Restaurants and bars go bankrupt every day of the week. The thing is, they don’t go broke overnight. In fact, most give strong warning signs YEARS before the front door is padlocked shut.
Some common warning signs:
- Owner’s passion is gone and he/she dreads walking into the building every day.
- Owner’s time is consumed with “conversations of crisis.”
- Owner’s long term vision does not extend beyond the end of the week.
- Management no longer know what the mission of the company is.
- Management lack pride and passion (now in complete survival mode).
- Management fail to remove management/staff who are clearly hurting the business.
- Staff loses all respect for the company leaders.
- Staff see customers as an inconvenience.
- Staff are unhappy and feel demoralized.
- Customers stop coming.
All businesses cycle through peaks and valleys and temporarily suffer from some items on this list. Then they RECOGNIZE, RESPOND and RECOVER. If the conditions above have become permanent and/or you are experiencing multiple conditions simultaneously, your business is in trouble.
Remember: before you can RECOVER, you need to RECOGNIZE. Ignoring serious problems almost always leads to disaster.
Eyes wide open,