Failure and Loss in Business

Just about every day in the news there’s a story about how a company is struggling or losing or failing. Over the past few years we’ve seen the struggles that some of the biggest brands have been going through, some able to do something of a turnaround, others not able to pull themselves out of a hole.

It’s frustrating from the perspective of outsiders like myself who advise businesses and see some glaring issues they aren’t addressing or trying or have simply dismissed. I also don’t always believe we need businesses the size that some are and their size is definitely a factor in how much they’re struggling. But I do believe every business has something to contribute, and when they fail they are letting people down. Yes, every business has a life cycle and many have a definitive end (such as when the owner retires), but I’d much rather see a business go out on a high note than crash and burn.

It’s also frustrating from a customer perspective when they’re seeing a company they love struggle and may even have some anxiety or fear around the loss of the company from a service or product perspective. If you rely on a product or service for your health or care of your family, there’s a much higher cost to switch than if we’re talking about something like a lawn care company.

It’s never a good idea to avoid the bad news or data about how well you’re doing or how you may be struggling. The sooner we face the truth, the easier it is to fix or address it. We also need to find a balance between continually increasing the number of customers we reach with not getting too big to manage and sustain. And the final truth we need to accept is that sometimes businesses fail and that’s just the way it goes. The good news is there are other businesses out there that can fill in the gap, but of course it’s likely not the same.

As I said from the beginning, I don’t think businesses need to fail in spectacular ways. As business owners we need to be more prepared for the natural ups and downs that a business goes through, we need to be more willing to reach out and get help and accept criticism, and we need to be open to change and growth so that we can change and grow as our customers do.  What steps does your business need you to take today?

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