We all like to think that our ideas and business strategies are the best. Better thank those of our competitors. In many cases we may be correct, we certainly hope to be. Many of us however face a very difficult set of decisions when things are not going as originally planned. When is it time to make some strategic changes?
In this piece we hope to identify the reasons behind many such incidences and things which you can do to remedy these situations without losing huge revenue and ultimately hope to see a turnaround in fortunes for the business.
You’re not Always Right
This is the first and harshest lesson which many of us have to learn as entrepreneurs. It will inevitably come along in some shape or form. How we handle this moment can go a long way toward defining our business future. For many it is a baptism of fire which hopefully they can ride out. Some fine examples of this may be companies who have rebranded and reshaped their offerings over time. In this type of situation, think Google or YouTube. These are both iconic and world renowned brands today, however both struggled with any sense of identity and even profitability in the early years.
Change or Perish
When you are faced with a challenge there are often many options which boil down to a simple two. Change or don’t change. In almost all cases, the reason for a decile has some driving factor. There is some intrinsic problem with the business. This is almost always only solvable by implementing a wholesale change. Those who refuse to move with the times or as the market signals guide them, face almost certain destruction. There are so many cases of this, we can look at the likes of Nokia as being a prime example of a company not modernizing fast enough to keep up with the changing market.
If you notice a downturn in business, of course you will naturally be concerned. However, before you go selling up house and home to fix things, take a moment to consider the bigger picture. Falling revenue is never something we like to see, but remember, many businesses are cyclical. This means that they will naturally have busier periods than others. For retail, that may mean doing huge swathes of business over the Christmas period whilst in the fitness industry it may be quite the opposite, with the key market uptake in the winter months of January as those New Year’s resolutions kick in.
As we can see, it is important to think carefully before making any wholesale changes and to understand the natural cycle of the business. Your reduced revenue may be very well typical of every business in that industry. On the other hand it is also vital that you pull the trigger and execute when the time is right to avoid bigger problems. The key attribute you should possess is instinctive decision making.