Before now, businessmen and women have been failing out in so many areas. On a regular base, many sole proprietors slipped into the creek bank because of the business downfall.
Meanwhile, there are so many reasons why people fail in their business and I came to understand that one of the reason is that of their (Business Owners) inability to discovering their mistakes and licking holes.
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Now having said this, any business that lacks a proper evaluation may fail without the owner’s awareness. Additionally, it is very rare for a business to die, so it is rarely sudden.
Also, so many other businesses die overnight but are typically drawn-out affairs with lots of warning signs on the decline.
With all these ideas and lots more, then why do many ventures and businesses die every year and almost in every country around the world?
Moreover, almost every business will definitely experience some bundles of financial distress or pressure at some stage and the right keys to survival in this very situation lie in the ability of the owner to diagnose problem areas and take corrective action quickly.
Signs Your Business Is Going To Die
When you notice the following signs, just know it that your business is about to fall.
1. Debt Dependency
Debt Dependency is actually one of the reasons why your business is going to die. Now being over-reliance on borrowed funds to pay loans and meet other business costs (Leases, wages, inventory etc) simply means that your business is at the state of dying sooner enough that you can think of.
Whenever you find it very difficult in paying creditors and some tax obligations and also having a continual need for capital injections and loans, it simply means that your business will soon crash.
Also, you are always selling but don’t collect payments quickly enough and relying on credit cards to cover this period; these are sure signs of financial crisis.
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Now you can make a change so quickly without any hesitation whenever you notice this in your business. You should inject your sick business with a new life by collecting outstanding debts, renegotiating debts, contributing more equity via partnerships or your own money, or selling unused inventory.
2. High Staff Turnover
Now whenever a particular employee leaves, it is an intellectual capital loss, and often the loss of customers in service industries including hairdressing, dentistry, and accounting
“You have to teach someone all over again and that takes time away from growing business,” Korolak says.
All you need to do when someone (employee) leaves you is to survive it and forge ahead with life. You don’t really have a business if it is tied to one person including yourself, and create a culture in which people want to stay.”
So try to work over this very problem so as to avoid seeing your business dying sooner.
3. Steady Price Slashing
When there’s a steady price slashing in your business, it simply means that your business is at the peak of dying. In business, there is apparently no room for relatives and friends.
You should know that it’s a business and not a kind of charity organization. So, do not slash or have a repeatedly slashing in the price of any of your commodity.
4. No new customers
According to Mackenzie G. Iain who was the author of business titles including Results in a Minute, he stated that “One of the earliest sign business is failing is when there have been no new customers for six to 12 months”.
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In addition to that, I’d start by saying that “existing customers drift away for a variety of reasons over the years and if you are not connecting with new ones you are already going out of business,”.
5. Dysfunctional sales
Cian McLoughlin said “Poor pipelines, problems converting sales or trouble retaining customers can quickly sap life from your business and this one of the most important things you should fix very quickly.
Whenever you provide unclearer service of sales, clients and customers will begin to see your as an unserious businessman and this is really a pinch to your venture.
6. Haphazard Accounting
Sadly too many business owners have a head-in-the-sand approach to their business numbers, says Carl Taylor, founder of Business Builders Academy.
Listen, this can be corrected if you act fast to engage an accountant or do more DIY bean-counting. You don’t need to be a math pro, all you just need to know is which numbers are important and what they mean.
So having read these (Signs Your Business Is Going To Die), always endeavor to analyze your business every day to know it’s capacity and functionalities so as to avoid crashing, thanks.