10 Alarming Signs Your Business Could Be Dying
Businesses, eventually, they die. Not to be harsh, but they die in a sense that the business flopped or failed as a result. Not now however, but businesses will have its time and that bitter fate clings solely to its owners.
Businesses don’t last forever, there’s that, but they can stand a lifetime, two or more if lucky, and that lies on the hands of its management.
If you want to know how to keep your business breezing from generation to generation, etching its name into success and staying there, then check out these alarming signs to save your business from the clutches of bankruptcy. The future is always uncertain.
1) There are more expenses than profit.
Cash flow, we’re talking about the gains over the losses. If you are not earning any profit for your business; no high return of investment for your capital, you spend more than you earn, and sales are just poor, then that’s a serious problem. Money is the lifeblood of your business. The reason it grows is because of the cash flow. If that cash flow is dry, then you are in for a slump. It’s time to get back to that thinking factory to work things out before it’s all too late.
2) The business is not pushing for more.
The lack of innovation, the disinterest in keeping on trends, and the poor understanding of what the audience wants is a detection that your business is about to plummet to its death. If you think you are offering something great to the market yet ignoring what the market is telling you then it’s best not to just think you’re great. Challenge them and offer and sell! Do that by creating innovative ways to your service and by keeping on the trends of your audience. That way, you can discover more for your business and for yourself as a business owner. Push boundaries and don’t limit what you can do.
3) You’re one among the hundreds.
The Philippines is a free market where everyone has the same opportunity to compete. We call this a capitalistic democracy. Often, pure competition is a road kill for most businesses. If you can’t compete, then you’re out. If you are not standing out then the chances for your business to fail is a probable calculation.
Most successful businesses have a niche. They have something unique to offer. This is a strong selling point, determining the Unique Selling Proposition (USP), having to offer something special, something that others do not have is a surefire way to keep your business in the A game.
4) Nobody’s talking money for your business.
There’s no positive feedback for your business, no referrals and no good reviews. Your business has no reputation to draw your customers in. Well, with nobody talking money for your business then its most likely your business is heading to its grave.
What you need to do is to keep the relationship of your customers strong. In business, you befriend everyone. You don’t take sides, you should be neutral because a customer is always a customer. They have the power to make or break you, one customer can lead to a number of referrals, so don’t underestimate who comes into your door.
5) Your employees have poor morale.
To see your employees frowning, well, that’s a bad sign that something is not right with the management. If you want people to work for you, you should keep them always with a positive vibe. Your sailors are there to follow your command as the captain. You choose the right guys, then keep them in the right path.
An employee with poor morale is a disease for the business. They bring in an aura of negativity especially if they become silent thieves. That’s one that you should avoid. So, don’t be just a boss, be a leader. It’s your business at the end of the day.
6) There’s a lack of growth and development.
Poor sales, the absence of innovation, no good publicity, and the growing number of employees laying off, getting fired or resigning, well, it looks like your business is about to get its epitaph! So, keep the guys in suits from coming to take your business into the morgue of the market, always strive for growth and development. Do this by understanding sale strategies, trying marketing techniques, testing the product or service to your audience and being creative with your offers by following a monthly theme or a business plan.
Growth and development is imperative for a business. If there are no signs of that, then expect for the worse.
7) You repeat mistakes over and over again.
Mistakes are good, that’s how you learn, improve and grow. But if the same mistakes are repeated over and over again, such as continuous poor sales, consistent resignation and firing of employees, the rising lists of debts, then you are doing it really wrong.
Take a step back, contemplate, and discuss these things with the right people, the people who you trust, of course! Sometimes you can seek help with your competition. Befriend your enemies and you might learn a thing or two from them. Mistakes are good, we are all products of mistakes but don’t ever be a prisoner of it.
8) It’s the first business.
If this is your first business, you’re likely to fumble a lot. According to a report, 78% of first-time entrepreneurs fail, that gives only a 22% chance of succeeding. Of course, 78% gives you more reasons to worry, no first-time entrepreneurs want their baby investment to die soon. But here’s the catch, the 22% is still a good rate. So, how to be in that succeeding zone? Well, as first-timers, it is best to surround yourself with mentors, with business-minded people who are willing to coach you.Note that every master was once a beginner.
9) You lack focus.
Priorities? Do you prioritize your business above your social life? Well, the reason you venture into the entrepreneur lifestyle is because you want to quit that 9 to 5 job and you get sick of the thought of working for someone else while you earn a meager income. But even if you are your own boss, your own time, you have to give as much as well to your business. The lack of focus can drive your business the wrong direction. Most successful entrepreneurs have worked hours to be that successful. It’s most likely their mind keeps on thinking ways to innovate, to improve and to compete. That’s the mind set that you should have.
10) You are not passionate with your business.
A business is not a joke. This is your work. This should be something you should love doing. Most successful entrepreneurs had worked hard to get to where they are right now and one factor is their passion. It takes time, it takes the love to make your business a success into the market. There’s no overnight success. This is your baby investment, take it time to learn, to grow, to improve and eventually that baby investment will become the grown investment ready to branch out with new challenges.
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