A business that is in trouble is a lot of trouble, but it can also be the best opportunity for exponential profitability. With the risk-reward ratio usually in your favor, it can be very tempting to take on the challenge! Here is how to buy a business in trouble and turn it around, step by step.
What are the pain points of the business? Why is it in the hole in the first place? There is the story that the management and employees and the customers will tell, and then there is the truth. You will need to survey all of the salient factors in order to find out what actually happened so you can fix it. This means going through the books, reading customer reviews, interviewing employees, and learning local regulations. You should probably get a professional for each of these sections so you don’t miss any of the most important points.
What is the new path for the business? Is it the same as the old business with a few new twists, or are you changing everything including the logo and the font on the front door? You need to know how much things are going to change and exactly what you want to change. Having a focus and a vision is the most important thing you can do after you find your pain points.
Now that you have your vision free and clear, you want to start building! But what do you start building first, and what do you leave until after the business opens again and you have revenue streams that you can depend on? This is a question for professional business brokers as well as your internal team. There are pricing concerns, assuming that you are on a budget, as well as keeping to the plan described above.
Good help is so hard to find these days, or so they say. Actually, if you have a vision, getting the right employees and independent contractors becomes a much easier job. Usually, you can pool some of the old employees to get your experienced senior class, and you can get your newer, front line workers from a new pool of individuals to bring new energy to the building. Newer workers may also be more malleable to a new philosophy, which will allow the business to pivot with more agility in less time.
If you are looking for the right professional partner to help you rebuild your business, then you should give the dedicated experts at Murphy Business a call. Murphy Business has been helping businesses pivot for decades in your local area. Give us a call for your business at (727) 725-7090 or just fill out the easy to use form that is directly on our website. We are waiting to help you rebuild your business in the best way so that you can create the product or service that you have been dreaming of!