HOW TO FIGURE OUT IF YOUR BUSINESS IS MOUNTING RED FLAGS
Startups are actually like babies and it is heartbreaking to see our babies struggle when we can help them up, your business is no different. Failure in business occurs due to obstacles in our entrepreneurial path. The dreaded failure creeps in like symptoms that eventually result in a destabilization of the health of your business. Unfortunately, you can’t call in a doctor, your business’ health diagnosis lies in your hands. As a business owner, it’s important to monitor the health of your growing company to spot warning signs—a fractured team, negative customer reviews, poor customer retention, and a lack of creative innovation.
Striving in business is pretty normal but how do you figure out when your business is practically struggling at an alarming rate?
Cash Flow Problems
Almost every business will face cash flow issues from time-to-time, particularly if their accounts receivable gets overloaded with late-paying customers. However, if periodic cash crunches become routine, then there may be larger underlying issues, such as the previously mentioned receivables issue, or diminishing sales, lessening profit margin, unproductive use of staff or resources or even excessive debt.
Your employees are unhappy and lack motivation
Most employees can sense that the business is in trouble. It can start with salary delays or cut off of bonuses and benefits. If employees sense that the culture, environment and atmosphere of the company have become bleak, then this will have a direct impact on their productivity and quality of performance. Perhaps, the upper management cannot communicate with the staff.
When the innovative spirit goes away without leave (A.W.O.L)
Startups are known for their innovative and agile approach to business. Creativity, thinking outside the box, and a modern mindset is essential. If you’re not innovating, you’re probably in trouble. Think about how you can make your internal processes more efficient and less costly.
Losing sight of your customer-centric approach
This is a big deal! Losing a customer-centric approach will make you decrease retention, worsen your reviews, and degenerate revenue. You will be unable to develop your product or service to meet the needs of the most valuable customers.