5 Business Warning Signs
In addition to our interesting as ever newsletter, I will touch on something we feel is important.
We see a number of business owners and managers who are far too busy in their business, not seeing the larger picture of where the business is headed. These businesses often have no long term strategic goal and just amble along. The business owners are stressed all the time and seem to make little headway even though they are working very hard.
Below are some of the common warning signs:
- A reduction in revenue.This seems obvious but often the business is not aware of the revenue reduction as financial records are poorly maintained. The revenue reduction is only noticed when there is no cash in the bank and at this stage the business is already in ‘catchup’ phase.
- Shortage of cashflow.In addition to the point above, some businesses are poorly modelled where the profit margin is too small. In some cases each sale results in a loss due to overhead costs that weren’t factored into the sale price! Send super price sensitive customers to your competitors, let them damage your competition!
- Have accurate and robust reporting.It’s very hard to achieve a goal if you can’t track your progress in reaching the goal. We specialise in creating reporting and measurement systems (which we think are amazing!). We can demonstrate the system to you if you are interested to see how your business can benefit from it.
- Poor management.Recently Worrells (insolvency experts) ran a seminar highlighting how poor management was a substantial factor in nearly all insolvencies. It is important to manage management before the situation is out of control.
- Optimism but no courage.It’s great to be optimistic and enthusiastic but enthusiasm alone will not save the business and can blind the owners to the reality of the situation. Courage is required to realise the position the business is in and then to make important and difficult changes to set a new course.
If you feel that any of these points apply to you or someone you know then please seek assistance while the business can be saved.
This newsletter includes the following interesting articles:
- Business resolutions for 2015
- Managing your cashflow
- Making fringe benefits beneficial
- Get on top of your record keeping
- CGT concessions
- Make your workplace a productive environment
- Business insurance
- Holding a great business event
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