Signs Your Business May Be in Trouble?

There are several telltale signs that your business may be in trouble and you sooner you accept the facts, the better.  As an owner or director of a company, it is your responsibility to stay informed of the current state of the business.  All too often companies take a passive approach and do not deal with problems quickly and aggressively enough.  Waiting until it is too late to make changes can mean insolvency/bankruptcy.   

One of the signs that your business is not healthy is failing to meet sales quotas or targeted goals for several months in a row.  Another cause for concern is not retaining current customers, while at the same time, not attracting new ones.  Continuing in this direction will eventually catch up with the business and can lead to serious cash-flow problems that create an inability to pay creditors on time and meet payroll obligations. 

Many problems companies experience can be attributed to the lack of a solid business plan.  This is the time to take a hard look at the company’s budget and go over it line item by line item.  Make sure your whole team as well as the Board of Directors are meeting regularly and really tackling the serious problems that are ahead of you.  Put a realistic plan in place and stay on course. 

On a personal note, examine your own compensation package and that of the other executives.  It may be that salaries have risen faster than the business can presently handle and they need to be renegotiated.  Communicate with the entire staff regarding the current difficulties that the business is going through and try and get them onboard to help move forward. 

Furthermore assess the company’s day-to-day operations to ensure you are running lean.  Look into selling any surplus or unproductive equipment or machinery.  It can be a good way to put more cash into the business to pay off creditors or to make strategic investments to improve the company’s outlook.  

In business for over 60 years, Rabin Worldwide is an industrial auction and real estate investment company, with a focus on the acquisition and sale of industrial equipment and facilities around the world. In addition to being specialists in providing companies with expert asset valuation and asset recovery services, we also run an in-house commercial real estate investment and management company.  Rabin Worldwide is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.