Most folks know someone who is either employed by a business that’s struggling financially, or we all know a business owner who isn’t doing so well.
Unfortunately, libraries and bookshops are fully of positive literature on “How to achieve Business” and “Make Money in 60 Seconds”, but there are little or no references to “How to understand when to shut the Doors”.
Have a glance around, even search in Google. you’ll find thousands of articles and books all telling you ways to achieve business and make million’s before you’re 25. However, i’m always surprised at the shortage of reference material telling business owners how it’s . The cold hard facts – what if your business is failing – what does one do? And just how difficult it’s running a business and the way many actually do fail.
So, may be a failed business owner a failure? No, not in the least . actually many psychologists will tell you any entrepreneur must fail before they succeed because it is that the only way they’re going to learn.
However, this doesn’t ease any immediate pain or help a business owner out of a hole.
In 2010/2011, suicide rates increased by 15% for Business Failures. Depression one can sink into as a results of a failed business is usually too dark for them to urge out of. The guilt one feels and therefore the pressure and stress are often life changing, and sadly for those with families and friends…sometimes life ending.
There are very clear signs that a business is in trouble financially. i’m not getting to cover company thefts or fraud. What i’m writing about, during this article, is that the average joe who’s business is simply not viable anymore.
It will be a harsh reality for a business owner to face. Often is that the case that friends, employees and family know the business has failed before the owner is willing to simply accept it. We invest equally of ourselves in our business. We become our business. From the minute we awaken , to the minute we attend sleep, it becomes our primary focus. to possess that end has been likened to the death of a beloved , and one must be allowed to grieve.
So, to the purpose of this text . The signs a business is broke.
TOP TEN SIGNS A BUSINESS IS BROKE
1. you’ve got contacted a minimum of 5 different lenders and no-one will loan you any longer funds
2. Your creditors list is 90 days out and larger than any possible income or invoices on the debtors list
3. you’ve got personally purchased staff wages quite twice within the past 2 months
4. Staff wages are consistently paid late
5. you’re ignoring emails and calls – a day
6. Staff are resigning in droves
7. The minute you create any money it’s all gone
8. Superannuation/Insurances are quite 12 months overdue
9. BAS/TAX returns are 12 months overdue
10. there’s no money within the account (obvious, yet still not a symbol for some)
Business Failure isn’t easy to simply accept – for anyone. it’s time to supply good solid advice when the business isn’t succeeding.
Look out for our next article on what to try to to when the top is definite.
