Businesses may experience natural highs and lows, so it is not always clear when you are headed for trouble. Here are some things you can watch for that may be signs of serious problems:
- decline in sales
- high personnel turnover
- complaints from customers
- expenses increasing while income is decreasing
- limited markets.
If you discover one or more of these things are happening, you will want to look at the situation more closely. At the same time, be sure you are not experiencing a temporary problem that may be caused by a period of slow growth, seasonal variations, natural product life cycle issues, or temporary business downturns.
Regardless, do not wait too long to pay attention to the warning signs. Ask a trusted adviser, such as your accountant or attorney or an outsider such as your local Small Business Development Center (SBDC) office or a Service Corps of Retired Executives (SCORE) volunteer, to take a look at your situation. Then you can determine what your next course of action needs to be.
