Posted on 29 June 2018. by Jones Bahamas
The Clifton Review
The Clifton Review is a tri-weekly column that examines the question of the Clifton project along with the evolution of the war between two billionaires. We covered the start of this war with articles describing the battle over easement rights, the mysterious burning of a home, the blocks to rebuilding, and countless questionable court filings.
While the 2018 series salutes fashion mogul Peter Nygård’s Golden Jubilee detailing his rags to riches story, his incredible business success over these past fifty years and an inside look at how he did it, The Clifton Review will also continue to address current affairs as they relate to the good of The Bahamas.
Clues That Your Business Is In Trouble
By P.J. Malone
It’s Thursday and there is a sinking feeling in the pit of your stomach. Tomorrow is payday, but you are unable to make the payments.
This experience is likely more common than not among many business owners the world over. While here are joys in owning your own business, there are many challenges to overcome, and more often than not, a lot of stress that goes with it.
Before we look at strategies for averting business threats, let’s look at the signs that let you know that your business is in trouble.
An Australian company, Business Turnaround Services, has a record of helping companies in trouble turn their businesses around. They assert, “Timing is crucial when you sense that your business is in trouble, experiencing a financial crisis or underperforming.” They present these clues for determining if your business is in trouble:
1. Your sales fall below your quota or target. If you are struggling to find your next sales and have been experiencing several months of low sales, then you may not get the revenue you need to make profit or to merely break even.… Lack of sales will inevitably translate to low revenue, low profit and an increase of debts to suppliers, financiers and the tax office.
2. Customer retention is low and you are unable to convert prospects. If you are losing more customers than you are gaining, then it is only a matter of time that you will have very few customers to get your revenue from.
3. Cash flow is inadequate. Cash is king. The ability to generate cash is an important key to business success. Without strong, positive cash flow a business will never thrive and grow. While it may be normal for some businesses to experience fluctuations, it is critical to be able to balance the high and low cash flow seasons. If cash flow continues to fall, then the business will not survive.
4. You are unable to convert accounts receivable and inventory to cash. Check the credit terms you are granting for your accounts receivable and check the quality of products being delivered to you. You must be able to convert these promptly to cash as this can also affect your cash flow.
5. Your employees are unhappy and lack motivation. Most employees can sense that the business is in trouble. It can start with salary delays or cutting off of bonuses and benefits. If employees sense that the culture, environment and atmosphere of the company have become bleak, then this will have a direct impact on their productivity and quality of performance. Without the results you are expecting from your staff, your business will suffer.
6. Upper management cannot communicate with the staff. When there is breakdown or failure in communication, management will not be able to identify conflicts in the everyday operations of the business. When conflicts are not identified, they will not be addressed or solved.
7. You dread going to work every day. Your passion for your business is gone. You are always exhausted but you feel that you can never take a vacation because business functions solely depend on you. If your business depends on you alone, then it will never grow further from that. You must have effective management and best practices in place so that even if you are away, you can be certain that your business is healthy and growing in revenue.
8. Your company is just barely surviving. The growing number of unpaid suppliers, outstanding receivables and low number of sales can take their toll on even the most steadfast business owners. Your business is not built to just “survive”, it is meant to grow and prosper. (From: “8 signs that your business is in trouble” www.businessturnaround.net.au)
These experts suggest that you might be able to save your business if you recognize the warning signs early and make the decision to act.
Remember, fashion mogul Peter Nygard acted immediately before the potential threat to his core business could negatively impact profits. You can too and we’ll show you the possibilities.
