2020 has been rough for many industries. In fact, unless you’re one of the few major companies like Amazon, Walmart, Target, Apple, or Google, you’ve probably been hit pretty badly by intense market fluctuations, drastic changes in consumer behavior, and a pandemic that has killed hundreds of thousands of Americans. In other words, if your business is struggling, you’re not alone. That being said, you don’t need to fail if you can find ways to stop bleeding money today or even this month.
How can you address such massive problems in the midst of a failing enterprise? By getting your hands dirty and starting to implement plans that solve the issues you’re facing. From tapping advanced analytics analysis to turning around your merchant account, here are a few strategies to turn to in the face of falling profits.
Advanced analytics shows you problems before they arrive.
Data is a key component of turning your business around, regardless of the reason for its tailspin. This is because advanced analytics platforms allow you to leverage a wide array of big data, including historical records and predictive analytics to identify trends in the past and anticipate future trends. All of this boils down to using data science in order to get you the information you need. Using big data allows you to be proactive about your path forward instead of reactive.
For example, let’s assume that you’re using an advanced analytics program that combines machine learning with past data analytics to forecast company profits each quarter. Maybe you normally do a lot of business in the fourth quarter because of holiday sales, and you’re counting on these sorts of purchases to help you stay afloat during the pandemic. However, a data analyst can use your analytics profile to see that these sales will be down 10 percent from what you were anticipating. This kind of data analysis allows you to pivot ahead of time to find strategies that help you make up the difference. Without data analytics, you’d be in the dark until the end of the quarter — and possibly filing for bankruptcy.
The right law firm helps you make the most of your assets.
Another strategy to employ when you’re in trouble is to tap an experienced law firm. Many times a team of experts at a law firm are able to take a much wider view of your financial situation, ultimately helping you analyze what debts and assets you have so you can leverage those factors moving forward.
For example, if a reporting error or missed deadline has resulted in your merchant file being terminated, this could be a major business challenge at a time when more companies are counting on e-commerce in order to fulfill orders. That being said, there are law firms with a background in helping companies navigate terminated merchant file issues. As such, it’s critical that you get a consultation with a reputable law firm as soon as possible in order to address these problems and get your merchant account back up and running.
Austerity measures can help you weather the storm.
Keep in mind the running a business is a marathon and not a sprint. That old adage is even more crucial to keep top of mind in the midst of a pandemic that seems to be changing so many aspects of the business world. In some situations, you may need to implement new policies in order to maintain balance in your books and your staff employed. Austerity measures look different based on your sector and the size of your company.
That being said, some of the most common approaches include decreasing the salaries of your highest-paid employees and reducing matched 401k contributions for a certain time frame. While these sorts of tough steps are by no means fun, they could be the difference between a thriving business and insolvency.
