How Do You Respond When These Five Things Fail in Business?

How Do You Respond When These Five Things Fail in Business?

When things go wrong in business it can be extremely worrying- especially if your business is your main or only source of income. Chances are you’ve put your life into making it work, borrowing thousands to get off the ground and even pouring in your own life savings. Here are some things that can go wrong, and how to respond to them.

Sales have slowed down

As business owners we’re all aware of the peaks and troughs that occur in sales and profits throughout the year. However, if things slow down and stay slow, it can be a cause for concern. A change in the economy or in the wider world might have meant that there’s less demand for your business, or a competitor has made your venture obsolete. It could just be a temporary blip, but sometimes it’s difficult to know whether you should hold out for things to pick up while you’re haemorraging money. Work on your marketing methods to try and generate interest, read your reviews and do you research to try and pinpoint the reason why things have slowed down. Sometimes things will be in your control to change, others wont.

There has been damage to your premises

This could be a result of a fire, flood or natural disaster. It could be a burst pipe, an arson attack or constant grafitti and broken windows. Some businesses that are located within certain city locations can have an issue with homelessness, or even partygoers urinating near their premises. There are always going to be costs for these kinds of things, whether it’s to completely refit your premises, add security or put systems in place to keep it safe out of hours. It’s important to always have the right insurances for extreme damage, and have money in your budget to resolve other

You’ve been targeted by fraudsters

There are a number of ways that fraud can occur within your business. The first is by criminals stealing your data, they might break into your office and steal files or they could hack your computers. Another way is if someone within your own team steals money or information from you- you can never be too careful. Always install good windows, doors, locks, CCTV and a burglar alarm to keep the bad guys out of your premises. And vet your workers carefully, running background checks. It can help to have a reporting system in place, where other staff memebers can anonymously report anything that’s out of the ordinary. This can alert you to any suspiciouns and allow you to look into it. Upgrade your data storage methods, if you use cloud based servers for example everything is secure and encrypted. Even if your hard drives or computers are stolen from your premises, there will be no data on them to be taken and used by criminals.

Someone has become injured as a result of your business

Businesses are generally made up of lots of departments and there are all kinds of people that come in contact with your company. From your office staff to sales people, manufacturing workers, delivery and then your customers. An injury could be anything from health and safety neglect in your factory, to a product not functioning properly and hurting a customer. Always have the right insurances in place, you need employee and customer liability insurance so you dont end up out of pocket in case the worst happens and someone makes a claim. Be sure to follow health and safety to the letter, and regularly check up to ensure things are being done to the best standard. Even something as simple as forgetting to put down a wet floor sign can be disastrous if someone slips and hurts themselves. If a claim is made against you it could cost you your reputation in business or even result in you be disqualified as a directior. If this happens to you, be sure to seek legal advice from director disqualification solicitors.

You’ve had to declare bankrupt

Often, it’s a combination of things that result in a company going bankrupt. Overspending, poor marketing methods, failure to adapt and not enough market research can all be factors. It’s difficult if this is your first venture, often you need to make the mistakes to be able to learn from them. This is the reason why many successful business people have failed companies in their past. Do all you can to avoid bankruptcy, keep your risks low and be careful with money. Seek advice when needed, but know when to cut your losses too. Keeping open a failing business which shows no signs of picking up will run you further and further into debt.

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