Plans to keep businesses going

June 20, 2014 by Ife Adedapo

   

 

An ailing business can be saved by right interventions. IFE ADEDAPO writes on appropriate steps that should be taken in such a situation

Consultants have noticed that some business managers may not know the reason why their businesses are not yielding the right dividends. Apparently, they seem to have resigned themselves to fate and think other players may have already known that they are no longer competitive and will do everything possible to keep it that way. Definitely, there are telltale signs that a particular venture is gradually dying but managers hardly pay attention to them.

Have you been able to identify the reason for the unexpected drop in sales or the sudden withdrawal of your loyal clients? Experts have suggested that businesses may need to make structural changes to ensure the marketplace values what they sell.

The world is evolving with technological changes which every business needs to adopt for them to remain relevant.

Experts say the business may not be sustainable if the owners don’t learn new ways of running it. Although, change may not be easy, they are highly necessary.

Some business advisers even recommend that business owners should reconsider the capability of their workforce. According to them, the relationship between their employees and clients, when strained, can affect the profit margin of the venture.

Your clients are the main reason why you are still in business; they are an important part of your investment and so it is essential to always keep them in mind in everything you do.

Experts say many people are in the habit of starting a business and not maintaining it up to a level where they can sit back and watch the next generation take control of it.

To achieve the much-desired business continuity, the Managing Director of Brightside Computer Services, Mr. Moshood Adewale, highlights ways of keeping the venture going.

Consult a business adviser

Business consultants have discovered that the problems encountered vary for different businesses, therefore for the best solutions; they recommend that an efficient business adviser will direct business managers to the appropriate tactics to use to ensure their businesses remain relevant.

They say business advisers are professionals, who are capable of identifying the mistakes made and give advice on the course of action to take in order to remedy the situation. They say advisers also play a major role in identifying loopholes where the finances have been draining; they ensure that the money is channeled in the right direction and also give advice on ways of reducing operational cost as well as totally bringing the business back on track.

Adewale says, “An efficient business adviser will proffer solution in some areas where the business owner is having challenges because one man cannot think alone but working together with someone else will yield better result.”

Guard against fraud

In order to guard against fraud, experts say business owners must block all sources of fraud especially from their employees because employees may be compromising and may be looking for other avenues of making more money. According to them, common types of business fraud include asset theft and accounting frauds.

They say some employees may be in the habit of not documenting certain expenses or taking cash payments instead of bank draft or cheque.

According to them, this is a common occurrence among small business owners who do not monitor their employee’s activities because they trust them or they don’t pay attention to details. Experts advise that when there are signs of insolvency, business managers need to review and monitor their accounts regularly, noting that delegating this to another person will not yield the right results.

They say when the business owner discovers that the business is dying, certain measures should be put in place. He or she should try as much as possible to block all loopholes of financial misappropriation by auditing the account constantly and putting checks in place to monitor the employee’s activities.

Partner with other people

Adewale says as soon as a sole proprietor discovers that his business is about to crash, he or she can look for other people to partner with and in the process using their financial base to put their own business back on track.

He says, “A partnership can also serve as an incentive to attract creative employees who will assist with proper management of the business.

Insure your business

There are unforeseen circumstances which can totally cripple business activities, but with the right insurance policy, professionals say the situation can be managed the appropriate way. Moreover, they say every business is associated with one risk or the other; therefore, when there are problems with finances, insuring the company will ensure that there’s something to fall back on. The best way to obtain protection is to get adequate insurance in case of sudden crisis. They advise that a qualified insurance agent should be consulted for the type of coverage the business need.

Find revenue streams for slow times

According to a freelance online writer, Gwen Moran on www.entrepreneur.com, some businesses make up for income fluctuations by finding new revenue streams or complementary business lines.

For example, landscaping companies often handle property maintenance, plow snow, and install extensive holiday decorations in different climates. Eateries that close after tourist season may offer catering or other food services. Seasonal product manufacturers may expand their lines or create holiday-specific products that can be marketed throughout the year.

Such expansion can help you keep employees busy and retain your best talent. But think carefully before investing in a new line of business.