This fortnight, I would like to write about early signals which can be identified by entrepreneurs himself for vibrant growth of the enterprise.
1.Return of cheques: When your first cheque bounces, it gives an indication that some long-term correction is required.Some analysis has to be done.It may be possible that your unit is under cash flow problems.Please try to find reasons and do not look short-term solution, Sit with CMA data and work out possible solutions and act immediately and monitor the actions.
2.Non-submission of a stock statement: First understand why the stock statement is required by the bank. The bank is always conscious that unit shall have enough liquidity to meet day to day needs.And if collections are not concentrated, or stock pileup is there, it will not be healthy for the unit.
So while preparing a stock statement, review your liquidity.
If you are not submitting, you are avoiding to review your own fears and do firefighting.It is better to face in your own interest.
3.Talent turnout: If your talent is leaving or absenting, it is time to think “why” and you have to relook at your working.
These are few early warning signals and better to discuss with either your bankers, your own confidence in the unit, your mentor or consultant.
If you ignore early warning you are likely to reduce your growth projections or you can enter into the negative zone of growth and be heading towards sickness or closure of the unit in few years.
Timely correction is need of the hour and monitoring and initiating the action is in your domain.
Neglecting this is suicidal.