The data is as follows: all expenses on purchasing materials, rent, marketing, production, taxes, etc. will amount to 1,000,000 rubles. Income is 1,300,000 rubles. This means that the annual profit is 300,000 rubles. This is the final result for the year. But the managers did not calculate the cash flows for each month. As a result, it turned out that in the fourth month of work there was a cash gap.
This means that at a certain point in time
There is not enough money to be able to pay expenses. The problem is that all the money has been put into “circulation”: materials and machines for work have been purchased, workers have been paid. There is no money left to pay off the urgent loan to the bank, and nigeria phone number library new loans are not issued to the company. It is becoming difficult to do business, the company may leave its niche. Although, it would seem, things are going well. 4. Decrease in the efficiency of internal business mechanisms.
The emergence of problems within the company
Deterioration in the efficiency of the staff, personal conflicts within the team or a decrease in employee motivation may also indicate a difficult we wear our own shoes and carry situation in the business. Inefficiently built business processes usually lead to increased production costs, increased product costs and loss of competitiveness. 5. Increased competition in the market If your project faces increased competition , it may weaken the company.
If you feel more intense competition
It means that a crisis in business may soon arise. At a minimum, for example, sales will fall and profits will decrease, as customers will start considering competitors’ offers. You will have to fight harder for customers, invest additional money in advertising and malaysia data marketing. If you fail to withstand the onslaught, there is a risk of losing a significant market share or closing your business. How People Fail in Business: at several stories in which business owners had to face really serious problems and failures. Thanks to these examples, beginning entrepreneurs can learn not to make mistakes and understand how to act in a given situation if something goes wrong.