Businesses can decline over the years until they no longer have enough working capital to maintain their current course of action. Without drastic change, the business will either be sold or liquidated in bankruptcy court. Change requires a new way of thinking about things, taking risks and making better strategic choices that lead to higher outcomes.
Organizations operate on processes & procedures. The culture of an organization will determine its overall communication and work patterns. When processes & procedures and culture are aligned to market needs it becomes more likely that the business will be able to pull out of its current predicament.
Consider a company that produces a single product that once brought in a lot of money but over the years alternative products have been developed by competitors that are eating away at a shrinking market. Continuing to do the same thing over and over without adjusting course is likely to end in a complete disaster.
Companies usually wait too long to make changes like many of us wait too long to adjust a bad habit. It is a human problem that we avoid change until it is necessary. By being proactive and watching for trends and opportunities it is possible to make smaller and easier to handle changes to keep a company focused on market relevancy.
If your company’s market is dwindling, competition is increasing, and your adjustment capital is dwindling consider a few helpful hints in developing a more sustainable business. Bounce your business off the bottom by answering a few questions…
1. Are you in the right market? Take a hard look at your capacities and market need to ensure your business is still relevant.
2. Are your processes & procedures focused on outcomes? Adjusting processes & procedures can create better outcomes, at lower cost, and more efficiency.
3. Do you have the right people? Ensure you have the right intellectual and skilled capital to transform your company.
4. Are there new markets? It is a global world out there. Companies can open up new markets and reach more customers.
5. Are you giving your customers what they want? Make sure that your business is focused on what the customers need and want.
6. Can you find more value? Take a look at your products/services and see if you can enhance their value.
7. Should you diversify? There are times when it is necessary to add new products and services to ensure that you are not overcapitalized into a single risk.
8. Should you Collaborate? Your product/service might match well with another product/service from another company that can raise the value of both.