Post by ruhaimabinteria222 on Mar 7, 2024 1:58:26 GMT -7
Closing activities and closing the company: this is the situation that any entrepreneur wants to avoid. Despite efforts, however, the condition is more common than one might imagine. Research carried out this year by the Brazilian Institute of Geography and Statistics (IBGE), revealed that 50% of companies in Brazil close their doors after 3 years in operation. Explanations for the early mortality of these enterprises can have several origins: the country's economic situation, financial difficulties and an already obsolete exploited market, among many others. In most cases, this stance is recommended and requires wisdom from the entrepreneur, as it is the way to offset losses and protect some assets. However, how to recognize that the business is not going well? What are the main signs and indications that I should make such a drastic decision? In this post, we will address the main characteristics of companies at risk of bankruptcy, also showing the necessary paths to reverse this situation or, if applicable, formally close down their activities.
The four main signs that a company is doing poorly It is clear that a drop in sales is the main sign that your company is facing difficulties , especially if this drop impacts profit margins. Despite this, if the reasons that justify low profitability are previously identified, the entrepreneur can easily take some measures to get the venture back on track and not have to close the company. Know the main signs and learn how to overcome problems. If your company has one or more of these characteristics, it is a sign that something needs to change: 1 - Increase in the number of customer complaints It is unlikely that a customer who is British Student Phone Number List with your products and services will do business with you again. The first point that the entrepreneur must observe is whether customer complaints have any pattern, so that the problem can be definitively resolved. There is no point in acting punctually if the problems are in the company's structure. In most cases, mistakes are made due to a lack of employee training and flaws in internal processes , which must be resolved and identified through dialogue. 2 - Increase in employee turnover There is no need to look for external sources to identify whether your company is doing poorly. Often, the answer is given internally, by the employees themselves, when they frequently leave the company.
Working with dissatisfied professionals means delivering poor quality service. To overcome this problem, the entrepreneur must maintain an open channel for dialogue between employees, a measure that is even easier in micro and small enterprises. Knowing how to listen to criticism and seek diplomacy is the role of any entrepreneur. 3 - Impacts on cash flows According to Sebrae, financial disorganization is the main cause of company mortality in Brazil. Even if the business is going well, amateur management will easily make mistakes that will compromise the company's cash flow. To avoid this problem, the entrepreneur must manage cash flows well , always planning their inflows and outflows. Furthermore, it is necessary to have control over the fixed and variable expenses of the enterprise, so that the entrepreneur can establish clear goals to cover these expenses monthly. 4 - Low productivity Finally, another very common problem in companies, which will directly impact their success or failure. Unproductivity is often linked to rework or work overload. In addition to professional training, it is necessary to improve internal processes so that the company's operations run more smoothly.
The four main signs that a company is doing poorly It is clear that a drop in sales is the main sign that your company is facing difficulties , especially if this drop impacts profit margins. Despite this, if the reasons that justify low profitability are previously identified, the entrepreneur can easily take some measures to get the venture back on track and not have to close the company. Know the main signs and learn how to overcome problems. If your company has one or more of these characteristics, it is a sign that something needs to change: 1 - Increase in the number of customer complaints It is unlikely that a customer who is British Student Phone Number List with your products and services will do business with you again. The first point that the entrepreneur must observe is whether customer complaints have any pattern, so that the problem can be definitively resolved. There is no point in acting punctually if the problems are in the company's structure. In most cases, mistakes are made due to a lack of employee training and flaws in internal processes , which must be resolved and identified through dialogue. 2 - Increase in employee turnover There is no need to look for external sources to identify whether your company is doing poorly. Often, the answer is given internally, by the employees themselves, when they frequently leave the company.
Working with dissatisfied professionals means delivering poor quality service. To overcome this problem, the entrepreneur must maintain an open channel for dialogue between employees, a measure that is even easier in micro and small enterprises. Knowing how to listen to criticism and seek diplomacy is the role of any entrepreneur. 3 - Impacts on cash flows According to Sebrae, financial disorganization is the main cause of company mortality in Brazil. Even if the business is going well, amateur management will easily make mistakes that will compromise the company's cash flow. To avoid this problem, the entrepreneur must manage cash flows well , always planning their inflows and outflows. Furthermore, it is necessary to have control over the fixed and variable expenses of the enterprise, so that the entrepreneur can establish clear goals to cover these expenses monthly. 4 - Low productivity Finally, another very common problem in companies, which will directly impact their success or failure. Unproductivity is often linked to rework or work overload. In addition to professional training, it is necessary to improve internal processes so that the company's operations run more smoothly.