TES 025 - 8 Warning Signs That Your Business is in Trouble

In this episode #1 Bestselling Author and Highly Acclaimed business & Entrepreneur Expert, Mel Abraham reveals the 8 signs that your business may be in trouble."What are the things that I look for that might give me an indication that a business is in trouble?"There are 8 things to look forNo Growth or Margin Squeeze: A business is in trouble if it doesn't show trends in growth. The increase should not only be in revenue but also in profit. If it is lacking, the business can be considered to have a problem. We need to go back and evaluate what is causing it.Low Productivity: In business productivity is key either form an equipment, people or attitude perspective. We have to see how people treat customers, team members and each other. Challenges in having the right attitude means that we need to separate the people and understand the cause or dynamics at play.Loss of Market or Concentration: Profits will decline when there is erosion in market share and that is not a healthy sign. We need to look at the cause behind our customers leaving us. Another side of it is when concentrations occur. That is when a single customer or employee provides the maximum business.Unpaid Taxes: When businesses start to fail they stop paying their taxes. The taxing authorities will always be there to take their share in your business. The government will come after those taxes any way. So, it is better that you pay the bills.Eroding Capital: The business can't be considered self-sustaining when assets continually shrink. It shows that the operations of the business are costing more than what is generated. Re-evaluate to keep everything at bay.Pricing Pressures: With competition there is bound to be pricing pressures. It is necessary to make us distinct from the competition by keeping ourselves state of the art and having a leading edge. Only then will we be able to have the desired margins.No Strategic Plan: A business should have a strategic plan. Think through the risks and benefits from all possible perspectives so that everything is analyzed strategically. Plan for the future and take actions.No Formal Measurement System: A challenge with businesses is measuring their performance regularly. It should be done to make adjustments for maintaining growth. Without formal measurement systems in place, a business cannot be steered towards the right direction.___________________________ABOUT MEL ABRAHAMMel is the founder of Business Breakthrough Academy and Thoughtpreneur Academy where he helps entrepreneurs bring their businesses to the world and build the lifestyle that they want.