How to turn around a struggling business
Assess your business plan to improve your business
Before you can make any change to your business, you need to identify where the problems are.
Look at your business plan and accounts. Where does reality not match up to what you anticipated? How long has the issue existed? Is it a temporary problem or something more longstanding?
Many businesses find it beneficial to use an accountant to work on their business' finances. A professional will be able to give you an insight into where your problems might be coming from.
Your cashflow is one of the most important aspects of your business. Without enough liquid assets to pay your bills, your business will fail. A cashflow forecast will give you a good idea of how much money you have coming in and out of the business, even to the extent of keeping track on a daily basis. See cashflow forecasts.
Once you have a good sense of what is happening in your business, you can make plans that put you back in control. You can also adjust your business plan, forecasts and budget and check that your proposals make sense. It may be necessary to reduce the amount you take out of the business until profitability and cashflow improves.
It is important to keep your business plan and other documents updated, and refer to them frequently, so you can see whether your changes are having a positive effect. If you decide you need financing, any investor will want to see your detailed evidence of plans to improve the business. You cannot expect an investor to commit funds if you do not convince them that your business has a reasonable chance of success.
For more information see write a business plan: step-by-step.