Turnaround Business is Normal Business

It is a well-known fact that most startups fail, and some sources claim that up to 95% of new startups fail within 5 years. However, even those businesses that survive the first five years must make sure to not relax their standards or become complacent. Small business owners must keep their focus on maintaining ROI, efficiency, and cash flow as well as adapt to the ever-changing competitive environment. If business performance begins to slip, these businesses may quickly find themselves in a turnaround situation that requires adjustments to how they operate. In fact, a turnaround mentality may just be the best ongoing strategy to increase the odds of business survival.

Think Long-Term

Turnaround plans may provide tangible quick results but diligent effort must continue toward improving business performance. The term to always keep in mind is “Kaizen” which is Japanese for continuous improvement. It is an easy trap to see quick results and fall back on the bad habits or assumptions that caused poor performance to begin with.

 

Question Everything

Every assumption and operating tenet should be reviewed with an eye to improving performance. Many businesses owners and their staff make the mistake of relying on “that’s how we’ve always done it”. What may have worked in the past may not be working now.

Be Realistic

Many business owners look for a “silver bullet”, or a single tactical or strategic change that will turn their business around. While there are rare examples of such things happening, truly high performing businesses work to improve every facet of their operation.

Mind the Data

It is easy for panic or desperation to take hold when a business is in turnaround mode. The danger with this mindset is that it often leads to instinct-based decision making. While your “gut” is something to always listen to, don’t forget to check the data to ensure it supports your decisions.

Repeat what works

The business fundamentals of successful businesses are the same ones that help a business turn itself around and become successful once again. If it works, then why not keep doing it? These days, turnaround business mode is just normal business.

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