What are telltale signs that you are working with a sinking ship?

[“Signs that you are working at a company that may not be saving long:

  • Absence of management
  • No clear course of the company
  • Many angry customers
  • No signs of quality enhancement/care
  • Bailiffs who come to visit
  • Colleagues who walk the edges off without striking someone

“,” I worked as a mortgage and insurance consultant at a number of brokerage firms, two of which were under, one in 2001 due to a much too high spending pattern by the MEGALOMANIAC Director-owner under the adage of “the cost goes for the benefit and the other in 2010 by the combination of the economic crisis and also poor cost control.In both employers, the Director-owner has done as long as possible as if his nose bled and sustained that nothing was going on. A number of signs on the wall in both companies were the following:

  • Conversion and results are I.T.T. usual no longer announced during quarterly meetings
  • Holiday money will be paid later than in May
  • The request is made to pay the holiday money spread
  • Change of house banker
  • The request to employees to carry out tasks other than those belonging to the actual task description (in the context of “carrying out all activities”)
  • Shrinking the weekly home advertisements in the home newspapers and house-to-house magazines
  • Stopping the publication of the own advertising sheet without indicating publicity
  • The payout date of the salary is shifted a few days backwards
  • Branches are closed
  • Depreciated material is not replaced
  • Terms of employment are questioned and broken up
  • Management often to external appointments without commercial purpose (read: With bank, accountant and potential lenders)
  • Declining turnover

Since the years 1970 models have existed to predict bankruptcies, based on accounting data.The clearest signs of short-term failures are:

  • The accumulation of unpaid debts to privileged creditors, in particular the Tax Authorities , Social Security and bankers (arrears of interest).
  • Also late payment of wages.
  • Systematic late payment of suppliers (= Quasi free credit).
  • Pile-up of unsold stocks (industrial or trading company).

These are some less reliable indicators at start-ups.And it assumes, of course, that the accounts have shown these problems correctly.

There are many signs which may indicate the demise of a company where you work, some of which I will mention, also read the replies of other people to this question.

  1. Failure or non-timely receiving of wages or fees may also mean that it is less well
  2. Colleagues are dismissed while there is no reason for it can be a clue
  3. Bad numbers are announced several years in succession, even this can be a clue
  4. There are few assignments and less work if you are used to this company.
  5. When large measures are announced by the company to print the costs
  6. If the resources such as machines and materials or tools are maintained less frequently as necessary, this may indicate a business problem.
  7. Things happen where every employee can reasonably know and expect that when it continues that a demise cannot stay out.

One example is that there are regular accidents that threaten people or even entire neighbourhoods or cities and there is little to nothing to improve the situation than it may be that a competent court decides to permanent closure or that high Fines that depend on the financial buffer of the company at any given time will no longer be payable for a company. Fines from the government or the European Union can any company legitimately or wrongly help soap, an example of a company that has imposed high fines on several occasions is Google but also internet giants are in the long run in trouble when they regularly agree Be plagued with billions of fines

There are lots of other things that you could think of which could also indicate that things are going to be a bit worse if it should be, but sometimes it is not that an employee can notice that something is wrong and then it gets Staff very short before or even after bankruptcy only to hear that the canvas has fallen, this usually occurs only in large companies with many staff such as hospitals, banks and large chain stores so it is not always clear in advance that there Business problems are or that as you mentioned it, you are working on a sinking ship

Perhaps this answer is not really complete, but I hope that this answer will help you in the right direction and that this answer can be a good contribution.

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