5 Effective and Powerful Ways to Prevent a Business from Bankrupting

dulichbinhhung.xyz – The word ‘bankrupt’ is a scourge for all business people, be it small, medium businesses, even businesses that have been running for decades. So that various efforts are made to prevent businesses from going bankrupt.

Before I proceed to the main discussion, I would like to mention several large companies that have been forced into bankruptcy. What are these large companies? Maybe you are familiar with the following company names:

  1. Nokia
  2. Sony Ericsson
  3. Kodaks
  4. Panasonic

Must be familiar, huh? Moreover, Nokia has long been involved in the world of mobile phones. In addition, many print magazines have closed, one of which is BOLA. Terrible, right?

Do not worry. This time I want to give 5 effective ways to prevent a business from going bankrupt.

1. Digitization

Have you ever imagined the significant changes that occurred from the 90s to the current era? Of course there are a lot of them, and the biggest and most significant change is digitization.

Almost all components in life are turning digital. An example is that now many news media have turned online, sales have gone online, motorcycle taxis have gone online, taxis have gone online, and there are many other examples.

Of course digitalization also has an effect on components of the business world such as marketing media, product displays, and many others.

This time I have to highlight digitalization in the marketing component, because marketing is definitely an important component in your business.

Have you ever heard of Digital Marketing?

If you are or are going to run a business, then you must be familiar with digital marketing, or better known as Digital Marketing.

Because currently marketing or marketing in digital form is an important key in promotion. If you don’t understand what digital marketing is, it’s easy to advertise on social media like Facebook, Instagram, and the like.

These things are one of marketing in the form of digital or digital marketing. If you have done this, then you have implemented a digital marketing strategy.

If you haven’t done it before, now is the time for you to do this and learn more about digital marketing so that your business continues to grow in the digital era.

2. Products According to Market Needs

We definitely know that the product is the heart of your business. Products can be services or goods. At the beginning of the establishment of a business or business, new and fresh products are the main attraction for consumers.

Short success could have been achieved by your business. At this stage, don’t focus too much on product development.

Because if you focus too much on product development, it will take up a lot of your time and attention so that you will forget about product market principles or creating products that suit market needs.

As a result, you will encounter bitter facts because the product you have developed is a loss and threatens to bankrupt your business. Product and effort for its development to be in vain.

Then the solution is, develop products that are the needs of your market or target market to prevent the business from going bankrupt. If you succeed in implementing this, then I’m sure your business will grow very rapidly.

3. Capital

The amount of capital you have must be balanced with the size of your business debts and receivables. Businesses that have large debts with high interest rates can lead to low profits.

Even businesses will continue to lose money. Likewise, accounts receivable that are too high will cause the income balance to become unstable.

Therefore, you must have capital that is comparable to your business debts in order to prevent the business from going bankrupt.

To borrow capital from a bank, you must prepare neat and organized financial reports.

4. Financial Reports

An equally important problem that can bankrupt a business is the inability to manage money.

In fact, there are lots of MSME entrepreneurs who can make money, aka their products sell well.

But they don’t have a plan or a way to manage money properly. How much is allocated for business capital, how much for owners, how much for further investment?

Sometimes cash flow problems can also damage the financial health of your business. So you have to manage financial reports to prevent the business from going bankrupt.

How to create and organize easy and practical financial reports?

In today’s digital era, there are many practical and instant accounting software such as Jurnal.ID. You don’t need to prepare financial reports manually.

You only need to connect your cashier system (not all cashier systems) to the software, then automatically financial reports can be properly arranged and organized. Very easy huh?

5. Online Cashier System

MWhy is online cashier included in the 5 effective ways to prevent a business from going bankrupt? Because the right online cashier system can be useful in growing your business.

In point 4, I mentioned that preparing financial reports would be much more practical using accounting software that is connected to an online cashier system, right?

So, this time I want to specifically discuss the benefits of the online cashier system for you.

The online cashier system will be a practical cashier tool for serving unlimited transactions. You also don’t need to worry about lost sales data because all data is stored in the cloud which has high security and limited access rights (only owner).

Conclusion

You also don’t need to manually recap sales anymore, because with an online cashier system, you can generate sales reports automatically and enter your online accounting books directly through accounting software. If you run a cafe, bakery, food & beverage, barbershop, and other SME scale businesses, then the last point is the ultimate weapon for growing your business.

Hello, my name is Laura Keyhl usually called Laura. I am a professional writer on several sites, one of which is this blog.

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