How long before you know a business is going to bankrupt?
I work in a small store that opened a few months ago. The people I work with are great, but I have a sinking feeling that we are not making enough money to operate much longer. I know some of the figures and they are just not adding up, at least not with the info I've been getting. How long does it take for ab usiness to go under, and what are some warning signs?
Layoffs or reducing everyone's hours to skeleton-crew size, no new inventory coming in, owner losing weight or looking tired, suddenly raising or lowering all the prices…
Offer to help promote the store. Sometimes with the excitement and promise of a new business the owners don't promote very much, or despite having the big idea don't have a creative or selling bone in their body and then the business sputters to a stand-still. At the very least it would be a comfort to them that you want to breathe some life into the place, and it might energize them as well.
You guys could dream up a gift or price promotion and distribute flyers, put an ad somewhere, stand outside ringing a bell, just about anything.
This entry was posted on Saturday, May 30th, 2009 at 6:50 pm and is filed under going bankrupt. Follow the comments through the RSS 2.0 feed. You can post a comment, or leave a trackback.
Record how much you spend, how much you earn for three months if spend is more than earn, you'll go bankrupt soon.
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May 31st, 2009 at 12:09 am
I'm in the same situation that you are in. The things that I've noticed being in the business that I work in is that there aren't any "new" jobs coming in, accounts receivables have dropped greatly. This has been apparent to myself and a few other co workers for quite sometime, however the owner has not mentioned it. I don't know what kind of business you are in, but a drop in production do to no materials and/or account receivables is a pretty good indication, as well as cutting hours…If your in any doubt though "self preserve" and start looking for something else. Good luck.
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May 31st, 2009 at 12:44 am
Warning signs: people quiting/ leaving, sales going on, talks about throwing in the towel, or people looking for a new job. If you think about it the more money they can save the less they will be in debt.
References :
May 31st, 2009 at 1:19 am
Layoffs or reducing everyone's hours to skeleton-crew size, no new inventory coming in, owner losing weight or looking tired, suddenly raising or lowering all the prices…
Offer to help promote the store. Sometimes with the excitement and promise of a new business the owners don't promote very much, or despite having the big idea don't have a creative or selling bone in their body and then the business sputters to a stand-still. At the very least it would be a comfort to them that you want to breathe some life into the place, and it might energize them as well.
You guys could dream up a gift or price promotion and distribute flyers, put an ad somewhere, stand outside ringing a bell, just about anything.
References :
May 31st, 2009 at 2:00 am