seven indicators of business failure
TRANSCRIPT
WHAT ARE THE SIGNS MY BUSINESS MAY BE IN TROUBLE?
1. FAILURE TO MARKET
Business
Sales
If you can’t create a market, you’re in the wrong business
2. FAILURE TO ADAPT TO A CHANGING MARKET
If you cannot adapt to change in technology and the way that we communicate, then the internet becomes a ticking time bomb
3. FAILURE TO UNDERSTAND THE NUMBERS(AND MAKE A PROFIT)
Numbers are not just for tax!
Understanding whether the business and each project is making profit helps budget for the future health of the
company
4. FAILURE TO HAVE A LEADER AND A TEAM
A manager needs to lead, but ultimately relies on a team
Mistakes and failure are inevitable when
communication breaks down, key decisions aren’t
made and there is a lack of direction
5. FAILURE TO MANAGE RISK
Foreign exchange
Supplier failureEmployee fraud
Client business failureNew competition
Force Majeure
Failure to protect against exchange rate
movement, over-reliance on one client, supplier or
product line and blind trust in employees
invites business failure
6. FAILURE TO MAINTAIN ADEQUATE CAPITAL
Even if a business is profitable, without working capital completing projects
and covering day to day operations can become
difficult
7. FAILURE TO ADMIT A PROBLEM
Even the best product, with the best plan can be ahead of it’s time
Look beneath the water for the
underlying problems, sometimes you are
best to admit defeat, rather than sinking
more and more into a failing venture
WHAT CAN I DO ABOUT IT?
GET HELP FROM OURBUSINESS RECOVERY TEAM
Special purpose business reviews
Workouts Restructuring Creditor compromises Liquidations Receiverships Voluntary Administrations
GET IN TOUCH
Contact one of our business recovery,
turnaround and liquidation specialists
https://staplesrodway.co.nz/recovery/
Auckland 09 968 9165Hawke’s Bay 06 878 7004Taranaki 06 757 3155Christchurch 03 343 0599Nationwide 09 968 9165