Why do companies fail?
Around the world thousands of ventures emerge each year, in which entrepreneurs bet their capital and energy to create a business hoping to have the financial independence they dreamed of in their years as employees. However, around 80% of these companies fail during the first year, and the main reason is an erroneous administration, which can cause not only the closure of the business, but also debt and losses for the entrepreneur.
If you are about to start a business and you are looking for tips to avoid failure, know the most frequent reasons why thousands of entrepreneurs have had to say goodbye to the business of their dreams to detect possible errors in your administration and avoid them:
Most entrepreneurs start a business without having knowledge of business administration and, in their quest to save money and make the most of their capital, decide not to hire the necessary staff to administer it, or to have management software that involves SAP training Canada for its implementation and subsequent management.
Problems such as lack of control over inventory, not following up on accounts receivable processes, mixing of the entrepreneur’s personal expenses with those of the business, not having control over billing are just some that, however small they may seem, begin to accumulate and create capital outflows, which can put business profits and finances at risk.
Lack of financial planning? Solve it with Sap training Canada
In addition to mismanagement, not having adequate planning for fixed business expenses, investments in raw materials or merchandise, payment of salaries, among others, is a mistake that entrepreneurs often make, which leads them to get into debt requesting loans or loans, stop paying your staff and enter a dead end, which could be avoided by having financial planning, budget analysis, short, medium and long-term projections, as well as alerts to detect an imminent crisis and act accordingly. time to get out of it successfully.
Not having market analysis
The owner of a small business probably thinks that market analysis is unnecessary, but it is one of the reasons why a brilliant idea may not turn into a successful business, since the entrepreneur can launch into the market with a proposal that does not meet to the needs of your potential customers by choosing the wrong segment.
Not having a management software like SAP Business One
Once again, a small to medium-sized startup is likely to think that SAP training Canada is unnecessary and that they can keep control of their finances on spreadsheets. However, a management software is the technological tool that businesses need to manage their finances, inventories, human resources, accounting, invoices and other areas essential for business success.
SAP Canada has modules that cover all business areas, such as accounting, sales, logistics, finance, production, human resources, and you can integrate them to centralize control in a single tool, in addition to favoring collaborative work.
Do you need to know if you have enough merchandise to fill an order? Are the expiration dates of the merchandise about to expire? Do you want a sales report to determine the demand for a specific product? With SAP Canada you can do that and more, as it provides you with a comprehensive solution for fast transactions that move along with the needs of the market.