One of the thrills of owning and running a small business is that things are constantly changing. No two days are ever likely to be the same, and navigating the always-evolving business scene can be a huge source of excitement.
With these opportunities, however, change also brings challenges and threats. If a company doesn't adapt to stay with the times, it can and will be left behind - and eventually go out of business.
If things are moving slowly at your firm, it's reached a dead end or something just does not seem right, it may be time for a restructure. Here are the top signs that your business needs a good shake-up.
1. High turnover rates
As mentioned earlier, change can be good - but not if it is happening on a far too regular basis.
Does your workplace represent more of a merry-go-round than an office, with employees hopping into and out of the company consistently? Are you constantly losing your key clients and having to scrape for new ones just to replace them?
A high turnover rate, regardless of which party it relates to, is seldom a good sign for your company. Usually it points to a deep-seated problem within the organisation, such as unsatisfactory work arrangements or a product or service that simply isn't sustainable, or competitive enough in the market.
If you find that high turnover is a problem, take a look at where in the company the problem stems from - and what you can do to change it for the better.
2. Morale, satisfaction and engagement are low
The wellbeing (both physical and mental) of your employees can be a good indication of the health of the business itself.
The difficult thing about staff engagement and sentiment is that it can be incredibly hard to measure. Many employees choose not to air their resentments for whatever reason, instead letting it simmer and fester below the surface - harming your organisation in the long run.
It's therefore essential to keep in regular touch with your staff to uncover any underlying grievances, and see what can be done about them. Do workload and work hours need to be assessed to be fairer and more manageable for employees?
3. Profits are waning
It's simple - if your company isn't making a profit, it's not succeeding, and something needs to be drastically changed.
There can be many reasons behind your profit declining. Maybe sales and revenues have slowed and aren't at the lofty levels they once were, or you're spending too much on unnecessary expenses. An unstable or irregular cash flow can make a huge impact on your business's finances too.
If you feel that money woes are dragging your company down, take the time to look over its financial statements in depth to see which areas of the business can be streamlined to cut costs and boost profits.
4. Systems are out of date
As the market and the wider business environment continues to change, its not just your products, services and offerings that have to evolve and adapt. The back-end workflows, processes and technologies that fuel your company may also be in need of a shake-up.
Is a software system or piece of technology your business is using no longer large enough to accommodate the company's needs? Are there other solutions now available that can make your organisation more efficient, helping it get more work done, quicker?
You should never sit too comfortably within your business. Always be on the lookout for new opportunities to make it better and bring it up to speed with the times.
If your business needs any help with working capital management via a business line of credit, debtor financing or equipment financing, contact Earlypay’s helpful team today on 1300 760 205 or visit our sign-up form.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].