74 Five Business Crisis And How to Handle Them
So you started your own business. Congratulations. You feel that you’ve nailed all the aspects of your business that you need to get right, but disaster still strikes. Read on for some advice on how to handle some common business crises.
You are not making a profit
First of all, what do you do if you are not making a profit? Well if it’s in the first couple of years then it is not such an emergency. Remember it takes 2 to 3 years to get a business into profit. However if you’re not turning a profit after this time, you may need to look at your business processes. Are you charging enough for your product? Are you paying too much in wages or are your suppliers too costly? You will need to make cost reductions or price increases to make a profit. But remember this can affect how your customers view your product.
You get slated on social media.
With the rise of review sites, getting a negative review can be disastrous. Everybody can see where your company has failed. However, you can turn a situation like this to your advantage. Deal with the complaint promptly and professionally. Make sure that the client is happy with any fixes you offer. This demonstrates that you provide excellent customer service and will be addressing any issues they raised as you move forward. This restores your customers trust in your business.
You can’t retain staff
It can be a disaster if you have a quick turnover of staff. It can take ages to train people and even then they’re probably not running on hundred percent until they’ve been there for awhile. If you’re struggling to retain staff, you need to consider what you can do to improve this. It may be at the wages you are offering are not competitive. If you can’t afford to up wages, perhaps you could provide flexible working hours or a better benefits package with health care?
You get sued
Another massive business crisis is if someone decides to sue your company. They can sue your company as an individual or if there is a group of people that have similar complaints as a class action. If this is the case, you will need to urgently get some legal advice. Make sure it is from somebody that specializes in the type of case that is being put against you. Lawyers like Martin Chitwood can help advise you with a class action suit. You can minimize any damage from legal proceedings in by good legal help early on.
You go bankrupt
If you continue not to make a profit over an extended period, it is possible that you could go into insolvency. This is when your company becomes bankrupt and cannot honor the outstanding orders, wages, or bills that you have accrued. This is another situation where early legal advice is essential. Speak to a lawyer as soon as possible and do everything you can to honor the agreement you have made with your customers and staff.