Every business experiences dips in profits and stalled growth throughout its lifecycle. Though nerve-racking, these natural ebbs and flows in profits shouldn’t be cause for concern for business owners. But when the loss in profits feels more like a plummet than a dip or when stalled growth extends from one quarter to the next quarter, there could be larger underlying issues that need to be addressed. It might be time to stop, answer the tough questions, and build a strategy to course correct.
Here are seven signs you need to perform a 360-degree analysis of your business and build a plan to enact step changes to get your business back on track.
Your reports are showing more than a blip in profits. Quarter after quarter, profits have been sliding or they have completely plateaued. This isn’t part of your typical business cycle, and it’s causing concern on the leadership team. You’ve tried to move the needle in the right direction, but nothing has worked, and you’ve exhausted all your options.
Your customer base is growing, which is a great. But as you acquire new customers, your margins seem to be shrinking, which means profits are dwindling. Even worse, you’re not sure why it’s happening or how to fix it.
You’re adding new products to your line that complement your best sellers and offering services relevant to your customers’ needs. But as you grow your offering, revenue isn’t growing along with it. Are you spreading your efforts too thin? Did you introduce a new product too soon? You feel like you’re doing all the right things to grow your business, but you’re growing in all the wrong ways.
The world is changing at breakneck speed, and your industry may be going through changes that leave your path forward unclear. If your industry is changing in a way that potentially alters your risks and opportunities, you need to reevaluate your strategy to remain competitive.
Much like industries evolve, the technology we use to conduct business is constantly changing. As global players rapidly adopt AI, IOT, and new tech, the companies that don’t keep up with the latest innovations will find themselves falling dramatically behind. You wonder how this technology could support your business—and if you can afford to implement it. Your current IT infrastructure is more hinderance than help and it’s stifling growth, but you don’t want to invest in a system unless you’re certain it will provide results.
The time has come to sell your business and you want to maximize your company’s value, but you can’t find viable investors because the business is riddled with costly issues. In order to sell your business at the right price, you need to invest in it now and create significant changes to make it more appealing in order to reap the rewards down the line.
Founding and running a business is a lot of work, but it should also be incredibly rewarding and, quite frankly, fun. If the excitement and passion you once had for your business has devolved into constant frustration and sleepless nights, it’s time to make some changes.
If you’re experiencing any of these issues, now is the time to take action. Unfortunately, business owners are often consumed with the day-to-day responsibilities of running a business and don’t have time to lead an in-depth analysis of business operations. It’s also safe to say that if certain issues have been plaguing the business for an extended period of time, company leaders probably don’t have the solutions—or they can’t even identify the problems that are causing profits to dip.
Ready to turn your business around and keep on going? Contact the experts at FortéOne.