Many businesses in New York fail within the first three years, but those that can adapt and change may have more success than those that stick to their original business plan and structure.
According to Forbes, before making changes to a business, company owners should consider these factors:
The areas that do not need to change
Before starting from scratch again, a business owner may find that there are a number of elements of the company that are functioning successfully. A careful analysis that begins with collecting data, including consumer behavior, may take valuable time, but recognizing areas that do not need an overhaul is likely to save both time and money in the long run.
The original business plan no longer works in its entirety, but now that the owners and stakeholders know what needs to be changed and what can stay the same, this document can be modified with a greater chance of success. When making changes, it is important to identify risks and eliminate them whenever possible.
The importance of communication with employees
Unless the employees were the source of the problem, the company will need to do whatever possible to keep them from leaving. Hiring new people at the same time the company is implementing a new plan will probably take more resources than the business can afford. Although some may still find new jobs at the first sign of trouble, many are likely to be willing to remain loyal if they understand exactly what is going on, and their roles in the changes.
Entrepreneur.com points out that communication is a two-way process that involves listening as well as providing information. While not every opinion or observation from employees and stakeholders will be relevant, each should be acknowledged and considered.