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5 Alarming Signs That Your Business Is Failing

5 Alarming Signs That Your Business Is Failing

Starting a business with a great idea doesn’t necessarily mean success. Launching a startup is surprisingly simple, but no one wants a bad start. When a business fails, entrepreneurs sometimes feel that the failure came out of nowhere. The truth is that very few businesses fail without warning. Here are five signs that your business is in serious trouble.

1. Low Sales

The first and most obvious sign that your business is floundering is low sales. This can mean lower than your projections, or lower than last year. For companies to succeed, they need to be making sales; if sales drop off suddenly, then you have a problem.

Turn it around by figuring out what went wrong. Did you introduce a new product that’s missing its target? Can your marketing be improved in an inexpensive way to better spell out your message? Is there a problem in the sales or service sector that can be resolved? Whatever’s going on, you have a limited amount of time to turn it around, so don’t wait.

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2. No Differentiation

For a business to find success in a noisy global market, it needs to be doing something different from the competition. Amazon pioneered two-day shipping, Jamberry offered a fashionable alternative to manicures, Lularoe took into consideration the needs of busy moms to have comfortable clothing and reminded them that they deserve to look beautiful as well.

What does your company do differently? If you can’t give a passionate, cohesive answer in a few sentences, you’ve missed the mark.

Turn it around by reexamining your ideal customer and figuring out what you can offer them that no one else can. Make sure your marketing reflects what you do differently than the competition and always strive to get more done for your customers.

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3. No One’s Talking

There’s nothing worse for a business than silence. If your customers aren’t talking, aren’t leaving reviews, aren’t engaged on social media, then you have a communication problem. After all, if they’re not talking to you, they’re definitely not talking to their friends about you.

Turn it around by understanding why they’re not talking. Are you not asking customers for reviews and reminding them how useful they are, or are they just not impressed enough with your services to talk about them? The two problems have very different solutions—know which one you’re fixing. Ask your customers to connect with your on social media and engage them in conversation about a specific product.

4. Struggles Around Cash Flow

Even though on your company’s profit and loss sheet you’re doing well, you struggle to pay your bills on time, or you find you have too much inventory on hand and have to engage in extreme promotions to make room for new products. Properly managing your cash flow is the single most important thing you can do for your business.

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Turn it around with practices like offering discounts to customers who pay cash or within 15 days, and only buying the inventory that you need, rather than investing heavily in something you’re just positive will take off soon.

5. Saying Things Like “Failure Is Not An Option!”

Here’s the truth of the matter: failure is an option. When the numbers say that 8 out of 10 businesses fail, it’s the worst sort of arrogance to assume that your business couldn’t possibly be one of them. Entrepreneurs and CEOs make mistakes all the time. Why are you exempt?

Usually, new business owners plan step-by-step how to start a company, but sometimes they will look up and realize that their business is headed in the wrong direction. They’ll manage to correct course, right the ship, and steer off in a new and smoother direction. But sometimes, it’s too little, too late. Your customer trust is gone, or your startup cash is depleted, or you’ve traded too heavily on employee morale and it’s all just over.

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In those situations, the way to turn it around is to close things down as gracefully as possible and to figure out what went wrong. Dig deep to find out where mistakes were made, and make sure you understand how to keep the same mistakes from recurring.

The next step is to move on. Find the next idea, do a better job of differentiating, communicate your ideas more clearly, keep your cash flow more consistent. The right idea and the right timing will happen—unless you give up.

Featured photo credit: VIKTOR HANACEK via picjumbo.com

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Margarita Hakobyan

MBA from the University of Utah

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Published on March 25, 2019

How to Find New Growth Opportunities at Work

How to Find New Growth Opportunities at Work

Career advancement is an enticement that today’s companies use to lure job candidates. But to truly uncover growth opportunities within a company, it’s up to you to take the initiative to move up. You can’t rely on recruiter promises that your company will largely hire from within. Even assurances you heard from your direct supervisor during the interviewing process may not pan out.

But if you begin a job knowing that you’re ultimately responsible for getting yourself noticed, you will be starting one step ahead.

Accomplished entrepreneur and LinkedIn Co-Founder Reid Hoffman said,

“If you’re not moving forward, you’re moving backward.”

It’s important to recognize that taking charge of your own career advancement, and then mapping out the steps you need to succeed, is key to moving forward on your trajectory.

Make a Point of Positioning Yourself as a Rising Star

As an employee looking for growth opportunities within your current company, you have many avenues to position yourself as a rising star.

As an insider, you’re able to glean insights on company strategies and apply your expertise where it’s most needed. Scout out any skills gaps, then make a point to acquire and apply them. And, when you have creative ideas to offer, make it your mission to gain the ear of those in the organization who can put your ideas to the test.

Valiant shows of commitment and enterprise make managers perk up and take notice, keeping you ahead of both internal and external competitors.

Employ these other useful tips to let your rising star qualities shine:

1. Promote Your Successes to Your Higher-Ups

When your boss casually asks how you’re doing, use this valuable moment to position yourself as indispensable: “I’m floating on clouds because three clients have already commented on how well they like my redesign of the company website.”

