How to do a business survival plan
To lead a company, it is essential to have a detailed business plan. It will help you to avoid huge losses and take up some measures or may be even change strategy to help your company to survive and boost your sales.
Small business has its own specific, company growth can change quickly, so you must track its progress and have a constant control over it. Sometimes even a big growth can change drastically and turn to regression. But, luckily, survival plan can be a solution.
In this article I want to share with you my tips on survival business plan.
1. Current profit-and-loss statement and cash flow analysis are fundamental
You must have a clear and full understanding of current business key numbers. Without it you cannot chose a strategy or make a planning. Be sure to collect and have all accurate and relevant data from all departments.
2. Determine the next steps to be done
According current situation you must have a strategy for different time period
- Short-term strategy (1-6 months)
If your company have losses, first, you need to think about short-term strategy – how to come back to breakeven point. Make some necessary cuts, revise all contracts, offer to your clients pre-paid contracts to have certain cash-flow.
- Medium term strategy (6-18 months)
After returning your company to a breakeven point the next thing you must think about is how to return the profit. Some cost-cutting methods and adopting new marketing initiatives can be a solution in this case. In worse scenario you can continue with the breakeven strategy.
- Long- term strategy (18 months onward)
To return your business profitable you should invest in novel strategies or even to establish an advisory board – group of professional, entrepreneurs, people with enough experience to see, forecast and predict the business growth. They usually can see it from other angle and advice successful strategies and solutions. Then the trick is to stick to the plan and avoid spending money when everything goes well;
Have you ever experienced cash flow problems or any losses in your business? What do you think is the best way to prevent it? If you have your question, please write it below, I would be glad to answer your questions or to introduce your project to my team at Astorts Group to be evaluated.