Help My Failing Business! If your business is nearing extinction, these techniques can prevent it from becoming a thing of the past.

Q: My business ison the brink of failure, and I don't know what to do about it.Any suggestions?

A: Most successfulentrepreneurs will tell you that they have had one or morebusinesses fail before their current one succeeded. However, it canstill be a very disheartening ordeal to go through when yourbusiness is not living up to your expectations. There are a numberof turnaround consultants whose job it is to help keep yourbusiness afloat, but they typically charge large fees and requirepayment upfront. Here are some simple ways to begin looking at yourbusiness in a new light.

First of all, remove yourself from the equation, and look atyour business objectively, as a case study. The joy of creating andgrowing a business is unlike any other. When your business is doingwell, the feeling is exhilarating. On the other hand, if yourbusiness is failing, the feeling can be devastating. You feel likea failure yourself. This is not healthy for you or conducive toimproving your business. Therefore, you must view your business asan independent entity, where its health is dependent on inputs andoutputs.

Once you have removed yourself from the equation, take a lookinside the business. You cannot save a sinking ship withoutpinpointing exactly where the hole is. Therefore, you must do thesame with your failing business. Key areas to look at are thedemand for your product or service, your marketing and salesefforts, and your cash flows. At the root of your business is thedemand for your product or service. Just because you think theremay be a need for your product or service, the general public maynot feel the same. This can be a very humbling experience, but youmust remember that the law of supply and demand is still the rootof economics. If people do not want to buy your product or service,then you may just have to abandon ship and move on.

However, if there is statistical evidence that there is a marketdemand for your product or service, then you have to look at yourmarketing and sales efforts. Are people even aware of what youoffer? Develop a marketing plan for your business, and stick to it.While word-of-mouth can prove invaluable, you must always maintaina marketing budget to keep a presence in the market. Some peoplemake their marketing budget a percentage of revenue. Others choosea more subjective way to allocate funds. Either way, be sure thatyou are constantly creating awareness about the products andservices you offer either locally, regionally or nationally,depending on your industry.

Also, if you haven't already, try to become affiliated withgroups or organizations in your industry. Networking can providevaluable support in down times and expand the sphere of influencefor your business. If you do not have a sufficient sales team, thenconsider finding people to work on commission. This way, you onlyhave to pay them when orders come in.

If cash flows are bringing your business down, analyze everysource of income and expenditure that your business generates on amonthly basis. Decide which expenditures are truly unnecessary.It's time to work with a bare-bones budget. Next, determinewhich bills have to be paid promptly and which bills can bedelayed. You should have a sense of which vendors are more lenientand which are less forgiving. If not, call them individually andexplain your circumstances. If they value your business, most ofthem will work out some sort of payment schedule with you.

Finally, look at your accounts receivable and determine whichparties owe you money. It's a common accounting fact that theolder an outstanding receivable is, the less likely it is you willreceive payment. In the end, your oldest accounts will be writtenoff. So call each and every party that owes you money, beginningwith the most recent receivables.

Remember, a variety of things can bring a business down.It's not necessarily your fault. If you do have to jump shipand close your doors, don't take it personally. Theentrepreneurial spirit is unyielding, and no ordeal is a failure ifyou learn from it.

Brian O'Rourke is the CEO and publisher of EnTrends, an onlinepublication devoted to exploring how entrepreneurs work andlive.