Recognizing Problems Early
Nearly any problem can be tackled effectively if you recognize it sooner rather than later. In fact, minor challenges often turn into major problems simply because the person in charge wasn't willing to face it down early enough. Of course, you may realize that there's a problem somewhere, but not be able to assess exactly where it is. In this case, it's a good idea to bring in some kind of expert.
Your accountant can be invaluable in this regard, especially if divining profit and loss statements is not your strong suit. An accountant should be able to explain the typical financial ratios for your particular industry, help you measure your own performance against them, and identify trouble spots such as accounts receivable on your financial statements.
Although an outside source of help can pinpoint a problem more accurately than you might be able to, you also need to trust your instincts. Listen to the experts, but if you don't believe they have a good “feel” for your business or if the advice doesn't suit your needs, then thank them sincerely and move on.
Other sources of help include small business development offices, colleges or universities (they often have mentoring or business analysis services), online Internet forums (as long as you know that you're dealing with a reputable Web site), and trade-based associations that you belong to. In the United States, there's also SCORE — the Service Corps of Retired Executives, who act as consultants to help you analyze your business and discuss problems and solutions.
