Australia is home to more than 2 million actively trading businesses, with each one working hard every day to achieve growth, improve profitability and make themselves stand out in a competitive market. It's rarely easy to achieve those goals, and thousands of those businesses find themselves in financial trouble every year.
One thing that separates a struggling company from a successful one is how they choose to navigate those trouble spots. There are many methods to improve business performance, and making the right moves in times of crisis depends on seeking advice from experts when you need it. Planning a strategy to get your business back on solid ground often means taking proven measures to lower costs, improve productivity and reduce company debts.
That said, sometimes going against the grain can be an effective approach. When things get tough, it might be time to think about some less common ways your business can escape from financial difficulty.
Restructure your marketing for greater specificity
One of the biggest challenges businesses face is the ever-present competition in their particular corner of the market. Having a unique angle on a familiar product can be an incredibly valuable asset, one that can make your company stand out.
Let's take a look at an example. A recent survey from Roy Morgan Research asked Australian consumers about their alcohol buying habits, and specifically about the experience of shopping in their chosen bottle shop. Indulging in a few drinks with friends is a fundamental part of the national culture, and it would be fair to assume that our citizens would feel strongly about such a topic.
What Roy Morgan found, however, was that while there wasn't anything necessarily wrong with Australia's liquor stores, almost half of those surveyed felt that each outlet was essentially the same as the next. This stagnation of the bottle shop experience is a little discouraging for the industry, but suggests that customer experience is an untapped area of differentiation, and there are opportunities to build a greater customer base for those willing to branch out beyond the norm.
A struggling liquor store willing to take a chance could perhaps look for a way to restructure their business to develop a unique point of difference. In this example, moving from a generic model to something more specialised, such as craft beer, could be a way to offer a better customer experience, and potentially turn your fortunes around. After all, according to Deloitte research beer consumption overall in Australia is at its lowest level in 65 years, but sales of craft beer continue to grow at around five per cent each year.
Consider some disruptive action
Making further adjustments to your business model can be another way of salvaging a struggling company. When it comes to cost-cutting measures, perhaps just taking a look around your workplace can reveal some areas where savings can be made.
With the speed that technology develops nowadays, it's possible you aren't taking advantage of new developments that could be helping your bottom line. For example, research from CDW into the advent of cloud computing found that businesses who adopted these services reported significant savings in areas such as software management and licensing, IT labour and capital costs.
When it's time to make any significant changes in your company, whether to negotiate money problems and risks of insolvency or simply to improve operational performance, having the guidance of an expert can make a huge difference. As a small-business owner it can often feel like you have to cope with these challenges alone, but there are organisations ready to help you through difficult times.
Speak to Corporate Lifeline today, and see how we can help you to take your business into its next phase.
