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5 Alarming Signs That Your Business Is Failing

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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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Last Updated on November 15, 2021

20 Ways to Describe Yourself in a Job Interview

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20 Ways to Describe Yourself in a Job Interview

“Please describe yourself in a few words”.

It’s the job interview of your life and you need to come up with something fast. Mental pictures of words are mixing in your head and your tongue tastes like alphabet soup. You mutter words like “deterministic” or “innovativity” and you realize you’re drenched in sweat. You wish you had thought about this. You wish you had read this post before.

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    Image Credit: Career Employer

    Here are 20 sentences that you could use when you are asked to describe yourself. Choose the ones that describe you the best.

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    “I am someone who…”:

    1. “can adapt to any situation. I thrive in a fluctuating environment and I transform unexpected obstacles into stepping stones for achievements.”
    2. “consistently innovates to create value. I find opportunities where other people see none: I turn ideas into projects, and projects into serial success.”
    3. “has a very creative mind. I always have a unique perspective when approaching an issue due to my broad range of interests and hobbies. Creativity is the source of differentiation and therefore, at the root of competitive advantage.”
    4. “always has an eye on my target. I endeavour to deliver high-quality work on time, every time. Hiring me is the only real guarantee for results.”
    5. “knows this job inside and out. With many years of relevant experience, there is no question whether I will be efficient on the job. I can bring the best practices to the company.”
    6. “has a high level of motivation to work here. I have studied the entire company history and observed its business strategies. Since I am also a long-time customer, I took the opportunity to write this report with some suggestions for how to improve your services.”
    7. “has a pragmatic approach to things. I don’t waste time talking about theory or the latest buzz words of the bullshit bingo. Only one question matters to me: ‘Does it work or not?'”
    8. “takes work ethics very seriously. I do what I am paid for, and I do it well.”
    9. “can make decisions rapidly if needed. Everybody can make good decisions with sufficient time and information. The reality of our domain is different. Even with time pressure and high stakes, we need to move forward by taking charge and being decisive. I can do that.”
    10. “is considered to be ‘fun.’ I believe that we are way more productive when we are working with people with which we enjoy spending time. When the situation gets tough with a customer, a touch of humour can save the day.”
    11. “works as a real team-player. I bring the best out of the people I work with and I always do what I think is best for the company.”
    12. “is completely autonomous. I won’t need to be micromanaged. I won’t need to be trained. I understand high-level targets and I know how to achieve them.”
    13. “leads people. I can unite people around a vision and motivate a team to excellence. I expect no more from the others than what I expect from myself.”
    14. “understands the complexity of advanced project management. It’s not just pushing triangles on a GANTT chart; it’s about getting everyone to sit down together and to agree on the way forward. And that’s a lot more complicated than it sounds.”
    15. “is the absolute expert in the field. Ask anybody in the industry. My name is on their lips because I wrote THE book on the subject.”
    16. “communicates extensively. Good, bad or ugly, I believe that open communication is the most important factor to reach an efficient organization.”
    17. “works enthusiastically. I have enough motivation for myself and my department. I love what I do, and it’s contagious.”
    18. “has an eye for details because details matter the most. How many companies have failed because of just one tiny detail? Hire me and you’ll be sure I’ll find that detail.”
    19. “can see the big picture. Beginners waste time solving minor issues. I understand the purpose of our company, tackle the real subjects and the top management will eventually notice it.”
    20. “is not like anyone you know. I am the candidate you would not expect. You can hire a corporate clone, or you can hire someone who will bring something different to the company. That’s me. “

    Featured photo credit: Tim Gouw via unsplash.com

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