How to Know when It’s Time to Walk Away from a Business

It’s not always easy to know where you stand. Sure, you’ve made it this far and there doesn’t appear to be any big trouble on the horizon. In fact, things are going quite well. Yet, you wonder if it’s just a matter of perception. Or, is your startup really going to make it? Well, there is no guarantee. But, that certainly doesn’t mean you can’t size the situation up at all. There are a few ways to tell if your startup is on its way to success. Why Most Startups Fail Of course, you should first know what causes most startups to fail. Perhaps the largest reason is they run out of cash. Investors only give so much, both in money and time. If you’re burning through cash and there’s little or no profit, you’re obviously running a really big risk of going out of business. Another reason startups fail is due to a lack of clear strategy. Put another way, they don’t know the way and don’t have a concrete idea of how to go from one goal to another. Most startups fail. But there is a common thread among some of the most successful startups: Consumers, not investors or tech blogs, find them first. A few examples: Facebook, Instagram, Pinterest, Most recently: Snapchat. —Business Insider.com Then, there’s tons of bad advice. It’s out there and if you take the wrong advice, you’ll probably see the consequences quickly. That’s your chance to act and change course to make it a lesson learned. Another reason why startups fail is the market moves in an unexpected way. They just aren’t prepared for contingencies. Or, fail to make necessary adjustments when needed. 3 Biggest Signs of Early Startup Success But, how do you know when you’re on the right track? What tells you that things are not only going well, but likely to continue in a good direction? Here are the three biggest signs of early startup success to lookout for: Positive cash flow. It’s no mistake the first factor in failure is due to lack of cash. If your company is bringing in cash and making a profit (that is, your intake minus your expenses), then you’re definitely off to a good start. Customers find you. Take a quick look at the quote above and let that thought sink in for a moment. If customers are finding you without you having to identify and chase them down, you’re fulfilling a crucial need and that’s a really good thing. Rhythmic, rock solid team. Another sign a startup is on the right path is when it’s crew recognizes they work well together and work toward goals as a team for the good of all. It means the right people are in the right positions and that’s a huge factor in success. What other signs signal a startup will succeed? Or, what might happen which means there’s trouble ahead? Please share you thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

We’ve all been betrayed in one way or another. Some situations are worse than others. But, all things being equal, it’s better to be safe than sorry. There’s an old saying in the real estate industry, “Buyers are liars.” (Although, this is true in just about any line of work, law, financial, retail, and countless others.) The point being, human nature is what it is and there’s just no way around it. Why It’s so Important to Avoid Liars Okay, you can probably think of a dozen reasons liars can be trouble. They cause feelings of betrayal, anger, resentment, regret, and basically a whole host of negatives. But, even if you’re able to get past the personal hurt, there’s the logistical fallout. The vast majority of customers are truthful. But the lying happens often enough to get under your skin. What’s more, deceitful customers pose a risk to your business. If they’re willing to lie to you, what does that say about their character? Would they also be willing to fabricate an errors-and-omissions claim for personal profit? —EOforLess.com Such consequences include but not limited to: being embarrassed by peers, trouble with client relations, upset in the workplace vis-à-vis team members, and plenty more circumstances. Plus, just a single lie can hurt your bottom line in a serious way. How to Tell When a New Business Client is Lying to You So, how do you spot a lie before it causes all sorts of trouble in your business? Well, it isn’t easy, there’s no question about it. But, there are some ways to tell when a client is lying to you, like the following: It sounds too good to be true. Okay, this is probably cliché’ but it’s nevertheless true. When someone tells you something that sounds too good to be true, it more than likely isn’t true. What’s most problematic is that in the moment, it’s easy to fall for. Their social media is a red flag. Some con artists make their lives to look out-of-this-world, luxurious and exciting. Others have absolutely no social media presence at all. In either case, it can tip you off to someone who is trying to hide something because there’s no information at all. Or, a person who is trying to fool everyone else by making their life look irresistibly envious. There’s difficulty answering simple questions. Here’s another bit of advice you’ll hear from experts on the subject of lying — the fibbers might have a lot of trouble with answering simple questions. (Conversely, when there’s inconsistent but a lot of detail, that’s also a telltale sign.) His or her past tells a completely different story. If you have a bad feeling, listen to your inner voice and get a bit of background from people in his or her past (if possible). Just asking a few key questions can tell you a lot, a whole lot. What other advice do you have to offer through your experiences? Please comment and let others know! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Ever feel like global economics are playing a game of chess with your small business as the pawn? Trade wars can certainly make it feel that way. But don’t fret. Below is an essential blueprint to not just survive, but thrive, even when tariffs are flying and supply chains are strained. So, let’s get strategic and make these challenges work for you.