Times are tough for hospitality venues and the reality is that some may go under. In fact one in 100 will go into administration every year with the rising cost of goods, labour increases, changes in customer demand and increased competition hitting businesses hard.
At ChefHire we have worked with many businesses to help them turn things around during tough times and here are a few things we have found could help if you find yourself in trouble.
Decide if You're In or Out If you are struggling day to day to keep things afloat then things could begin to feel like a nightmare. Making a clear decision of exactly what you are going to do could give you new energy and the clarity to make the tough decisions. Are you going to turn things around? Or are you going to find a way to exit and minimise your loss?
Consider the Worst Case Scenario In some cases the outcome could be drastic with loss of income or assets. Consider what could be the worst case scenario, and then make a plan for if that happens. How will you turn whatever happens to in to your advantage? Fear can make us make rash decisions. If we map out the worst that can happen and create a clear plan to face it, it can help to dissolve the fear and act with more clarity. This exercise can help balance your emotions, allowing you to approach your situation with a mindset focused on solutions rather than problems.
If You're in a Hole, Stop Digging Some financial problems can be traded through and some cannot. It is important to get really clear of where you are at. Is this just a downturn or are you insolvent? It is essential to be realistic about where you are at if you can't trade through it then face the inevitable.
Don't Make it a Moral Issue Don't let shame, guilt or embarrassment cloud your judgement. It is not a moral issue, a so called 'failure' is just feedback to let you know that you had missing information. Perhaps you overestimated the market, or your timeframes where too short, or you were undercapitalised? Whatever the reason it is all just a lesson and I have never heard of anyone in business who hasn't experienced hard times.
Ask for Help No one can know everything or get through life alone. Specialists could see options that you have missed or didn't know existed. Whether it is a turn around specialist, broker, accountant, or liquidator, could see options that make things less painless. They may not be experts in your business but they are more likely to have an objective view without the emotional attachments an owner has.
Involve Your Team Your staff are your front line and can be your greatest advocates and sources of innovation. Involve them in the problem-solving process; their insights could lead to cost savings or new revenue opportunities. Moreover, a team that feels valued and part of a collective effort is more motivated and productive. At ChefHire we are more than just an agency, we can assist in helping turnaround or find innovative exit solutions. If you need help and want to have a confidential discussion click here to get in touch.