Do you know the cause of your business problems?

Posted: June 9, 2013 in Family Businesses, Up-and-running Business
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My earlier post covered the realization that your business was in trouble? It may be obvious:

  • Sales have dropped 15-20% over the past year
  • Cash flow is awful
  • Morale is lousy
  • No improvement in sight.

What is the cause of the problem? Remember, the financial statements are a reflection of what has gone on… and on.. and on. What caused the sales to drop?

  1. Is your product or service stale?
  2. Has your market shifted?
  3. Has a new competitor taken away clients?
  4. Are your marketing and selling efforts poorly coordinated?

It could be all of the above or more. You must find the cause and take remedial action. Sitting on your hands and being confident that customers will return is a foolish mistake. Doing nothing means existing overheads eat into precious cash flow. Time is ticking away.

There is a basic question that the business owner must answer: “Do you know what you are doing?” I’ve worked in many small businesses and family owned enterprises where I’ve been told this many times .. “I know what I’m doing.” A few of these could have been epitaphs because some aren’t in business today.

Do you know what you are doing?

 

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