ACTION 1. Acknowledge there is an issue
Sometimes in business you can be so busy keeping your head above water that you miss key signals that your business is sinking into trouble.
When you think that your business challenges are at risk of getting the better of you (or if you think that may already be a forgone conclusion), take a pause and take stock of your current business conditions and performance. Key signals that trouble is brewing include:
- Needing to request special payment arrangements with trade creditors;
- Withholding payments due to cashflow shortfalls;
- Reaching or going over your overdraft limit.
If you recognise some of these warning indicators in your business, there’s no need to hit the panic button immediately. Prioritise some time that you can step away from the business and get a clear perspective. Use this time to identify some options for addressing the issues.
One of the most tried and tested ways to approach this is to draw up a list of pros and cons for remedies that you can apply to each issue. Trust the process and thoroughly consider and explore each option.
Most importantly, accept that there is no greater priority in your business right now than taking the time to think through how you can start addressing the issues. The sooner you adopt a solutions focus, the better chance you have of being able to turn these issues (and your business stress) around.