Guidelines and Trickeries to Turning around a Struggling Business

Could it be that you're taking over a company that's failing or creating a fresh start in your own business? Whatever the case may be, just know that turning around a struggling company takes a lot of work and commitment.

Where should you start making changes? Which tasks need to be prioritized to make the most impact? And how can you keep customers happy during the process?

Fyne Market met with two CEOs who are in the game of turning around struggling businesses to get their best tips.

Be honest about what is holding you back.

Evaluate the situation, pinpoint exactly what's holding you back," said Wilson Guru. As the founder and CEO of Aclan Multimedia, Wilson works with photographers and Fashion designers who are struggling to grow their careers or make a profit. "Getting to the root of the problem is critical.

The results you are dealing with may be apparent, such as difficulty attracting new customers or not making enough of a profit. But these aren't where the actual problems are happening. If you aren't attracting new customers, you really have a marketing problem. If you are not making enough of a profit, you probably need to cut down on expenses.

Uche Flick became the CEO of MatIce franchise Restaurants when it was bought by Kada Fries leading restaurants in Nigeria. "Consumers loved the brand, loved the classes," said Flick. "But when we looked at the operations, the build-out, the return on investment for those franchises, it just wasn't enviable.

As CEO, Flick’s job was to ascertain unerringly what made that return on investment so obscure. He discovered that the company had grown too fast without creating a sustainable blueprint for new franchises. "When we acquired the company, there were about 40 locations around Nigeria," he said. "The operating systems weren't in place for that type of growth.

However, Flick and Wilson stressed the need to find the root of your business's struggles before making any changes. "Identifying exactly what is holding you back allow you to create a plan and allocate your time, people and money where they will have the biggest impact in the shortest amount of time," supposed Wilson.

Look for ways to simplify.

Cutting costs and improving efficiency is a major step toward becoming profitable again for many businesses. Begin by observing the organizations and decisions you already have in place. Instead of taking for granted that things must be the same, come out with ways to simplify operations without losing quality. "We didn't want to lose the premium feel," said Flick of assessing his franchises. So he and his team came up with ways to make small but meaningful changes that customers wouldn't notice.

Changes like sourcing fresh food items from the local market, and growing vegetables, saved franchisees money and make simple the process of opening new locations.

Simplifying can also mean taking care of things in-house that you have been outsourcing, or outsourcing tasks that take up too much valuable time. "It is advisable you delegate, suggested Aclan. Aim to strike the best possible balance between quality, cost and efficiency.

Embrace your strengths.

Aclan recommends that clients should solve their problems by focusing on the strengths they already have. "That is, identify what resources are available such as tools, people, and education and also identify likely areas where growth is promising,". It is an established fact that "You can't do everything at once, therefore, you have to identify tactics you are good at by using the resources you have, not just ideas." Said Aclan.

Your team members, for instance, may perhaps have the know-how or skills you can tap into before you bring in a paid consultant. Heartening your loyal customers to refer their friends and family may be faster and more effective than investing in expensive new marketing software if you need to spread the word about your business.

Sometimes you may find that an outside opinion, new purchase or system overhaul is necessary to solve a problem. But the many times, the resources you already have available can provide at least the beginning of a plan.

In his final remark, Aclan said that "Innovative solutions entail a bit of ingenuity at times, but every single situation comes with likely solutions.

Make it easy for your customers.

Many businesses struggle because they have accidentally made it difficult for customers to use their services. Systems that make your work easier may actually require your customer to do too much on their end.

When Flick examined how MatIce managed sales and marketing, he discovered that the lack of face-to-face contact created barriers for customers who wanted to buy classes.

By not having someone available in person, MatIce was asking customers to take extra steps, rather than making it easy for them to find out information or make a purchase. By making things easier for customers will result in an immediate increase in revenue.

Remember your why

Though turning things around may require big changes, don't lose sight of the fundamental of your business. The values of your business and the way you make customers feel should stay the same, no matter what you choose to simplify or improve.

Focusing on the core of your business and the customers you want to serve will not only guide your decisions. It will also motivate you to keep going, even if more challenges come up.

Put pen to paper and write down your why," Aclan advised. "Think about why you began this company and what's inspiring you. If you write it down and keep it somewhere visible, it will be a good reminder when things get tough."