As an entrepreneur, you started your company with plans about the best ways to operate and expand, but as you grow, you may realize that the strategies you currently have in place aren’t as effective as you would like. Overhauling your business plan can be difficult, especially after you have worked to build your brand and accomplish certain goals.  However, making a change to your company’s tactics might put you in a better position to reach your overall aims.

In order to decide whether it’s time to make a change, there are a few steps you can take:

1. Get to the root of the problem

Knowing whether it’s the right time to make a change can be difficult. During the first few years of a company’s life, it’s natural that operations may be slightly volatile. But if this becomes the rule rather than the exception, it may be time to explore other options. Consider possible reasons for your business slump. Are your marketing strategies effective? Has a shaky relationship with vendors interrupted your product supply? Have customers provided frequent negative feedback about your service or products? Examine each area of your company to get to the root of the issue.  Make sure your research is sound, and bring in outside advisors if necessary.

2. Decide what to change

Once you know what’s wrong, you can put a plan into motion to make the change. Maybe you need to divert more resources to your marketing department, or spend more time focusing on building client relationships. The key is to maintain business strategies that work to your advantage and make significant overhauls to tactics that have proven to be ineffective.

3. Be prepared for the transition

It can be stressful to make sweeping changes to one area of your business, whether it be hiring new employees, adopting a new accounting system, or negotiating new investor agreements.  Allow yourself enough time to make the transition, and keep in mind that the end result can be worth some short-term discomfort.

4. Communicate Changes

During the transition period, it’s crucial to notify customers, employees and business partners about changes that will affect them, either positively or negatively.  Sweeping bad news under the rug will only make things worse in the long run.  Be frank in explaining your reasons for change, and communicate the news in a positive and upbeat manner that lists the benefits to be gained. 

 

The information contained herein may not represent the views and opinions of Nevada State Bank or its affiliates.  It is presented for general informational purposes only and does not constitute tax, legal or business advice.