Spotting Dying Businesses

Do you want to know if your company is dying? Yes for two reasons:

One, you can intervene in the issue and improve your teams results. This puts you in a leader’s role with the resulting salary.

Two, you can be the first to find a new company to work with.  There are advantages knowing what you have to do and having enough time to start the process before you lose your salary, or experience the heartbreak of closing a company.

What are symptoms of a dying company?

1. Not Knowing Who the Customer Is

Big companies love processes. They are good because processes build quality controls and guarantee stable returns on effort. However your customer is not your co-worker who gets handed the work after you are done. He is a partner in satisfying the real customer who chooses and pays for your product & services.

Successful companies fall in love with their customers and dive deeply into their customer’s businesses. That way the company is focus outward, not inward.

2. Not Staying Up with the Times

Stable companies often have the belief their customers won’t change. They have always bought from us and will not leave. That is not true.

Customers retire, go out of business, or die. Businesses are run by people, and people always change.

Second technology changes. Eastman Kodak did not want to kill the film business, which brought in fortunes. The marketing failure was not realizing they could make more profits licensing their technology. Do you realize they could have had a Kodak Camera in every cell phone?

3. Not Creating New Products & Services

Unless 10% to 25% of your sales are new products and services less than 5 years old, your future is looking bleak. Mature products have to fund new investments to stay successful. What percentage of your sales are new products?

4. Illegal Business Practices
Bernie Madoff Ponzi schemes.  Double sets of accounting books. Inside trading. Bribes. Stealing secrets. Drug habits.

Any one of these practices can result in jail time, customers abandoning you, and being unemployable. Time to find new work now, even with a pay cut.

Check on a regular cycle how you and your company are doing. The only constant in life is change. Make sure you are doing everything you can to adapt and thrive.