It is the nightmare of any businessman to discover that his business investment has turned into a total financial catastrophe. So to prevent these types of events, a thorough business evaluation has to be done to minimize the risks and give your investment decision a fair go.
A business venture, before opening date, has to undergo a reliable feasibility study. That way, the chances of business success is higher. The problem is the market can be so dynamic. What was the biggest trend a couple years ago may no longer apply for the current year, and your business forecasts may also be off target as realistic as you attempted to make them in your business plan. So, if you find yourself in this situation, it is probably time for you to get tips and advice from a reliable business mentor or a business coach – someone who knows the market well and can give you advice from their substantial experience in business.
Fortunately, there are plenty of business consultants like David Guest in Melbourne who can come to your rescue. Getting the news early from your business mentor that things are going wrong before your business turns bad and have to put up the CLOSED sign on the door gives you a chance to fix things.
Even if you’re only in business to create a lifetime job for yourself, you still want to be making sure that at some point in the future your business is appealing enough for someone else to want to buy it from you. So whether it’s to keep you employed for your entire lifetime or to give you something to sell at retirement you want your business to be a good business investment.
What Are The Signs Of A Bad Business Investment?
If you recognise these signs in your business, it’s time to look for a business coach to help you undo the damage.
- A shrinking clientele. If you visit your establishment and you find it more exciting to listen to your iPod than you do to look at your customer traffic, beware. It may just be a bad day in business or it could also signal that your establishment does not create the same buzz as before or worse, your market has lost interest. If that happens, you better do something to increase your customer traffic.
- Increasing debts. When you loose control over your finances and debts start piling up; raise the red flag of your business. You may have let it go by unnoticed, but your sharpest competitors will see it and if they’re determined enough use it against you to put you out of business so there’s less competition for them. Do not indulge your business in too much unnecessary debt. If you are going to take out a loan, make sure you do something beneficial with the proceeds. Avoid using borrowed money to pay your utility bills, wherever possible. Although debts can be healthy, engaging in more debts than you can actually pay is like digging your own grave in the business arena. Before you know it, you can be up to your neck in debts and interest charges, quickly followed by shutting up shop or filing for bankruptcy.
- A shrinking profit. The bottom line in any business is whether you are making any profit at all. If the pattern of your business profits is declining, or worse, is negative, it is time for you to do something drastic. Whether it’s to get yourself outside help from a business consultant, roll up your sleeves and work double the hours or slash expenditure and loss making activities; things are very serious when you’ve got shrinking profits. No one is going to buy a business that has a negative profit, unless they can get it for nothing it’s not really a smart business investment.
A failure to be sensitive to these warning signs in your business can lead to misery and misfortune in your business. To avoid the future losses in your business, if you are concerned that you need help, expand your own knowledge by getting advice and assistance from a business consultant, a mentor, a mastermind group or a business coach. The right person will teach and guide you in making sound business decisions to move you from a place of fear to business success. If you want to get straight answers about your business, call David Guest in Melbourne. He’s a business consultant and business coach who can help you starting today.