8 Signs That Your Business Is In Trouble ?

Timing is crucial when you sense that your business is in trouble, experiencing a financial crisis or under-performing. It is important to act quickly and decisively to keep away from even greater issues, such as filing for insolvency or bankruptcy and to keep away from legal issues that may arise from trading insolvent or from unpaid taxes and debt. Acting promptly can also save your business from closure.

Your business will show danger signs that it is under stress. Do not ignore these early warning signs. In this article, they speak about the 8 signs that your business is in trouble.




One. Your sales fall below your quota or target. In case you are struggling to find your next sales and have been experiencing several months of low sales, then you may not get the revenue you need to make profit or to merely break even. Having reliable sales projections and a consistent flow of sales is imperative to the growth of any business. Promotion and lead generation must be effective in order to make sure healthy sales and revenue. Lack of sales will inevitably translate to low revenue, low profit and an increase of debts to suppliers, financiers and the tax office.

Two. Funds flow is inadequate. Funds is king. The ability to generate funds is an important key to business success. Without strong, positive funds flow a business will seldom prosper and grow. While it may be normal for some businesses to experience fluctuations, it is critical to be able to balance the high and low funds flow seasons. If funds flow continues to fall, then the business won't survive.

Three. Customer retention is low and you are unable to convert prospects. In the event you are losing more customers than you are gaining, then it is only a matter of time that you will have only a few customers to get your revenue from.

Four. You are unable to convert accounts receivable and stock to funds. Check the credit terms you are granting for your accounts receivable and check the quality of products being delivered to you. You must be able to convert these promptly to funds as this can also affect your funds flow.

Five. Your employees are unhappy and lack motivation. Most employees can sense that the business is in trouble. It can start with wage delays or cutting off of bonuses and benefits. If employees sense that the culture, surroundings and atmosphere of the company have become bleak, then this will have a direct impact on their productivity and quality of performance. Without the results you are expecting from your staff, your business will suffer.

Six. Upper management cannot communicate with the staff. When there is breakdown or failure in communication, management won't be able to identify conflicts in the everyday operations of the business. When conflicts are not identified, they won't be addressed or solved.

Seven. You dread going to work every day. Your passion for your business is gone. You are always exhausted but you feel that you can never take a holiday because business functions solely depend on you. If your business depends on you alone, then it will never grow further from that. You must have effective management and best practices in place so that even in case you are away, you can be positive that your business is healthy and growing in revenue.

Eight. Your company is barely surviving. The growing number of unpaid suppliers, outstanding receivables and low number of sales can take their toll on even the most steadfast business owners. Your business is not built to "survive", it is meant to grow and prosper.

Some final words

Recognition of these early warning signs that your business is in trouble and the decision to act quickly and get the help you need can save your business. It would be helpful to partner with a professional and certified turnaround specialist who can work with you to accomplish a successful business turnaround for your company.

This news story is written by Tom Jerrat for Business Turnaround Services Australia. Business Turnaround Services Australia is a business in trouble specialist and improvement firm that provides business turnaround and recovery services in Sydney and across Australia. Visit businessturnaround.net.au for more details.