Business revival strategies is something important yet not many startups understand. Imagine you have serious problem: zero capital, empty cash. Merchandise is almost sold out. Mountainous debt. The employees are sluggish. Insults and curses abound. Add to that the threat of confiscation from creditor banks. Also threats to take by force from private lenders. Oh, there’s more: the rent for the place of business runs out next year. In short, we are being the target of disappointment and hatred. Bankruptcy is literally in sight! Is there still hope? Is it possible to rise again?
Don’t be afraid, there is a solution. The following is a great experience when a businessman was down and broke. Then he was given the mandate to manage a business that was almost bankrupt. He was chosen because no one else dared to take such a high risk. He received this opportunity to revive the business of a family that had almost died and at the same time to put his achievements in order so that he could rise again as before. Here’s unconventional business revival strategies.
DON’T PANIC. The first lesson in dealing with big problems from the start is not to panic. If you don’t want to be more tapered and more complicated. Here’s the scenario: A family member called and asked him to help his company, which was in a precarious situation. A family business in the form of a building shop with the highest revenue of around US$ 300,000 a year. He has no experience in this line of business but he knows general company management. And he understands the principles of leadership in running a business. Even though the atmosphere was so gloomy and tense, he tried to appear calm. It’s as if the company doesn’t have any serious problems (even though in his heart battle, asking for forgiveness, how come he was given an impromptu mandate when the apocalypse is near.
EMPLOYEE MORAL IS PARAMOUNT. The second lesson for business revival strategies is to pay attention to improve the morals of employees. When he noticed that all employees were demoralized, he reassured them that next month everything would be all right. In fact, he took the initiative to increase their fees by 20% without prior permission from the company owner just to avoid a long debate while the owner was only interested in securing his assets. At the same time, he has to enforce administrative order, discipline employees and control the behavior of the owner’s family who are used to intervening in company affairs. Later the owner and the family were angry with him for the initiative to increase the salary, and it subsided on its own 3 months later after the business made progress.
OPTIMISM IS HALF OF THE JOURNEY. The third lesson is to stick to an optimistic attitude. It works. That’s half the success story. Throw away pessimism that is raging in the mind immediately and forget it. Whatever happens, assume that permanent bankruptcy is just a bluff from jealous enemies. To neutralize panic and anxiety, he invites employees to relax during breaks and after working hours. For example, playing chess together, playing cards, playing guitar a lot, playing music, making jokes with humor that makes you laugh out loud.
FIND OUT THE WEAKEST AND MOST DAMAGING SPOT. The fourth lesson is to examine the root cause of business collapse. There, what he found was that the financial control was in disarray with basic mistakes. This is a common disease of small and medium-sized businesses: Good at selling yet awful at managing money. Many outflow cash without clarity. A lot of the use of money and goods for personal affairs is not recorded. Many personal debts are forgotten. Many accounts receivable is left uncollected. Unfortunately, this is typical of a family business, the employees on duty do not have the authority to carry out enforcement because of the strong dominance of the owner and the family.
It was from these weak points that he carried out massive enforcement indiscriminately. Even for a cash receipt of $5, the owner must sign the Cash Disbursement paper. Thankfully, the panicked owner was willing to hand over all the store’s policies and operations to him as long as the business was safe. It simply because this is a life-and-death affair for the owner family where they rely heavily on the business for their daily needs.
Bankruptcy here can mean the death of almost all members of the family. Incidentally, at that time, the impact of the monetary crisis was still severe, which resulted in many members of the family going out of business. This shop is the last goal! The panic of the owner’s family was also triggered by rumors that several similar businesses were going out of business even though they had very strong capital. Now what he’s dealing with is zero capital: the amount of stock of goods is equal to the amount of accounts payable, cash is almost empty, receivables are almost all jammed.
