Published By Janet Gershen-Siegel at May 9, 2018
We all recognize that companies downsize, get bought out, declare bankruptcy, or bomb entirely all the time, but it could never happen to you. Right?
Wrong. Nothing in life is set in stone, and it’s prudent to be ready for worst-case scenarios. Look for these eight hints that you’re at a struggling business, and avoid losing out before it’s too late.
Abrupt vision modifications warn that your business is losing its way. If your company’s vision is to sell the greatest widgets, but that suddenly changes to offering the most affordable widgets, then that’s a significant modification.
It’s a foregone conclusion that an executive will read disaster in your business’s future much earlier you can.
Prominent clients leaving are hints that something bad is on the horizon.
Are your best and brightest coworkers leaving for better opportunities? Such exits could mean that your company is going to pieces – especially if they’re not promptly replaced.
Check the details. If the business used to provide sandwiches at all meetings, but they change to snacks or maybe nothing, take it as a warning.
There’s nothing wrong with a company tightening its belt to satisfy its mission, naturally. But employee perks going away without explanation is a cause for concern.
It’s unlikely to expect that every news report, review or article about your business will be 100% favorable. A steady stream of bad press, on the contrary, can stop it in its tracks. Even a slight yet steady trickle of negativity can seriously harm its chances of long term growth. And no media coverage at all? That can really show you’re at a struggling business.
Sometimes you just have to trust your instincts. A rise in office stress, regular high-level, closed-door meetings from which everyone comes out shaken and silent, and a general decrease in openness and communication are all signs of doom.
Do you want an immediate, insider’s look at your business’s general condition? Check out its business credit score. Companies with low business credit scores are felt to be untrustworthy about managing their payments. Dropping scores can harm your business’s chances of obtaining funding down the road, and thus your chances of obtaining paid. You can get any company’s business credit score, as the Fair Credit Reporting Act does not apply.
Companies don’t last forever; none of them are ‘too big to fail’. Know these warning signs so you can get while the getting is good. Share this and tell your friends what you think of how to change things up and live your best financial life.