Discover 4 signs that your company is about to collapse


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When you start a business, the only things you think about are generating profits and establish yourself as a brand in the market. For this to happen, companies adopt several marketing strategies, sales actions, and promotions that aim to increase their results. But, there is always something that can go wrong. And, if it remains unnoticed for a longer period, it can lead companies to close their doors. 

However, it is essential to know that the closing of a company is not something that occurs in a short time, but is a result of recurring errors, committed over a long period, that affect your credibility, the health of your brand and, finally, your profits. In this way, it is possible to perceive, over that time, some signs that your company is not in a good situation, which allows you to act to avoid having to close the doors. 

Thus, it is necessary to know how to identify the signs that your company is collapsing in its early stages so that it can be saved.

Signs that your company is collapsing 

Check out some of the main signs that your company is collapsing and is in danger of closing so that you can identify your mistakes and correct them before they cause even bigger problems, which compromise your continuity in the market.

Low sales

 It is the first and most prominent alarm signal, which alerts you that you are in business, will collapse. It is because the expected sales are not achieved, or there is a decrease in sales, unlike in the previous quarter. Also, your business cannot succeed without a stable income to pay all expenses. 

Therefore, when you notice that your sales have been minimized, immediately, you need to identify the problem. Start by surveying your employees and customers, conducting a competitive analysis, and examining the outside environment as well as social changes or natural disasters.

Difficulties in planning and decision-making

For safe and effective planning, a detailed comparison of numbers is required. When the storage of information is done through notes on paper or in separate tools, the work becomes much more complicated, often impossible. Creating plans is to think of ideas that overcome the difficulties of the past and that keep the company in full growth. But without data from previous scenarios, the work methodology is only in theory. This obstacle is another clear sign that your company needs a management system. 

The software, in addition to storing all relevant business information, also allows the manager to make strategic projections based on management reports. And everything is more assertive and concretes with the integration of sectors being carried out successfully – another great advantage of a management system. 

With real and regularly updated data, the manager has firm control over the company’s information, identifying possible weaknesses, and making the best decisions to build reliable and effective strategies.

If no one talks about your business

In the same way, you will find a company in a phase of decline if no one mentions it on social networks, they do not leave comments, or no one contacts customer service. This is because you are not interacting correctly with your audience, so they do not care, nor will they care in the future. 

Therefore, try to make an effort to reach your customers by asking them to leave opinions and increase their commitment to your business on social networks.

Dissatisfaction and high employee turnover

If customers are the reason your company exists, employees are responsible for intermediating between your brand and the public, and they are just as important as keeping the business open and prominent in its segment.

Besides, employees are the main business card of a business. If they are feeling dissatisfied, this will not give a good image to your customers, who, in turn, may stop doing business with you and lead to the closure of the company. It is a sign that something is wrong and that it is necessary to change. So, create actions to keep them motivated, engaged, and lower their turnover. That way, everyone wins! 

It is important to have employee retention policies. After all, with the high competition in the market, you won’t want your best talents to migrate to your competitor, right? To check if your employee turnover is high, you can apply the formula: number of employees’ terminated / average number of employees of the company. So, if yours is much bigger than this, stay tuned, as it can be a sign of closing a company!

Wrapping up

To recognize that your business is not working, it is necessary to go down to the reality of the company and identify all those factors that are influencing decrease inefficiency. The sooner you solve them, the easier it will be to get back on track and continue successfully.

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