Extensive inventories word a healthy biz.
Don Magruder, CEO of Ro-Mac Lumber and Service, located in Florida, warns that most store closing decisions holding berth weeks or months before the actual coincidence. Recognizing the signs of bind may administer the extent for an Clerk to practise the proceeding to another position to escape a layoff or to another corporation altogether.
Inventory Reductions
Stockpiles of goods is an indicator of economic health. Low business stockpiles and waiting to constitute items until an disposition arrives display a business near bankruptcy. Without stock, the firm cannot fill orders in a well timed step. Whether the economy is healthy and the gathering all the more keeps stock levels low, closing is a various opportunity.Slow growth in an economy in which other companies in the same industry appear to be thriving marks a troubled company. Christopher Lochhead, CBS strategy adviser and former technology executive, notes, "Successful companies grow faster than their market does." If a company's growth fails to at least meet the competition's, there is trouble. If the company ranks well below the other companies, the company may be failing.
Staff Departures & Company Layoffs
Companies with blimp stocks of stock may break ground discounting prices and liquidating inventory when a closing is near. Another in evidence notice of misery is selling off argument equipment and fixtures.
Slow Growth
Layoffs obviously signal economic problems. Combine layoffs with a mass exodus of middle and upper management and that spells doom for a company Lochhead warns that quality people contribute to company growth and prosperity, and when those people leave, it can trigger a chain reaction of A-players moving to the competition or leaving the area. The lesser talents at the company take over and promote the bottom level of talent to their former positions. Lochhead notes that when this process happens, "you wake up and are working with a bunch of morons." Staffing with morons simply exacerbates a downward spiral for a company.
Poor Communication
Poor communication between employees and executives may illustrate a company with economic problems. When faced with specific questions about company economic health, companies on the verge of closing tend to close down all avenues of communication. Lochhead says when companies begin failing, "executives go into hiding." Memos and communications, if made, include double-speak that provides no concrete information and includes terms such as "mitigating circumstances," "negative market conditions," "economic pressures," "challenges."
