We all see warning signs posted everyday. This warning sign was posted at a horse farm where I stayed at a lovely bed and breakfast. From the window I could see the lovely horses and the pasture. If I was a horse person I would have jumped over that fence instantly and ridden the horses.
But I’m not a horse person and the owner of the farm had posted this sign right at the point a guest would try to do so. Most sensible people would know that trying to get close to animals without the training or being introduced is a bad idea. But I’m sure she has woken to guests in the pasture!
Where am I going with this?
Have you been ignoring the common warning signs in your business? Is there someone telling you something quietly that you should pay attention to?
Common warning signs that a business might be foundering are:
- Accounts Payable is approaching 60 days or more.
- Accounts Receivable is not being paid on time.
- You have to check the bank balance before writing a $20.00 check.
- A month or more behind in Rent.
- Payroll taxes not being paid on time.
- Your profit and loss statements show negative numbers for sustained periods.
- And finally, your office is in poor repair.
If you see a pattern of these types of issues, then make sure you take the time to get your books in order and reexamine how you are doing business. Is this the time to close the doors? Do you need to revamp your advertising? Do you need to hire a collection agency?
Be brave and pay attention to the polite warning signs before they become bright red and have flashing lights attached.