Most of the time businesses don’t go under overnight. It happens gradually and signs begin to show that things aren’t going according to plan. Sometimes an idea never does work and so much time can be wasted on something which just won’t work.
Below is a list of things that may act as warning signs that your business is going under –
1 – Your product is not selling
This is probably an obvious statement but perhaps your products are not as interesting to customers as you may have thought. Sure, it seems great to you but it’s not doing what it supposed to…sell.
On the other hand, there could be strong demand, but your approach is ordinary. Being in strong demand also comes with lots of competitors and it can be difficult breaking through a saturated market.
2 – Your focus is on more than one product
When starting out it is easy to get distracted and begin trying out different avenues and angles of entrepreneurial ideas. Avoid doing this and begin focussing on a single venture. Put your heart and soul into it. One great business idea can be better than 10 businesses that don’t lead anywhere.
3 – Poor business model
This can happen when not enough research or effort was put into the business model. The business model along with the business plan should be aimed and developed at bringing in income streams. If this lacks the main functionality then there’s probably only one direction where your business is headed.
Sometimes when the business model is tested and its proving to be failing then certain tweaks need to be applied. This evolving process is essential at different life cycles of the business.
4 – You’re not taking a salary
If you haven’t taken a salary in months and struggle to pay your employees, then that would be an indication the business is failing. This is definitely problematic.
5 – Burnout
This is a major problem in most startups and can lead to the downfall of a company. As an entrepreneur, it often happens that he or she wants to be involved in all aspects. This can be in accounts or dealing with clients, being in production, or even the marketing aspect of the business. This can have serious effects on the business. It’s no secret that to be a good entrepreneur and to have a smooth running of the business then tasks would need to be delegated.