Why Your Small Business is Failing and How You Can Turn it Around!

Statistics show the majority of small businesses fail within the first year. Out of the businesses that survive the first year, nearly fifty percent of those businesses fail the following year. If you own a small business the last thing you want is for it to fail. How do you know what you are doing wrong and how you can fix it?

The first thing you should look at is your business finances. If you have more money going out than you do coming in, it's going to be impossible to succeed. When reviewing your business accounts, you should be looking to see what areas you can cut back on. Try consolidating some of your bills for the time being. Although, if your business is struggling, you shouldn't add more debt only consolidate to pay down the existing. You should also look at things like utility bills. Finding ways to conserve energy can save a lot of money on your monthly expenses. Next you should review your day to day production. Are there areas that need improvement? The faster and the more accurate the work is the first time the more money you save. If there are ways to increase productivity, it can in turn increase your profits.

As a small business owner, you should also be taking advantage of any form of free advertising you can find. Hanging flyers in local stores and libraries, posting ads on free online classified pages, using social networking site, and even just talking about your business any chance you get can bring new business your way. You can also consider benefits for repeat customers, like punch cards, where they make a number of purchases and then they get a percentage off their next purchase. There are numerous things you can do to bring in new business, get old customers to come back, and cut back on the expenses. A little creativity is all it takes to revive a small business.