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BLATANT SIGNS YOUR SMALL COMPANY IS GOING DOWNHILL

Businesses are a little bit like ice creams on a sunny day – they don’t last forever. Either they melt in the heat or get eaten. Either way, the outcome is rarely good long-term.

Eventually, therefore, you’ll find your business on shaky ground. Something will change (usually technology, regulation or consumer tastes), and your firm will start to go downhill.

The trick is to recognize when circumstances conspire against you so you can take action to mitigate the fallout.

There is no shame in admitting your business has a problem. Just look at what happened to Apple in the early 1990s. The company nearly went bankrupt after becoming bloated and delivering sub-par products to consumers that destroyed its brand and reputation.

The trick is to identify issues early so that you can respond effectively. Here are the signs and what to do.

You Don’t Have A Plan To React To New Regulations

Recently, there have been regulatory changes to malpractice law that are having knock-on effects on medical services across the country. Whereas practitioners would have once received cover through professional bodies, many now have to source it separately. The rise in demand for sonographer insurance is one symptom of this issue.

These firms are, therefore, in significant danger if they don’t change their current insurance options. A single claim by a patient could drain their finances and prevent the business from continuing long-term.

As this example makes clear, adapting to regulatory changes should be something that companies do before the new rules take effect. It should be a core part of the business strategy.

You Aren’t Building An Email List

Email lists are fundamental to the success of modern businesses, and yet, relatively few enterprises are actively building them. Most companies are happy relying on established social networks, but this brings risks of its own. TikTok’s future, for example, looks uncertain.

Email, however, is something that is going to be with us for the long-term. If any platforms go down or block you from uploading content, you can keep your audience going with updates to their inboxes.

Your Best People Are Leaving

One of the reasons you could tell that Tesla was on shaky ground in 2017 was the number of people leaving the company. Finance directors and senior managers were continuously bailing on the operation because they were concerned about its cash position. Fortunately, the eclectic carmaker managed to turn things around, but it was a close call.

Something similar could be happening in your organization. Top people could be leaving, and you’re left all the poorer as a consequence. If you notice your best employees leaving for pastures new, it is a clear indication that things are seriously wrong.

You Can’t Achieve Long-Term Profitability

You need at least five years of positive earnings to confirm that your business model works. But if you’re continually dipping into the red and you’re not investing heavily in growth, it usually means that your company isn’t viable. Either you need to change something or exit fast before you do even more financial damage to yourself and others.

Blatant Signs Your Small Company is Going Downhill