When starting a business we expect it to prosper and be very successful, however, it is common that this does not happen and the company ends up bankrupt. This is mostly due to lack of efficient management and to avoid going through this it is essential to be well prepared.
To ensure the survival and success of your business, we have prepared a list with some golden tips so that with good planning and organization you go well away from bankruptcy.
Have planning
Starting a business without planning can be one of the biggest mistakes of an entrepreneur. This step is essential to ensure that all processes are done in the best possible way to contribute to the company’s growth.
The losses of starting a business without planning can be irreversible, so be aware of this factor and make sure to follow each planned step.
Study the market
The entrepreneur who understands the market and his customers is many steps ahead of his competitors. Working with a niche that you master significantly increases your chances of success and leaves you farther away from the possibility of bankruptcy.
Attention with monthly payments
Your company’s expenses cannot be greater than your turnover, however, if you do not optimize these expenses the risk of your business going bankrupt becomes very large.
Bills such as rent, electricity consumption, the internet, employees’ salaries among others can make your monthly expenses go beyond your budget. That’s why it’s important to take the time to review if these figures are not above the amount you can afford.
This point of your company can be reviewed at any time, so carefully analyze if some expenses can not be cut or optimized in order to reduce this account at the end of the month.
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Separate individual and corporate accounts
For most entrepreneurs knowing how to separate their personal finances from the company is a real challenge, however, this habit is indispensable for the financial health of their business.
The most practical way to accomplish this separation is to make financial control to determine everything that goes in and out of the company. From this calculation you will arrive at an approximate amount of your profit, which is the maximum you can spend on personal expenses.
Responsibility with customers and suppliers
A company that fulfills its responsibilities has a much better chance of staying alive than those that neglect their contracts.
When establishing a business relationship with a supplier it is of utmost importance that you fulfill all your obligations and not only that but that you are on time.
When it comes to your company’s relationship with customers the issue is even more serious, after all it is difficult for a customer to return to do business or recommend, a company with which he has not had a good experience.
Give value to the after-sales
Even after closing a sale, delivering the products, or performing a service, it is important to continue with the channel open for future questions, complaints, or customer demands.
After-sales is a stage often neglected by companies, but it is in this memento that customer loyalty and guarantees the next sales.
Now that you know the safety tips to not bankrupt your business put into practice and ensure a long life for your company. Check the Easy Work Space plans and find out how to improve your business with us.