How would you know if you are in trouble? One thing I will say though: “It seldom happens overnight.” Even in turbulent times you typically will see signs of it coming. So here are some suggestions to know when drastic measures are needed:
- The obvious: sales are decreasing faster than the economy is shrinking.
- Customers are leaving for reasons that you have control over.
- Clients complain their calls are not being returned.
- Clients complain their problems go unresolved.
- Most projects are over budget.
- Employees are unsure of company direction.
- Employee meetings are unproductive and poorly attended.
- Good employees are leaving.
- Your receivable and payables are increasing.
- Expenses are climbing while gross profit is declining.
- Biggest problem: Your product no longer serves a need.
Ok, you might have control over many of these but with a sound plan you should recognize quickly that certain objectives are no longer attainable. There is not a more important time than now to develop a sound plan that is simple and straightforward that everyone in the organization can follow. The One Page Business Plan is such an instrument and I encourage you to use it through out your organization.