When it comes to your business, there are a number of signs that can indicate trouble is on the horizon. While not an exhaustive list, most problems can be linked to one or more of the following:
- Lack of proper focus
- Poor management
- Poor financial controls
- Loss of key employee(s)
- Loss of important customer(s)/client(s)
- Not keeping up with technology
- Quality control or other operating issues
- Legal or governmental issues
- Target market change or shift
- Competition
Sometimes it is difficult to know when your company is in a bad situation. It may be too late if you don’t quickly decide what to do next. The obvious solutions are either fixing the problem or selling it. These decisions should be made quickly before time runs out.
When a company is in trouble, it’s often the owner’s natural instinct to wait and hope things will get better. However, this may not be the best decision for the business. Now may be the time to check with a professional intermediary to see what you can do to prepare your business for sale. Selling a company when it is in good shape will generally result in a better price and more favorable terms than waiting until the business is failing. If you’re not sure whether now is the right time to sell, talking to a professional can help you make the best decision for your business.