Publisher's Synopsis
This essay sheds light on how to save a declining business and elucidates the top business recovery strategies to turn a company profitable. Moreover, the importance of operating a business cost-effectively is delineated in this essay. In spite of the seemingly insurmountable challenge of turning around an unprofitable business, salvaging a declining business on the cusp of filing for bankruptcy is far more viable than presumed possible. Business recovery strategies can be implemented as a last resort to render an unprofitable business eminently profitable or at the very least solvent. Business owners should learn how to operate their businesses efficaciously so that they do not have to resort to exhausting contingency plans. The first business recovery strategy involves undergoing extreme measures to cut costs in as many areas as viably possible. Executing this strategy goes beyond simply trimming off the fat, metaphorically speaking. Instituting this strategy can entail drastically reducing overhead costs and labor costs. Some major changes that can be undergone encompass leveraging "contract, temporary or outsourced employees to replace higher-cost personnel" (Totka) and doing everything in your purview to minimize labor costs. Moreover, faltering companies can also reduce their marketing costs, close office locations, and can even search for more affordable suppliers to buy products from which can help them significantly reduce their costs of goods sold. Variable expenses that can be cut back and that least contribute to increasing the bottom line should be either severely reduced or completely eliminated if feasibly possible. Declining companies can capitalizing on more profusely leveraging social media platforms for content marketing purposes and can even launch affordable pay-per-click campaigns on low cost advertising platforms, such as FaceBook and Instagram, to not only refocus their marketing efforts, but to also attain more targeted reach in a far more cost-effective manner than utilizing traditional marketing strategies. Slumping companies can also consider fully migrating their business operations online by becoming an e-commerce business and by also utilizing drop shippers preempt needlessly incurring the inventory storage costs associated with storing inventory. Leveraging drop shippers to fulfill orders can even help companies completely eliminate inventory storage costs. Companies can also seek to buy inventory as needed from more affordable suppliers, especially if a copious amount of suppliers offer homogeneous retail products that the company sells. The second business recovery strategy revolves around emphatically focusing on sales and marketing efforts to become profitable. Businesses can generate more sales revenue by acquiring more loyal customers, by generating more sales volumes as a result offering lower product prices, or by charging loftier premium prices for their products. In spite of whichever sales strategy and pricing strategy they pursue for the prospect of maximizing profits, the company will need to efficaciously digitally market their products in a manner that eminently complements their selected strategies. As challenging as it might appear to save a struggling business, businesses are not unsalvageable. Declining brands that are willing to embrace necessary changes and efficaciously leverage effective business recovery strategies in order to parlay their revamped business model into a profitable business venture can make a resurgence in the marketplace. Brands that can most cost-effectively maximize their market reach and advertising impact and that can also minimize labor costs while still leveraging a competent workforce are highly apt to eventually become profitable. Failing companies that neglect to embrace customer feedback, refuse to cut costs and change an unprofitable business model, and that abstain from implementing effective business recovery strategies will become defunct.
