2Pure blog – 5 signs your business is at risk


2pure , Online Publishing __ Friday, August 23, 2013 1:23 PM - Rudolf Jabre 5 signs your business is at risk Many entrepreneurs and small business owners usually make the mistake of focusing on what is needed to launch a startup, and disregard how to make it run effectively. This fact is backed by a high rate of failures of many small businesses. What entrepreneurs miss more often that starting a business is not equivalent for success. Practical experience has shown clearly that it does not always work out that way. As an entrepreneur, I have recorded along the years 5 signs, which will alert you that your business is at risk. 1. Customer orders are slowing down. Whether you’re offering a product or a service, your interaction with customers is crucial, so if sales are diminished and customers are starting to go elsewhere, then this is a big sign that Business is in trouble. Without the flow of money, any business will begin bleeding profusely in the bank account department, and without credit, there’s nothing to keep them flooded during those difficult times. 2. Failure to pay creditors. Many businesses endure on various debts from trusted suppliers. By the time a business is unable to meet its debt obligations to its suppliers, the supply line could dry up. When that happens, the business will gradually slog to a halt. Meeting creditor obligations is therefore very important to the survival of any business. If your business can no longer meet its creditor obligations, it is a clear sign that the business is in serious trouble. 3. Trouble in controlling expenses and conserving cash. Does your company have a cash plan? Are all your expenditures necessary for your business? If your company is spending cash on fancy cars, equipment that is not needed TV ads that are generating no measurable return, it is a sign that you’re heading straight to the cliff. 4. The bills are piling up. One of the major red flags warning you that business is going under is if you never paid your company’s bills on time, specifically those for raw materials. If you’re receiving constant calls from vendors about outstanding invoices, it’s a good sign that something is wrong with your company’s finances. 5. Failure to break-even and make profit. From your business plan, if after a specified period of time you keep putting in resources and you are not getting enough out to justify the resources you are putting in, you know it is time to review what you are doing. There could be things you may be required to change to get the business back on track. You must therefore attempt to always keep a keen eye on this signal. The business plan also indicates when your business is expected to turn a profit. If this period is exceeded and you are still not turning a profit, you should suspect that something could be wrong somewhere. Failure to make a profit is a clear sign that it is time for you to review your business for better performance. Knowing in time when your business has a problem is good because it offers you the chance to feint total failure if you still can. Whenever you notice any of these 5 signs, it signals a wake-up call for you to do something very quickly to save your business and get it back on the right tracks towards success.

2pure , Online Publishing __ Friday, August 23, 2013 1:23 PM - Rudolf Jabre

5 signs your business is at risk

Many entrepreneurs and small business owners usually make the mistake of focusing on what is needed to launch a startup, and disregard how to make it run effectively. This fact is backed by a high rate of failures of many small businesses. What entrepreneurs miss more often that starting a business is not equivalent for success. Practical experience has shown clearly that it does not always work out that way. As an entrepreneur, I have recorded along the years 5 signs, which will alert you that your business is at risk.

1. Customer orders are slowing down. Whether you’re offering a product or a service, your interaction with customers is crucial, so if sales are diminished and customers are starting to go elsewhere, then this is a big sign that Business is in trouble. Without the flow of money, any business will begin bleeding profusely in the bank account department, and without credit, there’s nothing to keep them flooded during those difficult times.

2. Failure to pay creditors. Many businesses endure on various debts from trusted suppliers. By the time a business is unable to meet its debt obligations to its suppliers, the supply line could dry up. When that happens, the business will gradually slog to a halt. Meeting creditor obligations is therefore very important to the survival of any business. If your business can no longer meet its creditor obligations, it is a clear sign that the business is in serious trouble.

3. Trouble in controlling expenses and conserving cash. Does your company have a cash plan? Are all your expenditures necessary for your business? If your company is spending cash on fancy cars, equipment that is not needed TV ads that are generating no measurable return, it is a sign that you’re heading straight to the cliff.

4. The bills are piling up. One of the major red flags warning you that business is going under is if you never paid your company’s bills on time, specifically those for raw materials. If you’re receiving constant calls from vendors about outstanding invoices, it’s a good sign that something is wrong with your company’s finances.

5. Failure to break-even and make profit. From your business plan, if after a specified period of time you keep putting in resources and you are not getting enough out to justify the resources you are putting in, you know it is time to review what you are doing. There could be things you may be required to change to get the business back on track. You must therefore attempt to always keep a keen eye on this signal. The business plan also indicates when your business is expected to turn a profit. If this period is exceeded and you are still not turning a profit, you should suspect that something could be wrong somewhere. Failure to make a profit is a clear sign that it is time for you to review your business for better performance.

Knowing in time when your business has a problem is good because it offers you the chance to feint total failure if you still can. Whenever you notice any of these 5 signs, it signals a wake-up call for you to do something very quickly to save your business and get it back on the right tracks towards success.