How can you tell if your business is in trouble? These are some tips that will help you.
No new customers
You, as the CEO, should constantly be in touch with potential and new customers. This could indicate that your company isn’t competitive enough or that your employees (including your boss) aren’t performing to their best. This is a severe problem that could lead to your company’s failure unless you find new customers to keep the revenue flowing.
Public exposure is not permitted.
If you don’t have a presence in your local community, if you aren’t listed as a resource within companies in your industry, or if your family isn’t promoting your business to increase awareness and draw customers to your business, it could be a sign that there is something seriously wrong. Your business should be visible, regardless of how small it is to reach your target market.
Repeating mistakes
Although entrepreneurs and CEOs don’t do this intentionally, if your company continues to make the same mistakes without realizing it, it will not be doing well. It is possible to think you have solved the problem, only to find the same result over and over again. This is a red flag, regardless of whether it’s discovered through client responses or analysis of data. It is likely that your business has lost its way if you can’t find the reason for these mistakes.
Unpaid bills piled up
A company that is successful can pay its bills on time. This should be a priority for any business. If you are unable to pay your bills as quickly and efficiently as you used to, your business may be in serious trouble. This does not necessarily mean your business will fail, but it could indicate that you are cash-strapped and have little to no revenue. This is a severe problem that requires immediate attention from the CEO.
Complacency
Your business may be in trouble if you look back at the past year and realize that you haven’t made any changes, such as introducing a better product or service. To keep up with the competition, even top companies must invent. A company can be doomed to complacency.
Employee turnover is high.
Employees who are unhappy will leave. You would then have to spend time interviewing and training new employees, only to see them leave again. This is a dangerous cycle that can lead to a company’s financial ruin.
Heavy debt
It could be a sign your business is in trouble if you’re buried deep in debt. While some debt is necessary, excessive debt can prevent you from making a profit which is your goal. Ask yourself this question: If I don’t have this credit line, will my company survive?
Profits and revenue are not guaranteed.
Your business has been around for a while, and you are not making any revenue or profit. It takes between three and seven years to establish a business. However, if your income remains flat after this period (and continues to do so despite innovative customer feedback interventions to improve your products or services), it may be time to admit that your business might be in serious trouble.
We hope you find these ideas provoking and helpful. Next week we will discuss how to save a failing company.
