How to Spot a Business Crisis Before It Hits

How to Spot a Business Crisis Before It Hits

By Darlene M. Ziebell

“Every crisis gives off a warning. Most business owners just aren’t trained to see the signs.” — Darlene M. Ziebell

 

INTRODUCTION

You don’t go bankrupt overnight. You don’t lose a top client without warning. You don’t wake up one day to find your team in chaos or your sales drying up without seeing the signs — if you’re paying attention.

But most business owners aren’t.
They’re too busy working in the business, not on it. By the time they realize something’s off, they’re already in damage control.

Let me be blunt: if your business is showing early symptoms of decline and you don’t act, you’re walking straight into a crisis.

As a Business Turnaround Strategist, I’ve been called in to clean up messes that could’ve been avoided months earlier — if someone knew what to look for. This article outlines those early signals.

1. Flat or Declining Revenue (Even When You're Busy)

Just because you're booked solid doesn't mean you're profitable. I've seen 7-figure companies with stacked calendars and empty profit margins.

Warning signs to look for:

• Revenue is flat quarter-over-quarter

• Sales are up, but expenses are rising faster

• You’re discounting more just to close deals

If you're constantly in hustle mode but growth is stalled, it's not a sales issue — it's a strategy issue.

2. Rising Employee Turnover or Toxic Culture

When employees stop trusting leadership, they leave — or worse, stay and disengage.

What I see before the storm hits:

• Quiet quitting or minimal effort

• One or two toxic hires spreading negativity

• Leadership ignoring feedback or conflict

Culture isn't just about being nice. It's about aligning your team around a mission and giving them a structure to win. Otherwise, your best people will jump ship — and your customers might follow.

3. Over-Reliance on One Customer or Channel

I once worked with a business doing $5M annually, and 78% of that came from a single customer. You can guess what happened when that contract was lost.

Warning signals:

• One client accounts for 30%+ of revenue

• One traffic source (like Facebook Ads or referrals) drives all leads

• No backup strategy if that one source dries up

Diversification isn’t a luxury. It’s survival.

4. No Strategic Plan Beyond Next Month

You wouldn’t build a house without a blueprint. Yet business owners run day-to-day operations on hope, gut feelings, and scattered advice from podcasts.

Here’s how I know there’s a crisis coming:

• No written strategic plan or it hasn’t been updated in 2+ years

• Decisions are reactive instead of proactive

• The owner can't clearly explain what winning looks like in 12 months

You can’t scale what you can’t define.

5. You’re the Bottleneck (But Don’t Know It)

If you're still the one approving every invoice, reviewing every marketing piece, and handling every sales call — congratulations, you’re the problem.

I’ve been there. I understand why it happens. But growth doesn’t come from control — it comes from structure.

Early signs:

• Every team member asks for your approval

• Your inbox is a bottleneck

• You feel like “everything falls on me”

That’s not leadership. That’s burnout waiting to happen.

6. Cash Flow Feels Like a Game of Jenga

Cash should give you confidence. If you're constantly shifting bills, delaying payments, or leaning on credit just to operate — you're not managing a business, you're gambling.

Crisis red flags:

• You’re unsure what’s in the bank on any given day

• You delay vendor payments “just a few days” too often

• You’re behind on taxes or payroll

Even fast-growing businesses collapse if cash flow isn’t managed strategically.

7. You’re Avoiding the Data

When’s the last time you looked at your metrics — and really understood what they meant?

Here’s what I hear:

“My bookkeeper handles that.”
“We’re not big enough for KPIs.”
“I just know when things feel off.”

Feelings aren’t strategy. Every business — even a solopreneur — should know their revenue per employee, gross margin, lead conversion rate, and cash runway.

If you can’t measure it, you can’t manage it.

8. You're Getting More Complaints Than Compliments

Your brand is what customers say about you when you're not in the room. And if that conversation has turned negative, it's time to listen.

Watch for:

• Increase in refunds, returns, or support tickets

• Drop in online reviews or star ratings

• Loyal customers starting to disengage

Most customer issues stem from operational blind spots — and if you ignore them, your reputation won't recover easily.

9. You're Marketing Blindfolded

If you’re spending on marketing but can’t tell me what worked — we’ve got a problem.

Real examples I’ve seen:

• A $1.2M company spending $10K/month on ads with zero conversions

• A founder chasing TikTok virality with no customer funnel

• A team running email campaigns without knowing their open rate

Marketing without strategy is just expensive guessing.

10. You Haven’t Asked for Help

The most dangerous business owner is the one who believes no one else could possibly understand their business.

What I’ve learned from turning around dozens of companies:
You can’t fix what you won’t face.

You don’t need more hustle. You need a second set of eyes. And the courage to ask for help before you're out of options.

MY FINAL THOUGHTS:

If you recognize even two or three of these warning signs — don’t ignore them.

The good news? Most crises are avoidable.
The bad news? Most business owners wait until it’s too late to act.

That’s why I created Ask Darlene Live — to give you a real-time diagnosis of what’s broken, what’s missing, and what you need to fix before the next quarter tanks.

If you’re serious about growing — and not just surviving — don’t wait for a crisis to wake you up.

Let’s talk now.

👉 Book a private strategy session now.