In every economy, there are companies that are able to rise above the others regardless of the various challenges thrown to them and there are companies unable to cope. It can be hard to tell if a company is going down because you are not so sure which warning signs to watch out for. There are even cases where the business seems to be doing well one day and then all of a sudden, declare they are broke.
If you want to know whether your company is going broke, here are some of the signs you need to look for:
Low Revenue
If your company is going down, the first sign you will definitely notice is the lack of revenue entering the company. It is possible that there won’t be any major sales or it is lower than the estimated projections for the quarter.
Without a steady income from sales and other revenue sources, the company will definitely find it hard to manage to stay afloat.
Your business is no longer a hot topic
Another sign that a company is going broke is the fact your business is no longer being talked about, whether in social media or in regular conversation.
It is possible you no longer have the same interactions with them like when you first started in the industry or everyone lost their interest with your company.
No new hiring
If a company is doing ok, it will constantly be hiring new people to help them keep up with the demand from the clients and investors. However, if your company does not have enough funds or is going stagnant, it will definitely freeze hiring.
When this does happen, it is a sure sign something is going on in the company. If the company does have openings, you will notice that it is left vacant if the company is having troubles financially.
Layoffs are common
Aside from layoffs, you will also see an increase in people getting laid off. Some of the good employees are taken out because of their salary or office politics.
People will also feel the pressure of handling more work than usual, which would then cause problems for the company even further. The longer this cycle continues, the more likely the company will not survive in the long run.
Everyone is no longer happy
Since layoffs are common and everyone is forced to work more than they should, everyone will slowly lose their drive to continue working.
With workers no longer satisfied and the company going down in a slump, everything will definitely be going down further.
In Other Words…
When you see some of these signs happening to your business, it is important that you immediately set some plans to help you survive this challenge. While staying in the company is a good sign of loyalty, if you are no longer happy with your work and everything seems to be breaking apart for the company as a whole, it is time to update your resume and keeping an eye out on greener pastures.
On how to cope with loss of employment, we have the articles lined up for you:
Conversation with Patty Wolters on Unemployment During Pandemic Times
Everything You Need to Learn about Recession
What Governments are Doing to Help Out Freelancers and Self-employed Impacted by COVID-19
5 Things You Need To Do While You’re Unemployed
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Rightly said. Change the plans.
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Thank you, Kritika.
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Welcome 🙂
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sad but time to move forward
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True that. Thank you, Cindy.
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👍
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Yes revenue. Accounting is a diagnostic tool (like a thermometer) used to check the health status of a business.
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Thanks for stopping by and reading my post.
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Thanks for the interesting tips.
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Thanks for stopping by and reading my post .
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Kally, I LOVED this one.
I’ve been through this (what a Horror story)
I was in Middle Management, and NOT surprised at the outcome.
The New “savior-Company President” brought all of his buddies in and payed them; one and all; exorbitant salaries. They MILKED the company for a year; GREATLY adding to the bottom line deficient. … So it was no surprise to me. And then they SPLIT! Except for one person, who was competent; but not listened too.
I was even blamed for the companies falling…. (I only wish I HAD been in a position to save the company. Not positive that I could have saved it at that juncture? But maybe. This “savior” REALLY screwed the company up.”
Great POST, and very timely too.
Thanks and continued Blessings,
Patrick
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Oh dear, it must be a horrible time for you. To witness a company fell and many jobless.
Stay safe and have a wonderful Friday, Patrick. Be blessed.
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How many businesses will go broke with this pandemic, worldwide?
I hope your husband’s company is doing all right.
All well with you Peng Yu?
🙏🏻
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All is well, Peng Yu. My husband’s company is still staying afloat, hoping for the best. Like most companies are now actually. Big names are now trimming their operations like H&M, Zara, Esprit are closing their nonprofit outlets. This means more job losses.
I hope all is well for you and your loved ones.
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All well too, Kam siah. Glad you’re holding your head above the water. I suspect it will be a matter of some more months still. McKinsey says 2nd or 3rd Quarter next year. I hope your parents are staying safe. (Us “ancient” people need to be extra-cautious…)
🙏🏻
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Absolutely agree. I did verbally warned my parents to stay at home as much as possible and let the younger family members to go out and get the necessities. It will be total devastation if they are ill and I can’t fly over to visit them due to border restriction.
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They can take a walk, wearing masks, that is all right. Plus Singapore has managed the situation well. We do take half an hour walks around. For the rest? We buy all the supermarket on-line. There are very good services that have developed. Can you do that in Singapore or KL?
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Yes, we can buy groceries online. I prefer to do it in person though, especially vegetables and meat. I like to pick and choose. Plus it gives me the breather when I get out of the house and away from the little one. Haha!
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Haha! I understand. We sometimes have trouble with vegetables and fruits buying online… We have a choice to make…
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Such a great post! Thank you for sharing🌹
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Thank you and have a wonderful Friday.
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hmm .. the reality..
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Too bad and too sad.
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Wow! Really timely and awesome
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Thank you and have a wonderful Friday.
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Thanks❤❤❤❤
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🌹
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