Warning signs that your company is in trouble

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      Businesses experience setbacks and challenges every now and then. However, it’s important to be aware of the warning signs that your company is in serious trouble in order to take proactive steps before it’s too late.

      In this article, let’s highlight the tell-tale signs that your business is in a downward spiral. 

      1. The company can’t pay bills on time

      If you are struggling to pay your company’s bills, employees, and suppliers on time, that could be a sign that your business needs a major revamp. A healthy business should be able to easily meet the most basic of functions. If you are struggling to keep up with your monthly financial obligations, it’s time to pay attention to your cash flow and think about how you can grow your income or minimise expenses. 

      2. Clients keep leaving

      Your product or service is the main star of your business, and if your clients aren’t happy with what you have to offer, that’s one of the biggest issues you should resolve immediately. There are numerous factors that affect customer churn. Besides quality, it could be your pricing, customer support, turnaround time, or other factors you should prioritize looking into.

      3. Employees are leaving

      If you’re also experiencing high employee revenue, that could be a serious problem for your business. Employees usually leave if there’s a problem with company culture– either they feel overworked, underpaid, not recognized, or not given enough opportunities for career advancement. Overall, it’s usually poor workplace culture and inefficient management. Work on your employee retention strategy to ensure that you have a happy, productive workforce backing your business up.

      4. Slow or Indecisive Management

      Indecision in leadership is a silent killer because those who hesitate tend to always lose. In business, moving quickly is crucial to seize the right opportunities or solve major crises head on. Chronic delays and paralysis in the face of critical situations can cause a business to collapse. Making prompt and confident decisions and overall agility can definitely make or break a company’s success.

      5. Cash flow issues

      There are a lot of reasons why businesses experience cash flow problems. It could be due to low profits, over-investment, high overhead expenses, overstocking, late payments and unpaid invoices, or poor financial planning in general. It’s important to think about long-term solutions to your cash flow issues. It could be better inventory management, effective cost reduction strategies, improving accounts receivables collection, or diversifying income streams to make your business more profitable and sustainable. If you have urgent cash flow problems, you can also consider working capital loans and other funding solutions through sites like Swoop.

      Stay out of trouble with Swoop

      If you need to improve your cash flow urgently, Swoop offers fast and easy access to funding to solve your immediate problems before they go out of hand. All you have to do is sign up and get matched in no time!

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