How To Deal With Catastrophic Situations In Your Business?
Being a businessman, you will surely make the attempts to fight as you already have struggled since the inception of your business, but the catastrophic situations will force you to move otherwise. The proactive businesses and professionals take the necessary steps beforehand to have a shield against major challenges. Most of such situations are based on external factors, which are uncontrollable. However, great businessmen have a backup to fight in such situations for their existence. All new and existing businesses have to face such circumstances;
Shortage of Funds
Shortage of funds is one of the chief issues a business ever, and many times, face. No matter whether you have brought huge funds from your own pocket, have taken loan or have borrowed for investment, all businesses have faced this problem. At the time when you have no doors open, leaving everything and running away may seem the best option but the fighters take the stance as go as far as borrowing fund from the market. There are a number of options in case of failure; amalgamation or merger. You can also opt to let other firm acquire your business, but disinvest your dog products and services.
According to BCG Matrix, the dogs are the products and services that have low market share and low growth. If your company has strong cash cows than hold them and stop investing in new products. Study external environmental factors, if there is a trend of downfall in your specific industry than reduce your portfolio by selling them to other business or disinvesting and investment in diversified business. For diversification, keep a backup proactive as at time of catastrophic situations you will be mentally disturbed and most of the businesses have taken the wrong step of dissolving their businesses.
Fighting within the ethical confines is equally important as fighting itself. Instead of using black hands or indulging in fraudulent activities, it’s better to move back. Simply dissolve your business; a business’s major foundation is its reputation so make sure that people remember you with good words. In future when come back in the market, you will be known for the trust and people will respect you, choosing the wrong path will end you up in sand. Be courteous, positive and believe in yourself, things will turn around and you will get everything again like Steve Jobs.
One of the core problems businesses face is deceiving as no one knows who will deceive at what time. Sometimes your employees deceive you, sometimes your suppliers and sometimes others. Businesses should have back up and strategies of deception so that if any of the stakeholders betray them, they can use that at the time of need. Defensive strategies must be prepared by businesses against bigger and aggressive competitors. These defensive strategies are the methods of countering harmful actions of competitors related to your business.
The fight to take the highest market share in particular environment is the major constraint that every business faces. A proactive business approach is to have a protected shield and an eye on latest developments competitors are having, it can be related to technology, social work, new product development, aggressive marketing strategies and a lot more. Remember, your competitor motivates you to fight for your existence and bring new changes for the betterment of your business and society.
On the contrary, some competitors go to the highest extent of aggressiveness and they may attempt to take over your business. Be careful and know the strengths and deficiencies of your business and act accordingly.