TES 025 - 8 Warning Signs That Your Business is in Trouble - a podcast by Mel Abraham

from 2015-07-01T13:35:11

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In this episode #1 Bestselling Author and Highly Acclaimed business & Entrepreneur Expert, Mel Abraham reveals the 8 signs that your business may be in trouble.


"What are the things that I look for that might give me an indication that a business is in trouble?"


There are 8 things to look for



  1. No Growth or Margin Squeeze: A business is in trouble if it doesn't show trends in growth. The increase should not only be in revenue but also in profit. If it is lacking, the business can be considered to have a problem. We need to go back and evaluate what is causing it.

  2. Low Productivity: In business productivity is key either form an equipment, people or attitude perspective. We have to see how people treat customers, team members and each other. Challenges in having the right attitude means that we need to separate the people and understand the cause or dynamics at play.

  3. Loss of Market or Concentration: Profits will decline when there is erosion in market share and that is not a healthy sign. We need to look at the cause behind our customers leaving us. Another side of it is when concentrations occur. That is when a single customer or employee provides the maximum business.

  4. Unpaid Taxes: When businesses start to fail they stop paying their taxes. The taxing authorities will always be there to take their share in your business. The government will come after those taxes any way. So, it is better that you pay the bills.

  5. Eroding Capital: The business can't be considered self-sustaining when assets continually shrink. It shows that the operations of the business are costing more than what is generated. Re-evaluate to keep everything at bay.

  6. Pricing Pressures: With competition there is bound to be pricing pressures. It is necessary to make us distinct from the competition by keeping ourselves state of the art and having a leading edge. Only then will we be able to have the desired margins.

  7. No Strategic Plan: A business should have a strategic plan. Think through the risks and benefits from all possible perspectives so that everything is analyzed strategically. Plan for the future and take actions.

  8. No Formal Measurement System: A challenge with businesses is measuring their performance regularly. It should be done to make adjustments for maintaining growth. Without formal measurement systems in place, a business cannot be steered towards the right direction.


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ABOUT MEL ABRAHAM


Mel is the founder of Business Breakthrough Academy and Thoughtpreneur Academy where he helps entrepreneurs bring their businesses to the world and build the lifestyle that they want. Mel is one the most sought after entrepreneurial mentor and strategic thinkers of our time. Unlike many other so called “business coaches”, Mel has lived everything he teaches and continues to do so. Mel has built, bought and sold numerous multimillion-dollar businesses for himself as well as his clients. As the author of The Entrepreneur’s Solution: The Modern Millionaire’s Path to More Profit, Fans & Freedom Entrepreneur, Mel’s strategies have helped build thousands of businesses and have generated hundreds of millions of dollars for his clients, ranging from large corporations to startups and small family-owned businesses.


Mel is a true believer in the entrepreneurial way of life and says that this “new frontier” is the paradigm that will shift society from simply existing to living life bigger, bolder and on their own terms.


Meet Mel at http://melabraham.com/


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THE ENTREPRENEUR'S SOLUTION


The Entrepreneur's Solution is a weekly entrepreneur, business, wealth and lifestyle show where entrepreneur, speaker and author Mel Abraham reveals all of his business and entrepreneur building strategies. Mel is one of our time's most sought after mentors and speakers that not only teaches but also lives what he teaches. Discover how to design, create and build your business so it gives you the life and lifestyle you want.


Subscribe to the free entrepreneurial podcast here: http://melabraham.com/podcast


The Entrepreneur's Solution Blog on Tumblr: http://melabraham.com/blog


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