Losing money in your business is not an easy thing to deal with.
When we opened Disneyland Paris, we were losing $1 million each day. Talk about pressure.
One reason many businesses lose money is debt. Be careful how much debt you take on for your business. You may have enough sales right now, but if something happens, the debt can keep you from meeting your obligations.
When your business is losing money, you have to walk carefully when it comes to customer service. Don’t cut away from what draws customers to you and you will find the problem gets worse when customers stop coming.
Here are the 3 steps I would take to turn around a business losing money.
Find out what is wrong. Is it debt? Is it the product? Is poor service keeping people away? You have to look at everything.
Look at Productivity problems. Is the way you are doing business causing you to lose money? Where can you improve your processes? Where can you cut spending without taking away from the customer?
Do you have the right management? Often, problems are created or solved by management. If you don’t have the right people in place you, will never turn the problem around. Take a hard look and make sure you have the right people in the right places.