What are the early warning signs for a business that trouble may be ahead?
I was once asked by a stranger (and successful business owner) what I thought the early signs of failing companies were. After a little reflection, I answered; “avoiding making decisions”.
To this day I stand by this observation. In my experience, when a company hits difficult times, fear and hope conspire together to paralyse the organisation. Fear that acting will expose the position, "I will look like a failure", "if we cut costs key people will panic and leave because they believe we have a crisis". Hope, that if we wait a little longer it will all be fixed – "the money we have been owed for 9 months will be paid", "our bad luck of losing bids must end and we will win a new major contract".
Ironically of course, the best cause of action is entirely the reverse. Act now, explain the problem to your team ensures everyone is focused on solving the problem, significantly increasing the chances of success and in my experience creates a level of camaraderie that will endure for years to come.