There is a thin line between knowing when your business is experiencing a minor setback, and when you need to rethink your entire business strategy, because it could be failing. When your business is simply having a setback, you would have to only focus on the cause of this and attempt to rectify it. But when it is the latter, chances are you might have to halt your entire business processes, and rethink everything.
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A business, just like a human body, gives signs when it is experiencing a major breakdown. Here are 5 notable signs your business gives when it is failing.
It is not independently sustainable, financially
This means that your business lacks the means to survive on its own without either tapping from your personal resources, or external sources. You are always unable to pay the bills, like salaries, product expenses, production requirements, taxes and every other financial obligation in time. This might be due to a lack of financial management or system. You might be a victim too, where you are being owed ridiculous amounts of money, hence, your inability to meet up. This might be pointing out to you that your business idea is not viable, and people are not willing to invest in it. Or it is a marketing problem. You need to do adequate research to decipher exactly what the challenge could be.
Low staff retention
What is the highest length of period a staff has worked with you? When it is constantly below 6 months, it is a huge cause of concern. Although, it is great for people to move on and do greater things with their lives, it shouldn’t be the habit of people whom you have trained and invested in to leave within short periods, without you reaping a turnover from your investments. To solve this, you might need an objective analysis into why staff do not want to be retained in your business. What do they mostly complain about? Are they growing with you? Are they overworked? A simple assessment might just be the solution to this predicament.
Loss of key customers
Are you constantly losing your key customers? Why do they leave? A customer is the lifeline of a business. Although, customers come and go, it becomes a problem if it is a common occurrence. You need to figure out why they do not stay, and how you can make them to. You might consider discounts, bonuses, incentives that have been proven to help keep customers and refer you to your network.
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Drifting away from business objectives
There is a fundamental problem with your business if you cannot explicitly specify what problems you solve and why you are needed. You must be able to articulate your business objectives and your unique advantage. More importantly, you must be able to reconcile your business objectives with the operations ongoing in your business.
There is no definite business structure
The structure is probably one way to determine if a business will be long term or otherwise. Structure encapsulates management of your staff, financial management, customer service operations, delivery and distribution channels, payment structure, board of directors and business advisers, among many other things. There needs to be a structure that enables effective business operation. If this is absent, no matter how much profit is currently being made from a business, it will only be a matter of time before the business crashes.
Are you currently experiencing any of these symptoms? What have you done to resuscitate your business thus far? Your business is really your primary concern. Until you take responsibility for all of its results, you might never be able to grow it to a place of satisfaction. Start by identifying all the current loopholes your business has, and build it again from the ground to the top.
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