When things are running smoothly, it can be daunting to think about precautions you should take to prevent business failure. However, no matter the length of time that your business has been operating, it is vital to remain ahead of the curve. The right strategies can keep you from losing valuable capital in the long-run.
1. Restructure
Reducing costs, duplication, or turnover are all excellent reasons to alter your organization. If you operate a small business experiencing exponential growth in sales and need more manpower, restructuring your organization may be necessary. If you operate with many employees, you may see the need to reorganize your existing structure.
It’s wise to strategize with various department leads as well as your HR team to make the best decisions for your company. During this time, you and your team might eliminate roles, resulting in potential employee termination or promotions. You may also find that employees will voluntarily leave because they do not support the new changes.
Remain open and transparent with your teams across the company if you decide to restructure. Open communication with your employees will eliminate unnecessary office talk and keep rumors from spreading. Once the process is complete, create an easily accessible organizational chart so everyone knows where they stand. Whenever changes are made to a business’s structure, problems can arise. It’s best to be able to adapt and stay in front of it.
From the start, it’s essential to hire the right people with the necessary skills and place them in the correct roles so they can help you succeed.
2. Monitor Your Competition
Whether you are in a niche market with little competition or competing with new businesses in your industry, there is always a reason to keep a close eye on the market. Stay updated on what might impact your competitors.
Knowing these details can help you discover when it’s necessary to make changes within your business model.
Go outside of the typical search query and utilize tools such as Google alerts and Google trends. Google alerts allow you to place notifications on your competitors to stay on top of what they are up to. Set up Google alerts on your company to see if other companies are mentioning you in the online universe as well. Google trends can help you to stay on top of the latest trends in your industry, can be used for comparative keyword research, and can help you discover event-triggered spikes in keyword search volume.
Educate yourself as much as possible. You can do this by reading books and articles by industry leaders, listening to podcasts, or attending lectures or presentations. With deep knowledge of your industry, you’ll be well-equipped to handle problems that might come your way.
3. Network
You probably networked a lot when starting your business. However, it is essential to continue to build and establish a strong network of support from others. If you need a favor or advice, you'll have options when you have reliable people in your corner.
Continue to find ways to get your brand out there whether that be sponsoring a not-for-profit organization that aligns with your mission or creating an Instagram page to display new products or content. For more ways to effectively network, review these posts from the SmartBiz Small Business Blog:
4. Save
Most business owners do not set aside an emergency fund in case of an emergency or to take advantage of business opportunities.
Avoid sinking more money into the business than you can afford and keep an eye on your cash flow. The Small Business Trends Blog has an article to help you get started: 20 Secrets to Saving Emergency Funds for Your Business.
5. Seek Funding
If you are looking to expand your business, open a storefront, or increase inventory, it’s a great idea to explore an SBA Loan. SBA loans are known as the “gold standard” in small business funding due to low rates and long terms. You do need good credit to qualify for an SBA loan. If you need to establish better credit, opening up a second chance bank account can help you save and pay off past debts.
