When sales numbers and revenue decreases, a business may have to consider filing for bankruptcy. Alternative measures can be taken to prevent a bankruptcy, including selling assets or liquidating inventory. In some cases, restructuring your business is also an alternative. A restructuring expert, such as Suzzanne Uhland, can assist in devising a proper plan of action.
Re-branding is a way to reintroduce your business to local, national and global consumers. This can boost sales and save a business. This process does take some time. Creating a new, updated logo is a good starting point, along with a refreshed slogan or mission statement.
Bland, old or tired looking websites should go through a facelift as well. This makes the website more appealing to a bigger group of consumers. Once the new look is complete, republish the entire website. This helps the content seem as if it was just completed for release.
Restructuring the Business
Reconfiguring the way that your business operates both internally and externally can help turn losses into profits to keep a business going. Using social media analytics, you can see what age groups view your advertisements and which postings gain the most attention. It is important to interact with your audience as well. Responding to feedback in a positive manner is ideal.
Internally, promote teamwork and idea creation for both marketing, internal operations and how to generate new sales. The more your employees are involved, the stronger the team works as a whole to generate new sales.
In an external point of view, look at how your competition is advertising and communicating with the general public. Run an analysis of their marketing strategies versus their sales revenue and adopt practices from these ideas to use in your own business.
New Marketing Strategies
Marketing is essential for every business. Boring advertisements often make consumers get up for a bathroom break or change the channel for items shown on television stations. For social media and online marketing, run a few test advertisements to see which ones generate the most interest. This will tell you what your audience responds to and what they prefer to see.
Avoid loud, bright colors in your advertisements. This causes eyestrain and often turns consumers off to your business. Be direct, and brief. The attention span of the general public is far less than it used to be. Something needs to catch their eyes to make them want to do business with your company.
Hire a Financial Consultant
A financial consultant can take a look at the entire financial situation of the company from finding unnecessary expenditures to cutting costs to increase revenue. The consultant can go as far as structuring a strict spending plan that tells the company how and where to spend money to prevent bankruptcy.
Seek Out a Business Bankruptcy Attorney
If bankruptcy really is the only option, hire a bankruptcy attorney. The attorney can help work with you, your creditors and court systems to help prevent a bankruptcy. The attorney can also help the process be less harmful financially to the business by negotiating with creditors. A solution to the business’ problems to avoid bankruptcy may also be found.
Consider Out-of-Court Workouts
Out-of-Court workouts help a business prevent bankruptcy. The process allows either a mediator, attorney or business owner to work with creditors regarding payment plans and reducing the amounts owed. The workouts can also help a business liquidate the proper amount of inventory and/or services it has to lower overhead costs and expenditures to increase profits. The out-of-court options may help a business lower costs paid to creditors, vendors and service suppliers in order to continue to work with those entities in the long run.
Enter into Creditor Negotiations
Consider attempting to negotiate amounts owed to creditors to satisfy their demand for payment. In some cases, the creditor charges an inflated fee so that they can, in turn, make a profit. Lowering the creditor’s profit by a small amount will not hurt them financially in most cases.
Liquidation is one way of preventing bankruptcy. Selling off all of your inventory, plus the building and the equipment may be enough to satisfy your creditors and any courts that may be involved. In some cases, a liquidation of a portion of a business’ inventory to phase out certain products may be enough to ward off bankruptcy proceedings.
By liquidating assets and inventory, this does not say that you are giving up or have failed. It mainly means that a competitor has a better product that consumers prefer. The purchaser of the items may be able to pitch them to different audiences for successful sales.
By taking the necessary steps, business owners can prevent bankruptcy altogether. When there is no other alternative, there are still options to lessen the financial aspect of the entire process for the business. Before deciding to file for business bankruptcy, explore your options as the business’ owner. These measures may save your business and lead to growth instead of decline.