At some stage during your business journey things are going to go pear shaped, most people result to denial at this stage, and it only digs them into a deeper hole. Here are seven tell tale signs your business is approaching a rough patch:
1. After two years and still no profit, then something is wrong with your business model. Try the three R’s Rethink, Reevaluate and Relaunch.
2. When you begin to notice you have excess amount of your goods, it means you are probably loosing customers to a competitor who either is selling at a cheaper price or just has better quality. This doesn’t mean you should close up shop just yet, do some research; go to you competitors buy that item whatever it is and compare it to yours. If it’s the same one your selling, then unlucky you, you’ll have to work even harder. Cut unnecessary cost so you can lower you price or go find better quality.
3. If an employee suddenly becomes inquisitive and interested in the business, be alarmed, be very alarmed. He or She knows the business is on its last legs and are confident they can duplicate the business and trust me, it would be their pleasure to deal you the final blow.
4. If you as a business owner relies on an outside income from another job to handle business expenses, then consider your business toast. Having a job while you start-up is a whole different scenario and I advice that but if it continues, you are depriving your business the attention it needs to become viable.
5. Are you borrowing money to pay of other bills? Business owners have an uncanny ability to instill a false sense of security in themselves, thinking they can turn any situation their in into a positive one instantly and pay of any creditor.
6. Poor customer service can single handily terminate a business, you have to lead by example here; when your employees see the way you interact with your customers, they will follow.
7. Employee Moral. The first people to know your business is in trouble are your employees, they’ll hang in there as long as they can, but trust me they won’t be going down with the ship. Have weekly meetings and discussion with them and value their opinions, they usually are the ones who make first contact with customers.
