Ignore Warning Signs at your Peril

                                                       Ignore Warning Signs at your Peril   

In a challenging economic environment, the prudent entrepreneur should review the most common reasons for the stalling & potential decline of sales growth and profitability. The primary reasons: are inadequate systems & metrics, a "peter principled" management team, unprofitable products & customers, lack of planning and cash flow planning in particular. All of these problems are exacerbated by the entrepreneurial ego.

Having created the concept and developed it into a successful business, most entrepreneurs feel that no one can help them when they encounter profitabilty problems. After all, they were the one that created, developed and grew the business. No one else could know as much about their business as they do. Unfortunately, this trait prevents them from seeing the changing economic background and to take preventative actions until their situation becomes dire. They also do not recognize the pitfalls associated with their growth ( see previous blog "Pitfalls of Growth").

In subsequent blogs, I will specifically address each of the reasons for  the stalling & potential decline in sales & profitability.

John Thrasher       The Swiss Army Knife