Too often, companies die unnecessarily. Why? Because most managers haven't learned to recognize the symptoms of oncoming illness in their business. Management doesn't know how to manage in this situation. It hasn?t had to in the past, and is ill equipped when trouble sets in.
The obvious signs of business trouble are rarely its root causes. Losing money, for example, isn't the problem. Rather, losing money is the result of other problems.
When you wait too long to recognize deteriorating characteristics the company seeks bankruptcy protection . . . only creditors, attorneys and accountants benefit from this process. It's the astute manager who recognizes infallibility, and has the foresight to ask for help . . . before serious trouble sets in.
As corporate managers and directors, you share in the business risks of the companies you serve. You accept additional risk when the company is heading for trouble. By recognizing some early warning signs of business trouble, you can eliminate, overcome, or, at the very least, sidestep those risks.