Management consultant Douglas J. Enns started assembling a list of such signals after he noticed that companies that get into difficulties share common moments of blindness.
Here, in Enns’s words, are seven of those early warning signals:
- New competitors are discounted
- In-house empires arise
- The sales cycle lengthens
- Key people start to behave differently
- Expansion abroad is used to compensate for slow domestic business
- There’s profitability without free cash flow
- The company buys a competitor to restore earnings
Read all the details here - and see what happened when companies missed acting on these seven early warning signs of trouble.