Becoming a successful entrepreneur like Ali Mayar does not mean that your business can’t go on a bumpy ride before reaching success. You may not know it, but there are dozens of successful businesses out there that have been on the brink of failure but managed to cope up and bounce back to the top. If you are smart and observant enough, you might be able to detect early signs of business problems and save your venture from falling off the cliff. Here are a few symptoms of possible business problems.
• Stagnating market share. If you happen to observe the slack pattern of customers going in and out of your enterprise, then there certainly is something wrong happening in your business. A period of 12 months could be a critical marker to conclude that there haven’t been any increase in the number of customers coming in for your products and services. This problem can be remedied by changing your marketing strategy or by telling your workers to accept all customers, even those that offer the minimal amount of return.
• Dangerous price cuts. Lowering your product price is good if it still gives you a competitive edge and generates positive returns. However, if you find it hard to sell out your products without lowering their prices even to an extent where you don’t get profit anymore, then your business is certainly in danger. Trying to add more value to the product as much as possible and then trying to raise the price can give you a better bargaining position that can save your business.
• Debt Saturation. A business’ financial structure can be comprised of liquid assets and liabilities. Debt funding is commonly a good way of having additional capital to add up to your growing business operations. However, if you are depending too much on loans to meet even the most basic costs of operations can be an indication that your venture is not performing very well. To mitigate this problem, you can try restructuring your debts or clearing out pending accounts receivable from customers. You can also try generating money out from selling more inventory or acquire additional equity contribution from general partners.
• High Employee Turnover. Employees too, can be treated as assets of the business. They possess the much needed skills and expertise to handle the job and make your business run as smooth as possible. If you have a substantial number of employees going out from your enterprise, this could mean a loss in their trust that your business could generate the much needed revenue to compensate their tenure. You can mitigate this problem by creating a healthy work environment and an endearing culture in the workplace that makes everyone want to stay.
Your dream of becoming a successful entrepreneur like Ali Mayar may end up early if you don’t have the ability to detect business problems and cure them before they worsen. A successful entrepreneur like Ali Mayar knows just how to deal with them and by the time you learn, you’ll be making your own name in the industry too.