1. You’re Struggling to Pay Your Debts
The first sign of a struggling business is a difficulty in paying debts, whether already due or nearly due. If you often find your business doesn’t have enough available capital to pay creditors on time, it may be worth seeking some professional guidance. Ongoing inability to pay debts can lead to insolvency, so it’s worth getting help as soon as possible.
2.There is a Lack of Management of Accounting Information Available
One of the most important parts of running a profitable business is tracking where your money goes and how much you have available to spend. Not having well-structured and detailed financial records can lead to significant problems later down the line. A consistent struggle to understand or locate the relevant financial information relating to your business is a clear indicator that you might need some help running your business.
3.You’re Losing Key Customers
Many businesses rely on returning customers to ensure a consistent revenue. Loss of too many of these customers can result in uncertainty for the profitability of the business but may also indicate an underlying issue. If you’re finding that frequent customers are no longer returning (and not being replaced with new key customers), you should consider finding a professional to assist you in determining how to maintain your required profit margins and keep your business afloat.
There are a number of signs that you might need help with the financial, management or legal side of your business. The above three are only to name a few. Ultimately, you are the best judge of the health of your business. If you have any concerns relating to running your business or you find that one of the above signs relates to you and your business, our experienced commercial lawyers at Frank Law would love to hear from you. Make sure to give us a call on (02) 9688 6023.
If you have further questions, please contact us at firstname.lastname@example.org.
This is not legal advice.