The moment you have decided to start a business, you hoped that it would lead to favorable result. Sadly, not everything ends up the way we wanted to. There are instances in which businesses fail no matter how hard you try to make it work. The good thing though is that there are signs that your business is not heading to the direction you intend it to be. Thus, you will still have time to turn things around and make them work. Here are some of the signs to look out for so you can tell if your business is starting to crumble.
There’s not enough cash reserve
In business, money comes and goes. You will only have money to spend if you make enough money to begin with. However, the life of your business does not only rely on the money that enters and leaves. It is also about the amount that goes into the cash reserve. This means that should anything wrong happen, there is enough backup money to keep things moving. If you don’t have one, it means that your business is already failing. It is on the verge of collapsing.
No one is talking about your business
This is extremely painful, but in today’s age and time, being talked about is a sign of success. If your community doesn’t talk about your business or no one even bothers to give you a review online, you have to be scared. You would rather love it when people hate your business to a point that they rant about it online instead of being apathetic. If they start to not give any thought about your business, then it does not have any appeal at all. You have to stir the pot and keep things moving.
You have no idea when your money is going
Being able to track the flow of money to and from your business is essential. If you fail to do it, then it could really mess things up. Before you know it, you have already lost a lot. You keep paying bills that are overdue and incur penalties along the way. This would make you lose more money that you shouldn’t.
Your employees have a low morale or are resigning
In this difficult economy, people would want to keep their job no matter how much they dislike it. If your employees come to a point when they would rather leave than help you keep everything afloat, then it is an obvious sign you are not going anywhere near success. Your employees have felt that your business is crumbling down so they have the urge to leave rather than be a part of it when it starts to fall.
You always scramble just to pay the bills
If you are always behind when it comes to paying what is due, then there is something wrong with your business. You are either not tracking the flow of income well or you don’t have enough income to afford these monthly payments. This is also true if a huge chunk of your monthly income goes to payment of interests. It only means that you don’t earn enough money to pay everything on time without incurring penalties.
You can decide whether to shut the business down or turn things around. If you have worked hard to make the business running, it is important that you do something to change its fate right now.
Featured and 1st image courtesy of Stuart Miles / freedigitalphotos.net
2nd image courtesy of Stuart Miles / freedigitalphotos.net