By: Ademuyiwa Oluwakemi
Little wonder how businesses collapse unexpectedly in recent times. Not without warning but owners often ignore the yellow cards and continue playing recklessly till the red card is disbursed. I have seen a lot of businessmen and women whose focus is centered on earnings rather than management.
Below are 5 signs your business is on a downslope:
Have customers gone?
The central focus for any business is to serve a need. You started your business to satisfy a particular want or desire from your target audience. Now, you have a running business, you must put your clients into consideration. Remember your business exists because of them. Do you still have loyal customers? When last were you recommended? In the last month, have you been patronized by a newbie? If your response to these questions is negative, take that as your first and most important yellow card. With fewer customers at your doorstep, your business growth isn’t certain. Try to work out your setbacks and improve the quality of your goods/services to attract customers. Remember that they are always right.
Shallow marketing
A business with the vision to serve a global purpose wouldn’t be promoting its products on the surface. Do people know about your business? Business owners often make the mistake of entrusting this skill to inexperienced persons, neglecting professionalism. This aspect of the business is usually treated as less important compared to others. What kills a business is when no one is aware of your offerings. With marketing, you can reach as many audiences as possible. But when you are not active in marketing, no good relational skills, how then do you expect to have more customers? You have to do more than talk to a few people. I went to a business conference and the speaker said that entrepreneurs are speakers. So, if you can’t speak well about your business, it’s a no-no deal. If people aren’t well informed about your business, that means no customers, no sales, no income.
Cash flow troubles
A lot of businesses have collapsed because of cash flows. Most times, it is usually a problem of debts. Loans might have been requested and yet to be repaid. Some other businesses collapsed for lack of bookkeeping. Many are short-sighted to the benefits of keeping books. It helps to keep track of cash in and outflows. You can easily know when you are making a profit or loss. Business owners often go into a new year without a proper budget. A budget should include tax payments. When you plan for this, you won’t have problems with the force. Many stores are closed down because of failure to pay tax. Some are closed because they are collateral.
No branding
This might seem like the least downsloping signs for your business but without a brand, you might not be convincing enough for patronage. I would rather visit a restaurant that serves hot meals than any other. For example, I visit a certain supermarket monthly because they have everything I need. They always provide quality and affordable products and to top it all, their customer service is intriguing. I always look forward to going there. Is there anything unique about your business? Why is it different from your competitors? Is there anything that makes your customers want to come back? You need to consider this. If you don’t have a brand on your product or service, you might just piss your clients off. Trust me, people love quality and unique things. You are going to be having competitors, their strengths should be considered. Find yours today.
Inability to pay the proletariats
The proletariats are your workers/employees. This is a major turning point for your company. When you can’t pay your employees anymore. You can’t hire new ones. Your employees are no longer believing in your vision. Note that your business is going down the drain. Here, it means you are running out of funds and you might be forced to let your workers go. At this stage of your warning card, it is usually tough for many businesses to bounce back from here. With no income generation and the inability to pay workers, this is the real deal. When you are here, know that the red flag is closer than you can imagine.
It is not dignified to say you once had a business. If you are seeing the aforementioned signs, know it’s time to get serious with business management. Set up an invoice, hire a bookkeeper if you are incapable, prepare a monthly or annual budget (tax payment inclusive), be intentional with marketing and be friendly with your customers. Improve your product/services in specified areas. Plan now to secure the future. Benjamin Franklin says: “if you fail to plan, you are planning to fail! “
