Is this the year more businesses fall
Businesses are unstable structures that we base our lives around. Both the consumer and the consumers build their lives around businesses that they think is going to support them. But much like a puppy bought at Christmas, a business is not necessarily for life. There are a myriad of things that can go wrong, and lead to a business being spiralled into administration. There have been some big airlines fall recently, Thomas Cook, and now Flybe are on the edge as well. Two UK businesses that have been serving the aviation world successfully for years. So, if the pressure is on for all of the high flying businesses who seem to be at the top of their game, what does it mean for the smaller businesses who are struggling to make a profit. So, we want to explore why these businesses might fall, and how to ensure yours stays floating this year.
Poor Data Management & Use
Data becomes the backbone of a company. The data that builds up over the years forms the basis of everything a business does. Data is analysed and interpreted so that a business can perform to the best of its ability. But poor data management and use can lead to a breakdown within a company due to the chaos it can cause. Issues with the database can lead to downtime, loss of data, and delays in business growth. Poor data management can easily be handled when using the right database for your company. It may be the one that you're using is too small or software isn't suitable. A database comparison tool will allow you to perform a comparison between the different databases, therefore allowing you to see which one will better suit your business. A lot of businesses prefer to choose the option that gives them more support, such as with database errors and growth. The data that flows within your business is always going to grow, so it's essential to have a database that grows with it.
Poor Financial Decisions
Poor financial decisions seem to have been the theme for businesses this year. Take Thomascook as the prime example. Managers were taking an enormous amount in dividends and bonuses, even though they know the company was in financial turmoil. So making financial decisions that might first compromise your bank account for a while in order to save your company is a no brainer. Always make sure you're speaking to financial business advisors who can help you figure out the best money plan. In times of true financial turmoil, investing money back into every area of the business to support growth is essential.
Poor Management Of Slow Periods
Slow periods happen, especially at this time of year. Poor management can lead to financial loss as well as unnecessarily extending slow periods. To correctly manage a slow period, you simply need to make sure that you're slowing down each part of your business. Slow down investments and production to make sure that cash flow isn't high whilst production is low.