Businesses  Often Fail Suddenly - Seemingly Without Warnings!

Owners of many businesses don’t always realize that the end of their business is coming and it is very near.

Oftentimes, they are totally unaware of what is about to happen – until it is too late to correct their problem(s).

Our staff has listed our most common indicators that should have warned owners that they were heading toward a business failure.  Those owners who did not heed our advice all had their reasons for not doing so.  Yet by reviewing these indicators, we believe that you will have an excellent opportunity to avoid repeating their mistakes.

Hopefully, you will use these indicators as a checklist of reminders to make sure that the survival of your business is as secure as possible.  And although there are a lot of indicators shown here, we don’t consider that this list is complete.  So, if you can think of additional problem areas that we should add, please leave us a comment.


NOTE: These warning indicators are listed in no particular order.

  • Being Overwhelmed By Competition
  • Business Model Is Not “In Sync” With Available Resources
  • Business Situated In Wrong Location
  • Business Strategy Does Not Change With Market Conditions
  • Cash Flow Issues – Can Easily Run Out Of Money
  • Consistently Slow And Low Volume Sales Activity
  • Constant Infighting Among Staff
  • Failure To Measure And Monitor Marketing Efforts And Results
  • Failure To Track Business Objectives – “Seat of Pants” Decisions
  • Inadequate Inventory Management
  • Inadequate Management Of Accounts Receivables
  • Inappropriate Use Of Company Funds
  • Internal Strife – Employees Upset And Unresolved Issues
  • Key Personnel Have Leadership Issues – Personality Issues
  • Key Personnel Showing Signs of “Burnout”
  • Lack Of Experience For Critical Tasks At Hand
  • Lack Of Proper Business Planning
  • No Business Identity Of Their Own – Does Not Appear Unique
  • Not Displaying The Value Of Products – Improper Marketing
  • Out Of Touch With Customer Needs
  • Owners Are Much Too Confident – No Longer “Teachable”
  • Poor Goal Setting Or Poor Implementation Of Plan
  • Poor People Management Skills
  • No Backup In Place For Key Personnel
  • Purpose Of The Business Is Unclear Or Not Clearly Defined
  • Rapid Growth Comes Unexpectedly – Not Prepared To Handle
  • The Business Depends Too Much On Just A Few Customers
  • Thievery Of Company Products And/Or Equipment
  • Too Much Money Being Spent On Fixed Assets
  • Trying To “Buck The Trends” – Fighting Uphill Too Much
  • Under Funded
  • Using an Inadequate Marketing Message
  • Using a Poorly Designed Pricing Model
  • Very Poor Credit Management
  • Weak Marketing Programs Being Used – Not Being Competitive

This article was written by SDK Hunter Consulting Group

About The Author:

Sherman Hunter and SDK Hunter Consulting Group staff consultants provide global moneymaking opportunities and proprietary strategies that quickly accelerate business activity. You may familiarize yourself with these unique concepts by visiting the SDK Hunter Consulting Group blog located at:

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