Ever found yourself wondering how to grow a stagnant business, especially a Zombie business? It’s not as spooky as it sounds, but it’s certainly a situation no business owner wants to find themselves in. A Zombie business is stagnant, barely breaking even, and one where the liabilities are higher than the assets, and it´s a struggle to pay the bills. It’s a tough spot to be in, and it presents a real dilemma: should you keep pushing forward, or is it time to call the liquidators?
Here’s the silver lining – there’s hope for Zombie businesses! Believe it or not, a substantial number of these stagnant ventures have the potential to recover and truly thrive. It just takes the right strategies and timely intervention. Here are 7 strategies that will help you do just that.
The potential for recovery
A study from the London School of Economics threw in a bit of a lifeline – they found that up to 67% of Zombie businesses can shake off the cobwebs and bounce back to life as profitable entities.
Let’s not put on the party hats just yet, though. This report came out in 2020 – a period with historically low interest rates, and, right now, we don´t have those! The economic climate isn’t exactly throwing favours our way, and Zombie businesses only need a major disruption like this to tip them over into insolvency. So how can these businesses recover?
To put it simply, when things are starting to go wrong, don´t wait for the situation to get worse. Be proactive and take action to update and improve your business.
Strategies to grow a stagnant business
Alright, so we’ve established that there’s hope for Zombie businesses. So if yours has become stagnant or is teetering on the edge, it’s time to pull up those socks and make some moves. Here are 7 strategies to grow a stagnant business:
1. Maximise your profit
The main problem with a lot of Zombie businesses is profit – there just isn´t enough of it. So this means, your first step should be taking a hard look at your pricing and costing. Are you selling yourself short? Are your prices too low? Review, adjust, and then review again! It’s all about continuous improvement and tweaking until you hit that sweet spot of profit enhancement.
2. Manage your cash flow
Managing cash flow wisely is the key to survival. Ensure your customers are paying promptly and keep an eye out for bad debts. Mitigating these risks can keep your cash flow healthy and steady.
3. Encourage a positive company culture
A happy team is a productive team! Enhance service quality and boost employee morale. Trust me, a positive company culture does wonders for business performance. Happy employees and happy customers = happy business!
4. Address overdue debts
Are debts hanging over your head? Explore refinancing options and strategies for debt repayment and reduction. It’s like spring cleaning but for your finances!
5. Embrace E-commerce
E-commerce could be the answer if you´re looking to grow a stagnant business, as most companies can benefit from it. Embrace an e-commerce strategy that suits your business needs and reap the benefits.
6. Boost business volume
What can you do to improve your marketing strategies and build the number of sales your business makes? How can you increase and improve customer engagement? It’s time to get your business out there and make some noise.
7. Manage stress
Running a business is stressful, no doubt about it. However, managing stress is crucial for better decision-making. If you or your employees are over-stressed, encourage self-care and work-life balance. You´ll soon see how it positively affects your business performance.
Kickstart your growth
Zombie businesses have a fighting chance! With determination, the right strategies, and a dash of adaptability, turning things around is more than possible. If you’re still feeling stuck, however, remember there are other things you can do to move things forward, and one of those is asking for help.
This is where we come in. If it was easy, then every business would be flying high. However, with the right help, it is far easier to break out of your business rut. Get in touch, and we´ll arrange a free consultation where we look at the next steps for your business. Let’s reset your business on the path to success.
