What are the most common signs of business failure?

Accepting that your business is struggling and taking the time to identify the most prominent issues are crucial first steps to rescuing a business and formulating a rescue plan or business turnaround strategy.

Many business owners struggle to admit that their business is failing and end up leaving it too late before deciding to take action. All too often this leads to liquidation by an insolvency practitioner or administration when other business turnaround options and alternatives are available from Corelco.

The warning signs

These are some of the key indicators that your business is struggling:

A persistent feeling of stress. Spending more time putting out fires and dealing with stress than working on company growth is a big sign that something is wrong. Obtaining professional help to create a tailored, long-term strategy is vital to overcoming this issue.

• You feel you are having to micro-manage cash flow. Cash flow can be a reliable way of assessing your business’ health. If your cash flow is regularly low, it could signal large problems to come. To increase the likelihood of business survival, it is important to assess whether your prices are set correctly, whether you are targeting the correct audience, and whether you have unnecessary expenses.

• You feel as though risks associated with your business are rising. There are many reasons for this to occur. An in-depth analysis of your business, with the help of business turnaround professionals, is usually the best way to come up with a strategic turnaround approach and to prevent the risks from becoming reality.

• You are receiving fewer customer enquiries. If your business sales are diminishing and numbers of new and returning customers are rapidly depleting, it’s important to take action. Asking customers for feedback and increasing your advertising are two ways to attempt to bounce back.

• Your marketing efforts are no longer producing the expected results. Getting your company’s message noticed requires thought and preparation. Not having a clear idea of who your target audience is and how best to reach them results in your marketing efforts not having the desired effect, which can be a costly mistake to make. If your marketing efforts were previously resulting in positive outcomes, it is vital that you determine what has changed or whether it is a case of your messaging not adapting appropriately over time.

• You are getting behind on bills. Not being able to pay bills on time brings with it an array of problems. From angry creditors to late payment penalties, this is something that needs dealing with professionally and quickly. Click here for help with negotiating with creditors.

• You are running out of new ideas. A lack of passion and innovation can be extremely damaging for a business. Seeking professional assistance and creating a long-term strategy can be the best way to get out of this situation.

• You repeat mistakes. Making the same mistakes time and time again signals that you are not taking the right course of action when it comes to rectifying prominent issues. It is important to understand what is going wrong and why, and then to come up with a clear-cut plan for avoiding it in the future.

• You have a high staff turnover rate. Staff turnover is part and parcel of owning any business. However, an excessively high turnover rate is something that needs fixing. Not only does it mean that your employees are not getting an appropriate amount of job satisfaction, but regularly replacing and retraining staff is a hindrance to any business.

Corelco will act swiftly and decisively to stabilise your business’ situation, create realistic turnaround strategies and potentially avoid liquidation, insolvency or administration.

Call Corelco on 0203 773 1417