that your business is failing. But when sales drop, and expenses rise, it’s certainly time to reevaluate things. Take a close look at your business plan and your marketing plan. Perhaps the product or service that you offer needs to change. Don’t be afraid to make some big changes. It’s much better to make the change than to continue to watch your new business steadily decline.