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When Businesses Fail: 5 Tips to Give Struggling Businesses a Fighting Chance

By: Brittany Engelmann-- 2016-06-17 8:00 am --

Entrepreneurialism has been declining for decades. According to research conducted by the Kauffman Foundation, entrepreneurialism has declined 44 percent between 1978 and 2012. This is likely due, in part, to the high rates of business failure, with only about 50 percent of companies surviving the first five years. Operating a business is hard work, but with the right strategy, you can increase your chances of success.

  1. Start with the right wholesale supplier. If your business is struggling, the problem may lie within your chosen wholesale supplier. For small businesses, the supplier you choose is one of your greatest tools for operating a successful company. The supplier ensures the products you need are always on hand, the shipments arrive on time and in good condition, and that only the highest quality of merchandise is provided for the lowest possible price, so you can maintain healthy profit margins.
  2. Focus on the present, but don’t forget the future. The key to running a business successfully is by continually planning for the future, while ensuring your present business practices are never neglected. You need to ensure you can competently handle every problem that arises, while still thinking ahead about ways to grow your business over time. Use your business and customer data to help you identify trends among shoppers, so you can better plan for the future and make business decisions strategically.
  3. Focus heavily on employee recruitment and retention. Employees are one of your greatest tools when launching a thriving company. Great employees lend to a positive shopping experience for customers, they work more efficiently, they collaborate effectively, and they’re more committed to their jobs. By focusing on cultivating an inviting workplace culture, you can enhance employee retention, which will bolster your chances of success.
  4. Put your profit margins first. The two main factors that contribute to profitability are the profit margins you’re maintaining, as well as the number of sales you’re generating. You need to ensure that the profit margins of your business are established in a way that generates ample returns. Compare your pricing with that of competitors to see whether your pricing models are fair to both you and the customer. Shop around at a variety of wholesale suppliers to ensure you’re getting the lowest prices and the highest value on all of your merchandise.
  5. Respond to economic changes. Many businesses simply blame their slow business on the economy. Yet, this shouldn’t be an excuse. Even in economic downtimes, every business can still maintain healthy sales, provided they’re responding to shifting economic changes. Keep a close eye on the economy and alter business practices when needed to adjust to shifting economic circumstances. This may mean adjusting the cost of merchandise as gas prices fluctuate, or it may mean investing more in marketing during low economic points. No matter the circumstances of the economy, your business can maintain healthy sales, as long as you remain informed of economic conditions and adjust your business accordingly. 

Entrepreneurs are a brave breed, as launching a business takes skill, determination, and a significant degree of risk. If your business is struggling to maintain healthy profits, consider switching to a new wholesale supplier. With the right supplier, your company can reduce overhead spending by sourcing the lowest prices on office materials and store supplies, while offering competitive prices to customers on all of your merchandise. Visit our website today, and explore a vast range of exceptional products at the lowest prices available.