Best best known are the closing or sale of business units that take the company from its original focus

How to save a company from bankruptcy

Failure of a business is an unfortunate circumstance to which a company can be found. Although most of the companies that fail do so during the first or second year of their life, others grow, reach maturity and finally fails.

The failure of a company can be considered in several ways and can be the result of one or more causes. In this article we will quote some causes that are commonly recognized as part of the failure of a company regardless of the size of it.

With regard to the concrete measures taken to cope with such a situation, are used in 82% of cases a reduction in employees. It is, without competition, the most popular measure. Without However, it is not even remotely the most effective. It will surely be necessary to restructure the template, but if it solves not only almost nothing. However, companies pay very little attention to two essential aspects, such as pricing strategy, only 8% of the companies have studied it in their plans, or the management of working capital, 31%.

Those are the aspects that apply, but many studies try to determine which were the most effective. And here arises the important thing: the best measures are the closure or sale of business units that scatter to the company that knows how to make truth and that possibly have arisen in times of excessive growth and disposal of products not profitable.

It is difficult to manage change, and is even more difficult when the time and the need for survivor.

rescue a business
The most important thing of all is react on time and at all costs avoid entering a spiral of decapitalization of the company, trying to endure as possible waiting to come better days. Many times companies acting in this way, in part by inertia, and partly because emotional wanting to retain employment. Immediately we mentioned some main ideas to rescue our business.

Works to long term thinking long term is one of the best ways to avoid the crisis. Get five or ten years from now a year, business plans. Sometimes this plan may change (which is very likely, because the world is changing too fast), but at least you have a guide that sometimes is critical to ensure the health of your business.

All work carried out consciously and foreseeing the future brings good fruit, and with this will have less uncertainty.

Immediately cut the excessive and unnecessary expenses. One of the main symptoms that something is not going well is not enough money. From there which is essential to reduce urgent any expense that does not contribute to the operation of the business and generate utilities: too much advertising, buying items, fuel rationing, frequency of maintenance, rentals or rentals of offices, consumption in unnecessary meals, telephone lines, etc.

It elaborates a strategy for emergency sales. Either by the crisis or for any other reason, ultimately the only way to grow a business is selling. But you're selling no money. It evaluates your marketing and sales strategy. It evaluates your sellers. Set goals and develop an emergency plan that represents an increase in the results. Removes all staff idle, comfortable or that seniority has to remain without providing results. In times of crisis you must sell, sell, and sell. And as I've said in other posts, it is time to let your desktop work go out and be yourself the best seller of your organization. This will create a tremendous synergy!

It evaluates your prices. The actions of rescue of your business must be a combination of: more sales and lower costs. And so there is more sales it is important to evaluate the prices of your products and services. In times of crisis a moderate adjustment can mean keeping those customers loyal and even capture any potential market of people that now more that ever is looking for more favorable pricing options.

Explores several markets another good way to make sure it is not too suffer the ravages of the crisis is to invest in other markets that are more or less within the framework of investments of the company.

As in the stock market. You don't want to invest in a company only because if if she starts having bad results, all your investment goes overboard, you lose time and money. Now if you'll invest learn well about that business and investment have cautiously.

Another important thing is to have several businesses where invest, thus if one that begins to lose brightness may be that others are winning it and you compensate the losses.

For example imagine that you have a business of creating sites or websites that specialize in the economy of the company. What I advise is that you especialices also in completely different places, sports, etc. So if begins that site for companies to enter into crisis, surely the market of sports you can keep high.
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