Signs Of Poor Financial Performance In Business

Business financial performance is the overall financial measure of how well a business can achieve its financial objectives, using its assets to generate revenue and profit over a given period. 

These warning Signs Of Poor Financial Performance in a business may indicate that the business may be under pressure, at risk, or in financial trouble and may be going out of business in the near future.  Signs of financial distress in business are merely symptoms of different causes that are responsible for a business in financial trouble.  


Signs of poor financial performance include:

General signs of a strugling business

  • Declining market and customers because you're losing your competitive edge
  • Your business experience declining profits due to ever-increasing cost and overheads
  • Your sales are growing, but you never seem to have enough cash available

Signs from Cash flow 

  • Cash flow always tight so paying payroll is difficult.
  • Cash is tight because of customers not paying on time, or as promised
  • Not enough money to buy the stock that's needed 
  • Not enough money for marketing 

Signs from the Bank 

  • Your overdraft is always at the limit.
  • Your bank always wants more information.
  • Your bank has returned debit orders.
  • Your bank has refused to increase facilities or wants to reduced facilities.
  • Your bank asks for increased security.
  • Your bank wants personal guarantees or wants to increase personal guarantees.
  • Your bank wants security against your own property.
  • You already have consolidated you debt.

Signs from Creditors

  • Cash flow always tight so paying creditors on time is difficult. 
  • Vendors threatening to stop doing business with you due to late payments.
  • Low production - can’t get stock because you can’t pay creditors on time.
  • Don’t hit targets – can’t get stock /services on time.
  • You cannot get new credit.
  • You cannot extend existing credit.
  • The business’s creditor days are growing
  • You have lots of failed deals with creditors.
  • You have lots of red warning letters.
  • You have had lots of legal actions.
  • You are using lots of suppliers and spreading credit around.
  • You are always fighting creditor fires.
  • You have to handle creditor’s calls every day,  using lots of suppliers and spreading credit around
  • You have had visits by Sheriffs or bailiffs.
If you get an uncomfortable feeling that it is familiar – speak to a specialist in this field.  Thanks for reading, I hope you found it valuable and helpful.

PS: Earlier intervention can lead to a much better outcome for the business and provides your business with the best options, so if you have any doubts, please contact us for a free strategy sessions today. "free crisis strategy sessions" 

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If you would like the best immediate solution for your business you can go to The 40-Day Business Turnaround Program will take your business from a "Breakdown & chaos to a Breakthrough & control" in 40 days or less. Stop the urgent pressing cash flow problems that's forcing you into making bad decisions, and forcing you into digging yourself into a deeper financial hole. Let us help you transform your cash-demanding profit-seeking business back in to a highly profitable cash-flow rich business 

About the Author Hans

Hans had 40 of his own businesses over the last 30 years and is famous for creating fast-growing businesses” He is an author, speaker, coach, and consultant and a specialist in business optimization and turnaround, helping smaller business owners eliminate business limitations, threats, and growth challenges in achieving their sales, profit, cash flow, and income goals with sniper precision.

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