3 Important Questions to Ask Yourself When Your Business is Not Doing Well

 You finally got your new website up and running, or your new storefront set up and open for business, and you’re ready to start making a profit.  Now, two years later, you realize you are still spending more on inventory and marketing than you are making in profit, eek!  This is definitely not what you expected.  

So what exactly happened?  Why is your business not bringing in more profits?  Perhaps there are a few things you missed when doing your due diligence, in which case, you need to go back and check the steps you took when you started your business.  

To help figure out what went wrong, here are a few questions you need to ask yourself when your business is not doing well:

• Did I put the cart before the horse? – Too often, we get over-excited about our new ventures, and we rush to get them off the ground too quickly.  In doing so, we tend to overlook crucial elements that might be the difference between complete failure or success and the longevity of our business.  Neglecting to create a business plan or do a market analysis, as well as building a website — or setting up a storefront — before you’ve tested the market for interest in your product, is clearly putting the cart before the horse…and not the best way to start a business venture.  If this is your situation, don’t panic.  Instead, try to decide what’s broken and whether it’s fixable.  If it is, fix the problem and move forward; if it’s not, consider hiring a qualified business consultant to help get your company back on track.  However, if this is not an affordable option, then now might be the time to consider walking away and finding a new venture.

• Are my personal goals still the same? – Does being an entrepreneur still excite you?  Have you lost sight of why you initially started the company?  Are you still fascinated by what you do?  The answers to these questions are important because they speak to what you are feeling and might be why your company is not going anywhere.  Running a company is hard work and can exhaust you to the point you are no longer happy doing what you do and no longer interested in making the sacrifices required to keep the company running.  So before starting your own company, be 100% certain you are not doing it for the wrong reasons (i.e., to get rich quickly) and that your company reflects who you are and allows you to do exactly what you love to do.  Build your company around the things you are passionate about. Otherwise, you might find your company on the fast track to nowhere.

• Did I formulate a solid business plan and execute it properly? –  What were your thoughts when you created your plan, and did you write them all down?  What resources did you use to build the plan?  Did you develop a marketing strategy and test your target market?  What about management…how did you plan to structure it?  Did you have enough finances to begin with?  This may seem like a lot to consider, but how you answer these questions will explain whether you devised and executed a solid plan properly.  But more importantly, your answers may highlight possible reasons why your company is not progressing.  The primary reason many companies fail is because of improper execution of the business plan.  So, review your plan for missteps and re-vamp or update it if necessary.  If you are not comfortable doing this, enlist a professional’s help to ensure your plan gets modified correctly.

No matter what the situation, if you realize your business is not doing well, stay calm and try not to panic.  Re-focus your attention on rebuilding and restructuring your company. If you are still passionate about what you do, and you’re enthusiastic about putting in the long hours, you will get your company back on track, you will start to see profits again, and consequently, you will save your company from going nowhere.