Sometimes It’s Good To Go Back To The Drawing Board

Entrepreneurship is often a lonely road. You’re not the only one that will walk it but it sure does feel like it at times. When things aren’t going right, you tend to want to give up.

Many entrepreneurs will, in fact, cease working on their business, let it collapse and come back with another business plan next year.

Sometimes this is necessary… but hardly ever is a business plan completely un-rectifiable. Almost any business plan is able to be saved, but it takes time.

Most founders know this, but fear they’ll burn out in the midst of the pivot. That is defeatist, and not always the case.

Put on a temporary stop

When you’re at your wit’s end and you’re clearly watching your business collapsing next month, you need to quickly act to save it. By putting on a temporary stop to all tasks, productions and research, you will buy yourself some time.

But what if you have employees?

This is perhaps the toughest part because you will have to send them home. However, you should write them formal notice, explaining what’s going on and what the circumstances would be or that you’re aiming for, to call them back to work.

This will be a bombshell for them, but there’s no other way. Employees are one of your largest expenditures, and you simply cannot have them continue to work when you’re changing your business. 

Speak to your suppliers and partners if you have any. It’s best to write them an email explaining what’s going on and schedule a phone call with those that really need more information.

It’s going to be tough and you will be emotionally battered like a flag in a crosswind. However, always remind yourself each day, that it’s just a temporary measure and that you’re working towards fixing your business plan for good.

Speak to the taxman

The government doesn’t know if your business is doing well or not until it comes to filing taxes. So, rather than waiting for this snowball to grow and grow, you need to contact the taxman and tell him what’s going on.

Speak with a dormant company accounts service that will make your case for you. They will prevent your business from having to cough up corporation tax, among other things.

This gives you breathing room, and a heavy weight will be lifted off your shoulders. When you’re no longer paying taxes, you have more money to solve the problems that are causing your business to fail.

Pinpoint your troubles

Performing a self-assessment of your own performance, business plan and decision-making is never going to be easy. It’s a real hit to your ego and pride because something that you tried to build has ultimately reached the point of collapse.

But, you’re not finished yet…

This is why you should always go to the drawing board instead of throwing the towel in.

Consider hiring one, or a few experts in certain areas like legal, risk, financials and product development.

A risk analyst will look over your operations and business plan, and have no trouble pointing out where you’re hemorrhaging money, where waste exists, are which products need to be axed from your brand. In some cases, the problem may stem from simply just not receiving website visitors, which is often the case in competitive industries such as law. In that case, working with a specialist that understands the ins and outs of legal SEO may be all that’s required to get you back on track.

Speaking to a business planner will also help you structure your business to a point that is feasible. Many times, first-time business owners just don’t know how to run their own business despite having great ideas. A hired professional can help.

The bottom line is: Don’t give up.

If your business is on the verge of collapse, you shouldn’t throw the towel in without trying to save it.

It might just be a few simple issues that are easily solved.

Tell the taxman to hold on while you get everything in order. Temporarily send your employees home, and begin to work with a consultant to iron out the kinks.

This is a contributed post.