How To Plug The Holes Of Your Sinking Ship

Business is never easy. Even when things are going just swimmingly, there are an array of reasons that things can go wrong, from internal decision-making to obscure external factors suddenly shifting the ground under your feet. It could be that you implemented a flawed strategy, hired an incompetent manager, or a political decision changed the game entirely, one that saw you suddenly having to play defensively.

That is when you are going to need to know what it is you can do to save your company from going under.

Act Fast But Not Foolishly

More often than not, when a business finds itself on the back foot and fighting for survival, the people in charge find themselves making changes that focus on the short-term and not the long-term. According to, a lot of people state reasons to themselves that make them believe this is right too, such as, “If we don’t do this then there will be no long-term.” That’s why it is absolutely imperative you don’t panic. It may seem like a good idea to axe this vendor or reduce the quality of a certain product, but this short-term approach will hurt you a lot more than you realize.

Understand Where You Can Cut Costs

Revenue is going to become more and more crucial in your battle survival, which is why it is imperative to think clearly about how you can cut your costs and overheads. At the more drastic end of the scale, it could mean that you leave your offices temporarily and see what a company like can offer you by way of storage. However, it could just be that you stop using external contractors and agencies until you can afford to at a later date. Of course, it is important you don’t let emotion take over, as this will prevent you from thinking clearly and could see you make bad business decisions that turn out to cost you more.

Never Bury Your Head

When facing the need to turn a business around, your biggest ally is realism. You need to know the facts and the severity of the situation in order to properly manage it. That means being realistic about timelines or time pressures, financial projections and income, and any help you can realistically call on. If you are not realistic about absolutely everything then your strategy is doomed to fail. Now is not the time for perceptions or pride, it is about survival, and that requires the truth. Once you know exactly what the situation is, then you can start to plan properly. This may mean having to make cuts to the payroll, utility, reorganizing certain delivery timetables, talking to creditors and investors, all of which will be difficult. But it will be impossible to make these judgment calls based on speculation and guesswork. What’s more, it could be illegal and negligent if you do not present the facts to those that have a need to know them, which could see you end up in far more trouble than you bargained for.

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