My business nearly tanked in 2012.
When I launched Transcription Outsourcing in 2010, our primary focus was providing transcription services to medical practices and hospitals. My business started out on a strong growth track for the first couple of years, then profits began to trail off. As many businesses in the medical industry moved to voice recognition systems, new leads began to shrivel and our projections sank.
I realized we had to make some serious changes to avoid going under, and began a complete overhaul of the services that we offered. We also diversified our client base, and today only half of our business is in the medical industry. The rest is legal and law enforcement clients, along with a good number of small businesses.
The good news? I was able to save the company by following a few simple rules and my gut instincts. Even better news? These particular rules are applicable to any business in any industry:
1. Admit that failure is an option. One of the hardest things for a CEO to admit is that the product or innovation that launched the company may not be the one that sustains it long-term. It is hard to give up on the idea that launched 1,000 ships, but sometimes that idea can’t keep the ships afloat. Admitting that your business could go under if changes aren’t made is often a very difficult thing to do. But once you admit to yourself that the company is floundering, you have opened the line of thinking that is needed to eventually save your company.
2. Sometimes trial and error is necessary. Once you realize that your business needs to adapt to a changing market, you can begin to look for ways to save it. Though a scary proposition, sometimes trial and error is the only way to make any headway. If your tried-and-true radio advertising campaign suddenly isn’t bringing in new business, maybe it is time to try social media. If your current personnel aren’t bringing innovative products to the table, maybe it is time to bring in some new blood. When I realized it was time to make changes to my business, I tried various new methods of marketing, advertising, and hiring personnel. Some changes worked, others did not, but through the process I was able to streamline my business and utilize fresh techniques to get my company out of the red.
3. Realize that nothing will go as planned. Many times a CEO’s vision of growth and a profitable future can become the company’s Achilles heel. There are so many factors affecting various markets that are out of your control. That said, you have to be prepared to scrap visions and start fresh. When my company began to lose revenue, I had to figure out other sources of income aside from my medical clients. I focused on my bottom line. If you can’t pay your bills, you won’t be open for long. For every dollar or client lost, I looked for a creative solution to replace streams of revenue.
4. Listen to experts. If your company’s profits begin to head south, it is time to start listening. Focus on clients and what they are telling you, either verbally or with their wallets. Listen to media, other influencers in your market, and other businesses that share relationships with your clients. Find out where needs have shifted. Focus on communicating with your employees as best as possible. Often times your “feet on the ground” will have a better understanding of the pulse of the industry. Start asking questions and keep your ears open.
All businesses will reach a point where they need to diversify and adapt—or else face the possibility of failure. This rule applies to both the tiniest corner shop, as well as behemoths such as Apple and Google. Often, the simple acts of listening, observing, and trying new things can save a business from failure.
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