What are signs that a company is going bankrupt?

Question

I keep seeing signs like not paying til 3 days after, no real good benefits, 1 sick day, not getting new software. My boss said he was going to make changes and it would benefit the people who stick with him. A friend of his told me that he does not have much money any more. He keeps telling us there is a lot of work but it is not being given out by anyone. He seems to be out of the office a lot and doesn't do much to change the situation. What the hell is going on here? The one good thing about this is that he is very flexible, I have been missing a lot of days on purpose but he does not fire me. It is not because of affirmative action because there are many asians here already. Please help!!

Answer 1

He sounds like a poor business man and poor businessmen run poor businesses.

Answer 2

None of the signs you list are necessarily signs of bankrupcy.

It does sound like there is definitely a cash flow problem, but that is not unusual for many small businesses. As far as giving crappy benefits, could just be he's just a tightwad. As far as the software: is that a want, or a need? Could be he doesn't think there'd be enough vaule from buying it to make it worth the cost of purchase.

Here is a list of signs that a business might be in trouble
(it's written for businesses that are trying to figure out if another business is credit worthy, but the signs are the same)

Look for signs of looming bankruptcy.
A business customer who is at risk of filing for bankruptcy may exhibit warning signs, which you can catch if your radar is on. Start asking questions if you notice a customer's:
pattern of late payments
selling off of assets
changes in company personnel
changes in payment practices
changes in buying patterns, or
doing business in an industry or region that's undergoing economic decline.

Bounced checks and on being changed to "cash only" by your vendors are also signs that I have seen. The above list pretty much fit the company I worked for that filed bankrupcy, down to selling off equipment, etc.

I would just look for a better job, because of the bad benefits. You deserve better! Keep the one you have until you find a new one, tho.

If he did file for bankrupcy before you get another job, just file for unemployment til you get get a good job.

Good luck to you!

Answer 3

One key sign is whether vendors (who aren't getting paid) stop doing business with the company. If the boss isn't keeping his accounts paid or current, other firms will cut off the goods. So if you haven't seen any new coffee in the breakroom, or have run out of blank paper for your printer or copier, that's a pretty good sign that things are rough. Having said that, bankruptcy is a move intended to keep a company in business, and is usually worst for stockholders, not necessarily the employees (or all of them anyway).