This week we conclude our article on “Signs that your business is failing”
Underestimating the Role of Technology: It’s important to recognise the impact of technology and its role in determining how and when consumers make purchasing decisions. In a few short years, smartphones and tablets have fundamentally changed the way people shop for, and pay for goods and services.
Businesses that failed to keep up to speed with these changes have simply fallen by the wayside. It’s also crucial to continue to keep informed about technological developments in business systems. For example, do you have a reliable and effective online ordering system or a Client Relationship Management (CRM) system to manage your company’s engagement with clients? Do you have secure payment gateways to facilitate financial transactions between your business, your customers and trading partners?
Many business owners simply fail to keep up with technology which leads to lost opportunities in achieving organizational efficiency, increasing costs of maintaining antiquated systems and lost sales as clients will simply migrate to suppliers who offer easier ways of doing business.
Failure to keep pace with the changing purchasing behavior of consumers is a major reason why many businesses fail.
Your Employee Turnover Is High: A sure sign your business is starting to fail is when your employee turnover rate is high. The reasons why you may see many failing businesses with a high employee turnover is because many business owners believe that the decrease in sales, conversions and overall profits is due to incompetent or inefficient employees. Because of this, they generally fire and replace their current employees in the hope that the “right” people will arrest the issue of declining sales.
When this doesn’t work, they continue to bring more skilled people in to help improve their business. This can lead to a revolving door of disillusioned Sales Managers or Sales Executives as well as disillusioned business owners who wonder why they can’t find the “right people” to sell their product or service.
When employee turnover is high, it’s time to dig a little deeper to find out what’s really going on in the business. In situations like this, it can be useful to engage an external consultant who can work with all stakeholders involved and provide an objective, impartial view without fear of upsetting the status quo. When it’s your business at stake you need to act fearlessly.
When Others Are Noticing Your Business Isn’t Doing Well: Finally, when others are noticing your business isn’t doing well, you know you’re on the track to failure. It’s one thing to notice it yourself, but when others start to see the signs your business is starting to fail as well, this is when you have problems. While this is a bad sign, you can use this to your advantage as well.
If they’re a long term customer, ask them for feedback on what they think about your business, what you could improve, and why they may be looking elsewhere for their products. In gaining this valuable feedback you could have a chance of improving your business greatly and getting it back on track again.
A failing business will have warning signs long before it completely fails. It’s essential to see the warning signs well and truly in advance so you’ll have time to work on fixing them as best as you can.