SETBACKS: STRATEGIES FOR RECOVERY
Setbacks are a part of life. Whether in business, academics, relationship or career, people would always encounter setbacks but in different ways. Collins dictionary defines “setback as an event that delays your progress or reverses some of the progress that you have made.” Setback is what no one venturing into any serious undertaking wants to experience. Once an idea becomes sizzling hot, the motivation for success that drives you to roll out your plans will not leave you with any options for a setback. But we are not infinite, setback can rear its ugly head somewhere, reversing progress earlier made.
In business, statistics from experts indicated that about 61 percent of startups in Nigeria in 2023 failed just after one year of operations. Key factors adduced for these staggering numbers are poor business, model, inadequate funding and inadequate business skills by business owners. Where there is deficit of business planning, your project will fail. Alexander Graham Bell’s philosophy of success is: “Before anything else, preparation is the key to success.” So, how do you manage to recover from setbacks to put back your project on track?
Rethink your business model
An enterprising business lady needed some inputs to help leverage her connections and close a business deal. A look at her company’s brochure, shows that she was offering too many services that were not related. From events marketing to property management, choral group management, cooperative society business, political group mobilization and building materials supply, etc. She really does not understand exactly what her business model is. By offering too many unrelated services, potential clients will not trust your competence.
The days of spreading your net in the ocean for any type of fish is over. To carve a niche, you have to rethink your business model. Investopedia, an online business consulting group, says: “A business model identifies the products or services the business plans to sell, the target market, and any anticipated expenses, in order to outline how to generate a profit. Business models are important for both new and established businesses. They help companies attract investment, recruit talent, and motivate management and staff.” Seek to specialize in creating value in your core area of skills, your business model should revolve around your ability to create and deliver value to your audience. You will then update and align your operations with current trends and innovation to remain relevant to your stakeholders.
Cash flow management
Cash flow is about the money that comes into your business through sells of your products and services, and money that goes out by way of payment for job done, staff and business daily operations. A business organization that cannot meet its minimal cash input and output for operations, staff and product delivery to customers will soon shut down. Cash flow makes businesses work. You need cash flow to run your operations. Cash flow is important; it is the oxygen of a business. Effective cash flow management is the anchor of a thriving business, especially at challenging times as businesses experience currently in our nation.
As a forward-looking entrepreneur who is interested in growing the business to sustainable depth, understanding cash flow management is fundamental. This is where you separate needs from want. As a small business, aim to have more inflow than outflow of cash, avoid spending on non-essential and invest in growing the business to increase inflow of cash. Remember, it is the business money, which is your capital, so you’re not to spend it solving family or friends matters.
Increase customer base
Gaining newer customers is the secret for growth of your business. Your customer base growth can be attainable through improved product quality, and customer service, referral and reputation management, your can engage marketing and sales strategies to boost your chances of registering new clients. Whereas big corporations can afford to advertise and reach millions of people, your main source of increasing your customer base is your understanding of what your clients actually need, your integrity, quality products and services.
Adapt to evolving digital environment
Almost everyone sector of life is digitalized; why should you be left behind? Invest in digital skills to stay connected and relevant in your area of operations. Your number one digital tool is your smart phone; upgrade and learn how to maximize the use of your smart phone for not only making and receiving calls but as digital communication channels to reach a broader sphere of your target audience.
Your smart phone provides you with software and apps you can engage to ease transaction. There are facilities like digital diary, email, graphics, reference materials, books and schools you can attend online in your smart phone. Mastering the use of your smart phone will help you solve a lot of problems travelling long distances to meet experts may not solve. If you’re deficit in digital exposure, training are available on your phone. Just click the right buttons.
Cutting edge-skills
Poor management and business skills have been indicated to have quickly killed businesses faster than anything else. If you have suffered setbacks by employing skilled staff that stole your business model to start their own, update your skills through skill improvement programmes. It is better you shut down your business for months to acquire cutting –edge skills that will enable your business compete favourably in the marketplace. If the skills you outsource are the mainstay of your operational success, you will likely not go far. No matter how trustworthy your staff is, issues may crop up that will require you take the seat to deliver your services to client and get paid.
Load-shed
Yes, you dreamed of growing faster and swimming in the big ocean but internal operational indicators have raised early red flag. It’s a business common sense to shed load. This may affect subpar performing staff, office overheads like high rents and excesses. Just cut down on some expenses to lighten your overheads.
Mentoring
Benjamin Disraeli said that, “The greatest good you can do for another is not just to share your riches but to reveal to him his own.” Mentors can help in discovering more potentials and opportunities you have not known and explored. Find someone who is doing better in your area of trade and share your dreams and challenges with.
There are no challenges in life that are really new; someone has faced them, overcame them and has experiences that will help you navigate through your own difficulties. Your mentor can become a great asset for your growth and stability. Don’t be afraid to share your dreams, as no well-exposed mentor would mislead you or steal your ideas.
Synergy
Network with others in your field, it will help you increase your opportunities, improve your skills and access to more information in your field. You are only skilled to some extent, others have better skills in some aspect of your business. Synergy is a business ladder you can use to climb higher. There is someone out there who is willing to listen, if you’re willing to talk.
