Recurring losses are bad enough, but when you re financing your losses with additional debt, the problem becomes even more critical. Develop financial goals, sound forecasts, a strategy to achieve the goals, and a short-term plan to meet your immediate cash flow requirements. Your industry is experiencing a downturn or an explosion in growth. Neither of these along is cause for panic, but each should trigger an aggressive response from your company. Your company must be equally prepared to handle a downturn, upswing, or a new product rollout.
Employee relations leave something to be desired.
Labor disputes with the union, excessive turnover, a management by fear culture, or lack of succession plan all point to human resources problems that need your attention. Begin an open dialogue with your workforce. And put a succession plan in place to ensure continuity of operations and management. Your company is experiencing capacity issues and high overhead. Analyze your overhead costs including administrative costs, labor costs or fixed costs such as buildings and vehicles to determine where you can modify spending.