Yield to Warning Signs

A yield sign instructs drivers to slow down and, if necessary, stop to allow other road users, vehicles and pedestrians, the right-of-way.

Likewise, that honey-yellow or orange coloured amber light in the middle of the three lights on robots – Namibia’s colloquial term for a traffic light – serves to warn motorists to move with caution as they approach a pedestrian crossing, road construction work site, intersection or a railway crossing.

Although as motorists they may have a different opinion about Namibia’s traffic regulations, it is also applicable to taxi-drivers in Windhoek and seven-seater drivers on national roads.

From an early age, we are taught that robots incorporate three lights, for a specific purpose.

Red on top signals the need to stop and green on the bottom shows all is clear to move. The amber light in the middle means slow down and prepare to stop dead in your tracks.

For an ever-increasing number of motorists and pedestrians, seemingly this light means moving with haste and speed before it changes to red.

The purpose of that middle amber light of a robot is to manage vehicle and pedestrian movement and flow. Thereby minimising the possibility of accidents, fatalities and reducing traffic congestion.

Amber lights are also used as other warning signals: on vehicle dashboards when safety belts are not engaged, of possible engine malfunction, faulty brakes or a battery, air bags that have been manually switched-off, fuel that is running low, or a vehicle that is due for a service.

In business, a flashing amber light indicates imminent equipment failure. It warns that corrective action is urgently needed or it could result in a loss of production. An example in food processing could be indicating a refrigeration malfunction and the warning of cold-chain disruption, which if left unattended could cause costly product spoilage.

There are also invisible amber lights that provide warning signals, in business and in life.

In life, there are the underlying health issues that often begin with warning signs in the form of a lump, bump, itch, blurred vision, or an irritating cough.

Venturing into business is always a challenge and smart entrepreneurs are aware of the importance of avoiding recklessness.

They comprehend the importance of yielding to warning signs that come as a precursor to business failure.

Often the warning comes in the manner the entrepreneur manages cash flow or how cash is being mismanaged, with more money flowing out to cover operational expenses than the business generates to cover costs and yield a profit.

Like ignoring the amber light of a robot could result in an accident, in business, an entrepreneur’s failure to remain alert and take swift decisive action will result in the enterprise’s demise.

There is no sense in entering contracts where in monetary terms the sale is large, but the profit is minimal, or when the customer takes forever to pay.

Procrastinating on decision making and the absence of decisive action that could even include reducing personal income, reducing marginal product lines, closing unprofitable branches and reducing staff numbers, will result in business closure.

Economic headwinds remain strong and economic recovery remains sluggish, so it is wise to yield to warning signs in business.

• Danny Meyer is reachable at danny@smecompete.com