We’ve all heard that more startups fail than succeed. Though no one wants to believe their startup could be one that eventually folds, unfortunately, the reality of being an entrepreneur is that sometimes your great idea just doesn’t perform well. But lacklustre sales or making early losses doesn’t necessarily mean that you need to pack up the office. Here are a few things you can do to salvage your company.
The most important first step when your business isn’t doing well is to take responsibility. Don’t blame market conditions or tight timelines – instead, own the mistakes that have been made, acknowledge what needs to be changed or what can be done to remedy the mistakes, and then get to work putting a new plan into motion.
Ask for Advice
When you realise your business is in trouble, instead of avoiding investors until you have positive news to share, set up a meeting with them and let them know what’s happening. These people believed in you and your idea, and don’t want you to fail – it’s likely they will have advice or ideas on how to get the company back on track.
But you don’t have to limit yourself to only seeking advice from your investors – turn to your mentors, close business contacts or trusted people in your network. Though too much advice can be overwhelming, having a few different opinions and ideas on how to correct your company’s problems will help give you a sense of what the possibilities are, and the best solutions for you and your business.
Sometimes, fixing things requires major change and if that’s what it takes to turn your company around, you need to be prepared to lead the charge. Whether it’s switching the marketing strategy, the product packaging, the target demographic or restructuring personnel, pinpoint what it is your company needs to do in order to thrive. Though it will be difficult, coming to terms with whatever it is that is sinking your ship and correcting the direction you’re headed is essential to save your company.
By acknowledging that there is a problem early on, seeking advice from your investors and trusted contacts, and enacting change, hopefully you’ll be able to keep your startup going.