If your small business is in trouble, you cannot simply spend your way out of it. You'll need to restructure.
To restructure your business, you'll need clear direction, the resources to manage the change, and the willpower to implement it.
Control your cash flow. Controlling your cash flow is like ensuring that blood flows through your veins – it is vital for your small business' survival. Postpone or cancel all non-essential expenses. For example, if you usually buy office supplies months in advance, try buying them little by little. Similarly, most office supplies can be recycled, such as paper, paper clips and post-it notes.
Get a grip on your credit customers. Make sure they pay all outstanding invoices as soon as possible. Offer them a one or two percent discount if they pay up before the due date.
- Control your employees. Talk to your employees and explain the situation in a frank and tactful way. Tell
them to improve in whatever way they can, so as to contribute in way of increased sales. Tell your slow-moving and unmotivated employees to either buck up or buck out.
- Control your suppliers. Explain the situation to your trusted suppliers. Ask for an extension of credit from them. Start paying them in installments so that they do not panic and stop sending supplies to you completely.
- Control your emotions. By all means, do not panic. Keep a calm and composed posture so that your employees, suppliers and customers keep their confidence in you and the business.
Simply put, to restructure your business, you need a proper plan that has to be implemented and monitored on a regular basis so that you will know exactly where you stand. ‘Control' over the various departments of your business is the key to restructuring your business successfully.