Business Coach Firm

I am always amazed at how much information there is on the internet about doubling or tripling your business. “Just try my system and sales will go through the roof!,” these sites promise. If these messages are true, then why are so many businesses failing? The truth is that no single system works. Sure, a certain approach might bring in more business; however, doubling business could destroy a struggling small enterprise. People are looking for a secret to help them get ahead. Just look at the bestseller’s list. One of the most popular books out on the market today is named, what else, The Secret. There is no secret! There is only education, trial, error and hard work.

Before you get mad at me, consider the following. Sales are only one component of any successful business. Even if there was such a thing as a secret formula that once mastered would increase your sales by 500%, who would fill the orders? How would you ship it, stock it, pay for it, improve production, systems, storage, or functionality? How would you maintain quality control? These questions are even more complicated to answer if the business you are trying to build is already in crisis.

By definition, a business in crisis is one that is losing money or barely breaking even each month. A crisis can happen to any business at any time. True, crises are more prevalent in new companies, but history is filled with examples of large successful businesses that rapidly entered the crisis stage when fuel prices surged or technology changed. The potential for crisis exists in any type of business, regardless of its size. Unfortunately, if you are the owner of a small, independent company you often lack the resources to correct or react to such changes. This is why understanding how to survive a crisis is so important.

Surviving a crisis requires careful Crisis Management (CM). The Crisis Management phase begins when you consciously decide to address the real issues in your company and stop looking for the popular quick fix solution. In other words it begins when you stop “sleepwalking” and become determined to address the issues head on.

The first step toward effective Crisis Management is taking responsibility. Yes, you are responsible. Even if an asteroid was to hit your building, demolishing your enterprise, you share responsibility. Why? Your responsibility is in creating a well planned strategy to deal with this type of outcome. I am not trying to be facetious here. You are responsible, period. What are you prepared to do about it? In my book Small Business Pain I outline the basic steps to take in order to manage crisis in your business. The process involves getting emotional (Angry), because anger lessens fear and gives you the strength to carry on. It also requires getting organized and reviewing the financial state of the business. Most CM companies are in denial and live with unrealistic projections and assumptions. Facing the truth as it really is represents a painful, yet necessary, step along the journey to recovery.

Rushing out for new business is seldom a wise idea if your company is bleeding cash. It is better to look at your existing client base and find ways to add more value to them. When working through a crisis management situation within an enterprise, I often have to remind the owners to stop looking outside for solutions–there is nothing out there! The answer, no matter how painful, is always right before you. Are you drawing too much money out of the business? Are you trapped with relationships that have weakened your ability to adapt and grow? Have you become a “Nice Guy” to the detriment of the enterprise? Are you allowing people to withhold payments because you empathize with their issues? There are a thousand possible reasons why your business is might be suffering. One response is universal–the road to recovery begins with looking in the mirror.