Having a startup is exciting. This is even if you expect that you’re going to be spending and losing more money in the first year than you actually make. But traditional business strategies still apply — including watching for the signs that you’re in trouble.
If managing the day-to-day operations of your office or store is bogging you down, hardieslawyers.com suggests looking at these signs your company may be in the red, just so you know if you need to check on your books:
1. You’re getting more complaints and issues with suppliers.
Being unable to pay your suppliers and contacts on time and in full is one easy way to see that you’re in the red. Aside from not being able to support a constant cash flow, you’re also hurting your business relationships.
2. You have overdue taxes and superannuation liabilities.
You’re in trouble if you can’t pay your taxes since all your money has been tied up with your suppliers. Corporate insolvency Perth firms look at your taxes first before anything else to determine how bad off you are.
3. Suppliers are asking you for (cash-on-delivery) or COD when you order.
Nothing screams, “We don’t trust you” like getting slapped with a COD when you order from a supplier to contractor.
4. You can’t seem to raise more funds from your shareholders.
Whether this is because you haven’t presented your requests well or if your pitches aren’t that compelling, the fact that your shareholders don’t believe you may be an indication that your company is about to go under and that they’re cutting their losses.
5. You have stock sitting for too long and are unable to sell.
Did you know that the most successful businesses hardly have any stock sitting in storage? They produce just enough to meet demand.
The government does want to help investors, employees and business owners out. After all, more businesses mean more taxes and commerce. Check out this post on what other signs you have to look for in case your company is in the red.