What to do if your new business project is losing money?
The fear of a new recession puts much pressure on innovation projects. Especially the ones that lose money.
Don't just look at the financial numbers to decide whether to kill the project.
First, assess where the project is standing on four levels:
Sales & Marketing:
Is your product or service selling?
If not, what is the main reason customers do not buy your product?
If you sell, can you get a substantial return on marketing & sales expenditures (between 200 and 300%)?
Product:
Does your product deliver the value the customer expects? Do you get good reviews and case studies?
Operations:
Is there a systemized approach to delivering your product to your customer?
Is there a lot of waste in the process?
Team:
Is your team performing as it should be?
Do you achieve the results you are supposed to get?
Now you have to be radically honest and decide whether your project is performing well or should be killed.
Start prioritizing how you can fix the project. Based on the problems you are trying to solve, ask for 3 to 6 months of extra time from your board and work on the best possible solutions to improve the business.
Never underestimate what you can do within 3 to 6 months if you have a laser-sharp focus.
-
Don't create unicorns,
Let's breed blue whales.
🐋
