Posts Tagged ‘financial problems’

Two Dangerous Financial Illusions

Sometimes when a company gets into financial trouble management is being deluded by things they thought were indicating financial health.

The Sales Illusion

It is not uncommon for a company’s management to see growing sales and think this is a clear indicator that everything is going fine. Increasing sales can be an indicator of financial health, but not when taken alone. If you read the posting Cash Flow – The Bottom Line you would have read about Read the rest of this entry »

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Cut Your Losses

There are some businesses or products and services that stick around way past their time. Sometimes it is better to cut your losses and move on.

Know When to Say When

You may have a company or product that has performed very well for quite some time. Then one day you look up only to find that either what you offer is losing demand or somebody else has something better. If you cannot revamp or rebrand to become competitive, it may be Read the rest of this entry »

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Don’t Fall in Love with a Product

Change. It’s one of those things we cannot escape. When it comes to products and services to buy or sell, the same is true.

Some Big Changes

Can you recall when Microsoft was sitting on top of the computer world? Now, I’m not saying they will dry up and go away any time soon, but the landscape they operate in has changed, and if they are to survive they will have to change as well. It’s the nature of business – change or be changed. Read the rest of this entry »

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How Time Erodes Your Profit

You’ve probably heard that time heals all wounds, but when it comes to the finances of your company the passage of time can inflict serious wounds.

Financing

How is your company financed? Is it internally, a line of credit, long-term loan(s), or some combination of methods? Regardless of how you finance a company, the passage of time can erode your ability to Read the rest of this entry »

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Financial Problems are Multi-Level

So you find your company’s finances tight and you think you know the reason, but do you? Maybe you do, but maybe you don’t.

A Quick Example

Imagine this financial tightness is experienced primarily through always having to battle to have sufficient cash. You have identified the cash shortage as your main issue; and on the surface that may well be true. But, upon closer examination you might find that the cash crisis is merely a symptom. This kind of issue is usually multi-level, involving other things that are producing the symptom(s).

Some Examples

Generally, financial problems, including tight cash positions, are more than Read the rest of this entry »

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