How to Turn a Struggling Business Into a $100 Million Success Story

Taking on a failing business might sound risky, but for the right entrepreneur, it can be a golden opportunity.

Charles Coristine’s journey with LesserEvil, a snack company on the verge of collapse, serves as a powerful example of how strategic decisions can turn a struggling company into a thriving $103 million success. His story from CNBC Make It offers practical lessons for anyone looking to revitalize a business.

If you’re ready to breathe new life into a struggling business, here are some proven strategies to guide you.

Introduction: Learn How to Revive a Failing Business

Reviving a failing business requires a clear plan and decisive action.

In these 7 steps, you’ll learn how to:

• Identify core strengths.
• Innovate with your products.
• Build strategic partnerships to turn things around.

By focusing on rebranding, cutting inefficiencies, and staying resourceful, you can transform a struggling business into a thriving success.

Let’s dive in now and take some strategy.

1. Identify Core Strengths to Build On

When Coristine bought LesserEvil in 2011, the company was bringing in less than $1 million in annual revenue and losing money. But instead of focusing on the business’s failures, he honed in on its potential. The snack products had a unique health angle, and Coristine knew he could build on that.

Your takeaway: Don’t try to change everything about the business at once. Identify the core strengths, whether it’s a unique product, loyal customer base, or niche market, and focus your efforts there. These strengths can provide the foundation for growth.

2. Refresh Branding and Operations

One of Coristine’s first steps was to update LesserEvil’s branding and cut unnecessary costs. The company was paying too much to third-party co-packers, so Coristine and his small team created their own production line. They also revamped the company’s outdated branding, giving it a fresh, health-focused image that resonated with consumers.

Your takeaway: If a business is struggling, outdated branding and inefficient operations could be to blame. Consider refreshing the company’s image to better appeal to your target market and look for operational inefficiencies that may be eating into profits. Streamlining your processes can free up resources to invest in growth.

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3. Innovate With Your Products

One of the key innovations that helped revive LesserEvil was the introduction of coconut oil in its popcorn production. Coristine was initially skeptical, but after testing the product’s shelf life and taste, he realized this healthier ingredient could differentiate the brand in a crowded market. The result? A significant boost in sales.

Your takeaway: Don’t be afraid to innovate with your products. Whether it’s introducing healthier ingredients, enhancing packaging, or tweaking your product line to align with market trends, innovation can set you apart from competitors.

4. Leverage Strategic Partnerships

Coristine landed LesserEvil’s first major retail partnership with Kroger in 2015. That deal helped the company expand its reach and secure a larger market share. Strategic partnerships like this allowed LesserEvil to grow faster than it could have on its own.

Your takeaway: Partnering with larger businesses or retailers can provide an influx of resources, credibility, and reach. Identify key players in your industry who can help you expand your distribution or co-create products, and build those relationships.

5. Be Scrappy and Resourceful

Coristine’s team had a tight budget in the early days. They bought used equipment at auctions, raised funds from friends and family, and even customized machinery themselves. They painted their factory exterior and did whatever it took to keep costs low while staying productive.

Your takeaway: Especially in the early stages, being resourceful is key. Look for low-cost alternatives and creative ways to stretch your budget. This scrappy approach can help you survive lean times and lay the groundwork for future growth.

6. Invest in Long-Term Growth

As LesserEvil started to stabilize, Coristine continued to reinvest in the company. From expanding production lines to rebranding and adding new product lines, these strategic investments paid off. By 2021, LesserEvil was profitable, and it hasn’t looked back since.

Your takeaway: Don’t be afraid to reinvest in the business as it starts to improve. Whether it’s upgrading equipment, scaling operations, or expanding your marketing reach, these investments are critical to sustaining long-term growth.

7. Adapt to Challenges

LesserEvil wasn’t without its challenges. In June 2024, a Consumer Reports investigation found lead in two of its kid-focused snacks. Coristine and his team responded quickly, removing the problematic ingredients and preparing to relaunch the snacks later in the year. Despite the setback, LesserEvil generated $62 million in net sales during the first half of 2024.

Your takeaway: Every business faces challenges, but how you respond is critical. Whether it’s product recalls, financial issues, or market changes, be ready to adapt and take quick action to keep your business on track.

FAQ: Turning Around a Failing Business

1. What are the first steps to take when turning around a failing business?

The first step is to assess the business’s current strengths and weaknesses. Identify any products or services that are still profitable and any areas where operations or marketing may need improvement. Focus on building around the core strengths and finding ways to eliminate inefficiencies. Branding, operational streamlining, and understanding the customer base should be top priorities.

2. How long does it take to turn a failing business into a profitable one?

The time it takes to turn a business around depends on various factors, including the size of the business, the nature of its challenges, and how quickly changes can be implemented. Typically, businesses can start seeing positive changes within 12-24 months if strategic efforts are consistently applied.

3. What are common mistakes to avoid when trying to revive a failing business?

One of the most common mistakes is changing too much too quickly without understanding the core issues. Overhauling the product or service too drastically, cutting necessary costs, or trying to scale without a solid foundation can further destabilize a struggling business. It’s essential to focus on what works, make gradual improvements, and avoid unnecessary risks.

4. How important is innovation in turning around a struggling company?

Innovation is often a key factor in business turnarounds. Introducing new products, improving processes, or differentiating the business from competitors can drive growth. For example, LesserEvil used healthier ingredients like coconut oil to stand out in a crowded snack market. Finding small but impactful ways to innovate can significantly contribute to success.

5. How can partnerships help revive a struggling business?

Partnerships with larger businesses or retailers can provide critical resources and exposure that a struggling business needs. These collaborations can expand your reach and improve credibility. For LesserEvil, a partnership with Kroger helped them scale, reach more customers, and secure better distribution channels.

6. How can I keep my business afloat during the turnaround process?

Cash flow management is critical during a turnaround. Scrapping unnecessary expenses, negotiating better terms with suppliers, or finding creative solutions like used equipment can help maintain liquidity. Additionally, raising funds from friends, family, or small investors can provide temporary support while you implement changes.

7. What role does branding play in a business turnaround?

Branding plays a significant role in how customers perceive your business. A fresh, relevant brand can attract new customers and build loyalty among existing ones. In the case of LesserEvil, rebranding the company with a more health-conscious, modern image helped align it with consumer trends, which led to increased sales.

Final Thoughts

Turning around a struggling business isn’t easy, but with the right strategies, it’s possible to transform failure into success. Charles Coristine’s journey with LesserEvil shows that by focusing on core strengths, innovating products, and building strategic partnerships, you can breathe new life into a failing company.

If you’re facing a similar situation, use these lessons to create a roadmap for your own business turnaround. For more on Charles Coristine’s success, check out the full story on CNBC Make It.