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Tell your supervisors about any and all successes. Securing a new contract or signing a new customer should be a cause for celebration. Be sure to let your bosses know.

2. Cultivate Excellent Listening Skills

Listen well, and ask great questions. Realize that people love to talk about themselves.

But if you’re a superb listener, others will confide in you, and you’ll learn from what they share. You may even find out something valuable about your own prospects in the company.

If others view you as even-minded and thoughtful, they’ll respect your ideas and, in turn, listen to what you have to say.

3. Go to All Office Networking Events

Never skip the office Christmas party, your coworker’s retirement party, or any office birthday parties, wedding showers, or congratulatory parties for colleagues.

If others see you as a team player, it will help you rise in your company. These on-site parties will also help you mingle with co-workers whom you might not ordinarily have the chance to see. For special points, help organize one or two of these get-togethers.

Take the Extra Step to Show Your Value to the Company

Managers and HR staff know that it can be less risky – and a lot less costly — to promote from within. As internal staff, you likely have a good grasp of the authority structure and talent pool in the company, and know how to best navigate these networks in achieving both the company’s goals and your own.

The late Nobel-Prize winning economist, Gary Becker, coined the term “firm-specific,” which describes the unique skills required to excel in an individual organization. You, as a current employee, have likely tapped into these specific skills, while external hires may take a year or more to master their nuances.

Know that your experience within the company already provides value, then find ways to add even more value, using these tips:

4. Show Initiative

Commit yourself to whatever task you’re given, and make a point of going above and beyond.

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Position yourself so that you’re ready to take on any growth opportunities that present themselves. If you believe you have skills that have gone untapped, find a manager who will give you a chance to prove your worth.

Accept any stretch assignment that showcases your readiness for advancement. Stay late, and arrive early. Half of getting the best assignments is sticking around long enough to receive them.

5. Set Yourself Apart by Staying up on Everything There Is to Know About Your Company and Its Competitors

Subscribe to and read the online trade journals. Become an active member in your industry’s network of professionals. Go to industry conferences, and learn your competitors’ strategies.

Be the on-the-ground eyes and ears for your organization to stay on top of industry trends.

6. Go to Every Company Meeting Prepared and Ready to Learn

A lot of workers feel meetings are an utter waste of time. They’re not, though, because they provide face-time with higher-ups and those in a position to give you the growth opportunities you need.

Go with the intention of absorbing information and using it to your advantage — including the goals and work styles of your superiors. Respect the agenda, listen more than you speak, and never beleaguer a point.

Accelerate Your Career Growth Opportunities

A recent study found that the five predictors of employees with executive potential were: the right motivation, curiosity, insight, engagement, and determination. These qualities help you stand out, but it’s also important to establish a track record of success and to not appear to be over-reaching in your drive to move up in your company.

Try to see yourself from your boss’s position and evaluate your promote-ability.

Do you display a passion and commitment toward meeting the collective goals of the company? Do you have a motivating influence with team members and show insight and excellence in all your work?

These qualities will place you front and center when growth opportunities arise.

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Use these strategic tips to escalate your opportunities for growth:

7. Find a Mentor

With mentorship programs fast disappearing, this isn’t always easy. But you need to look for someone in the company who has been promoted several times and who also cares about your progress.

Maybe it’s the person who recommended you for the job. Or maybe it’s your direct supervisor. It could even be someone across the hall or in a completely different department.

Talk to her or him about growth opportunities within your company. Maybe she or he can recommend you for a promotion.

8. Map out Your Own Growth Opportunity Chart

After you’ve worked at the company for a few months, work out a realistic growth chart for your own development. This should be a reasonable, practical chart — not a pie-in-the-sky wish list of demands.

What’s reasonable? Do you think being promoted within two years is reasonable? What about raises? Try to inform your own growth chart with what you’ve heard about other workers’ raises and promotions.

Once you’ve rigorously charted a realistic path for your personal development within the company, try to talk to your mentor about it.

Keep refining your chart until it seems to work with your skills and proven talents. Then, arrange a time to discuss it with your boss.

You may want to time the discussion around the time of your performance review. Then your boss can weigh in with what he feels is reasonable, too.

9. Set Your Professional Bar High

Research shows that more than two-thirds of workers are just putting in their time. But through your active engagement in the organization and commitment to giving your best, you can provide the contrast against others giving lackluster performances.

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Cultivate the hard skills that keep you on the cutting edge of your profession, while also refining your soft skills. These are the attributes that make you better at embracing diverse perspectives, engendering trust, and harnessing the power of synergy.

Even if you have an unquestionably left-brain career — a financial analyst or biotechnical engineer, for example — you’re always better off when you can form kind, courteous, quality relationships with colleagues.

Let integrity be the cornerstone of all your interactions with clients and co-workers.

The Bottom Line

Growth opportunities are available for those willing to purposely and adeptly manage their own professional growth. As the old adage says,

“Half of life is showing up.”

The other half is sticking around so that when your boss is looking for someone to take on a more significant role, you are among the first who come to mind.

Remember, your career is your business!

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Featured photo credit: Zach Lucero via unsplash.com

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