Basic Strategies to Turnaround Your Broke Business into Millions

Turnaround strategies for broke business

Going from millionaire to broke or success to failure as an entrepreneur is an intractable problem and the fact is there is no such thing as a silver bullet to this problem.

However, the good news is that it is not a problem that cannot be solved. There are strategies that has proven to work that can turn around your almost bankrupt business. These steps are time-proven strategy that has been employed by Warren Buffett and other leading investors worldwide such as Live Ventures, formerly known as LiveDeal Inc., in 2011, when the company nearly bankrupt and just days away from being delisted from Nasdaq

Read also: From broke to millionaire: 4 lessons a serial entrepreneur can teach us

First, you must prepare for negotiations like your career depends on it, because it does. “A complete review and thorough analysis of the other party is critical to the success of any negotiation. Information is power in this process. You need to know everything you possibly can about the people with whom you’re negotiating. Research them, review their website, past employment, social networks, press releases, press coverage, etc. The more you know about them, the greater your edge”.

Also be sincere, be honest and never lie.” Being honest is critical to getting what you want out of a business deal. Most people can see when you’re sincere. Developing a reputation for being honest will most certainly pay big dividends in the long run”.

“The first person to make an offer loses” is the biggest myth in negotiation strategy. “By being the first person to say a number that you think is outside the range of acceptance, you end up making the other side work harder to prove to you that their offer price is fair. By putting them in that spot, you control the negotiation and they now have the burden of proving to you that their position is worthy of your consideration”.

Read: 7 Important lessons i learned when starting my own business

Use every penny you have in the most effective and efficient way possible. “Nothing I’ve done would be possible without being meticulous about how every dollar is deployed. If you want to bring your company to scale, you must carefully calculate returns on investment, risk factors and cost benefits and weigh those against other opportunities that you may have. In our case, we focus on buying high quality companies run by excellent management teams. By far the most important factor in making a decision with acquisitions is its management team and historical financials. When it comes to finance, your past will tell me your future. It’s as simple as that. If a company is consistently profitable and growing its business, it’s likely a good candidate for acquisition. Show me the last five years and I can predict what the next five years will look like.

The most important thing to take away from this point is to be annoyingly meticulous about how you invest the capital you have in your possession. Every dollar needs a name and each investment should have some sort of history of being successful prior to your involvement”.

Finally, when it comes to management and hiring, hire slow and fire fast.” We’re always on the lookout for great people who can add value and aren’t just working with us for the paycheck. Passion is the most important quality we look for, and we rarely look at resumes during interviews. This is exactly what your mindset should be. Try to gauge the level of passion a candidate has. A nice glossy resume without passion is valueless to you unless you’re hiring them to write resumes”.

Read also: Passion is fuel for your business

Make your business greater and grow faster through utilization of solid business fundamentals. Think outside the box sometimes and make bold choices.

By Rebecca Essilfie