by Sharon Jones
The idea of a successful business is typically synonymous with financial profits. Indeed, a failing business is a business that doesn’t make any money, or that is struggling to recover its costs. Therefore, it can seem surprising to describe a business as failing when the company continues to make profits. For new entrepreneurs, especially, measuring success tends to focus on the revenues-making abilities of their company. It takes time to develop a 360-degree overview of the business and to realise that success comes in many forms and shapes.
A general rule of thumb, however, is that there are alarming signs that precede failures, even when the company generates money. Below we’ve listed the three most significant issues that too many new companies overlook until it is too late.
You don’t make your team feel appreciated
The recruitment process is a learning curve for every new business owner. Reading resumes, interviewing candidates and choosing the most suitable talent for the company can be time- and effort-demanding. It’s probably why many business owners assume their job as an employer ends when they hire new employees. In reality, your role as an employer only begins with the hiring process. You have a duty to invest in your staff and to consider how to maximise their personalities and aspirations. Indeed, keeping your team happy and engaged through dedicated training, support and perks is vital to employee retention. When your employees don’t want to stay with you, it becomes increasingly difficult to maintain your growth.
You’re beyond H&S requirements
The days of dangerous professional activities are long gone. Nowadays, health and safety regulations are essential requirements for every company. However, it’s not uncommon for businesses to sort out audits in-house and manage H&S complaints without a certified representative – you need an HSR qualification to undertake workplace inspections and investigate related complaints. Unfortunately, because H&S has become an integral part of the business jargon, many professionals forget that the interests of a work group should be represented by a trained expert. As a result, complaints are more likely to arise without adequate solutions, leading to hefty compensations and losses.
You’re missing out on essential tech
It’s the 21st century. Does your business live in the same era than the rest of the market? If you’re still worried about responsive web designs and online chats, you’re stuck in the past. Indeed, nowadays, businesses don’t worry about their responsive layout; instead, they consider digital technologies as a whole. The digitalisation of the organisation is not only a natural extension of our tech-savviness, but it also introduces new solutions to business problems and process management. Unfortunately, leaders that have not yet jumped on the tech wagon are likely to hit a growth plateau in the coming years. Essential investments such as process automation and AI system analysis can reduce time and cost significantly while ensuring your business can react rapidly and effectively to changes in the market.
A profitable business today may be sinking tomorrow. Indeed, your revenues are tightly linked to your team, your safety protocols and the effective use of innovative tech solutions. If you can’t create stability within your business, from your team to your processes, you’re likely to waste time and money trying to correct mistakes rather than invest in growth.