Business

Early Signs of Business Failure

Signs that might predict if sustained success in business is getting slimmer or is it just a hunch

On spotting these clear signs of an anticipated defeat, the wisest way out is by strategising and planning to leverage using whatever scantiest resources still remain at disposal.

Hastily Sketched Business Model

Without a brilliant and profitable business model that is feasible to work battling practical adversities and complications, businesses are doomed to fail and irrespective of having a cash overflow. The trick to discover the secret sauce that will help a business fly should be done spending minimum and using a diverse range of methodologies and experimentation. How to smell a failure? You are trapped in a freakish tangle of problems resulting from micromanagement and are too bogged down to think about the bigger picture.

Dwindling Capital

A no brainer! Business legitimately boils down to numbers at the end of the day no matter how far you are willing to wade in the mark. There is no turning away from shrinking funds which is never a good omen especially when you have considered all the variables. Business ventures may start on a promising note but eventually, the access to working capital and other financial streams die down resulting in low credit score and the impossibility to borrow from traditional channels. With cash shortage, you will find it increasingly difficult to pay bills and have reached borrowing limits already. Cash shortage inadvertently threatens future goals and business expectations culminating in a collapse.

Unsuccessful Marketing Schemes

 If you are yielding practically low or null results from marketing and advertisement schemes even after sustained efforts, it is high time to contemplate your decisions and ideas. Marketing and outreach are often grossly underrated by business owners and flung aside. It is perilous if not naïve to assume that everybody else will believe and put faith in the business without tangible efforts. Unless business ventures are flagged off with a well-articulated marketing scheme and clearly identified the target demographic, they might stumble. A series of failures in reaching out ultimately results in poor sales and an ever-expanding inventory—an unmistakable red flag.

Poor Communication

If the foundation of management and communication has become shaky and ripe with conflicts, misunderstandings and non-performance, re-evaluate to avert the doom. On recruiting, building and managing talent depend the success of an organisation. When the anatomy of leadership is threatened, the subsequent commotion will finally lead the business to crumble like a cookie.

Puja Sinha

Coffee addict. Daydreamer. Hitchcock Fan. A post-grad in English Literature, Puja is a forever enthusiast of traversing long distances by rail. Her verticals of choice are entertainment, art & society. She can be found lazing in the garden when not fidgeting over deadlines.
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