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10 Business Warning Signs

Companies are thought to thrive. No conscientious entrepreneur invests time and money in the expectation of bankruptcy. The objective of any venture is prosperity, through a profitability that justifies the assumed business risk.

We often say that a business is a living being, that responds to the movements of the market, customers and the people who are part of their daily lives.

And, as a living being, the business gives important signals about its growth or difficulties it faces.

Identifying and monitoring these signals is a primary task for managers of a business that wants success or maintain a business in development.

Unfortunately, things often do not go as planned, and business begins to show signs of warning that something needs to be done to get things right and, of course, the company back on its path of development and prosperity.

Nothing happens without warning in a business, the top ten warning signs are listed below, not necessarily in order of occurrence:

1)Sales falling or stagnant;
2) Impairment or significant decrease in the profitability of the business;
3) Increase of indebtedness with banks or third parties;
4) Lack of working capital and management thereof;
5) Recurring customer complaints;
6) Rotativity of collaborators;
7) Team dissatisfaction with business directions;
8) Increase of default;
9) Negligence in relation to changes in the market;
10) Stagnation of the management model.

Of course, the frequency and intensity of warning signals vary from business to business. Each alert signal acts as an alarm, which requires a specific action in the management of the business so that it returns to the desired direction.

For the successful development of a venture, it is imperative that the managers of this enterprise do not ignore any signs of alert of the business or the market, taking the necessary actions in order to correct any problems evidenced by the signals issued by the business itself.An always salutary measure in business management is to identify and track key business performance indicators.

Companies that constantly monitor their indicators are hardly surprised by the warning signs that appear.

Written by Flávio Paim.

Source: http://www.flaviopaim.com.br/

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