10 Financial Problems in Business Cause and Their Solutions

financialtreat – will explain about the 10 Financial Problems in Business Cause and Their Solutions that you will get in the following article. let’s look at this article carefully!

Micro, Small and Medium Enterprises (MSMEs) is a name for businesses built by individuals, small business entities or households. The lack of news about business management often causes problems, including the case of MSME finances. Even though they are built on a small scale, MSMEs have a big effect on the economy in one country including Indonesia. Well, for that you have to solve financial problems in business.

The more MSMEs that develop in Indonesia, the more job opportunities will be created. This is certainly good considering that the unemployment rate in Indonesia is still quite high. To help MSME fighters to deal with MSME financial problems, the following are some of the financial problems in business that often occur and solutions for handling them:

10 Financial Problems in Business Cause and Their Solutions

1. No Budget Planning

The first and frequent financial problem of MSMEs is that entrepreneurs do not make careful budget planning. Please note, even though you are building a business on a small scale, budget planning is still needed.

Some of the points that must be in the budget planning include the business capital owned, operational costs, promotional costs, liability costs and other costs depending on the business model you will live. Not only that, through budget planning you will also know which expenses are mandatory and which expenses you can postpone. Don’t be too excited when starting a business, because a business must actually be done with mature tactics.

2. No Mentor

If you know someone who has successfully built their business, it never hurts to make that person your business mentor. Why are mentors important? Because learning from a mentor who goes directly in an exclusive field by learning through books will bring different results. If you have a mentor directly, you can immediately discuss about your business planning and also what problems you are facing.

So many businesses fail simply because the business owner is reluctant to learn from the mentors. So, if you have the opportunity to learn directly from a mentor, you should not waste the opportunity. This is good for containing MSME financial problems that plague your business.

3. Lack of Discovery

Sure or not, discovery is important for every business. Basically, consumers are always looking for something new from each product. For this reason, product discovery is the most important thing. Not only that, another invention that you have to look at is the discovery of tactics, whether marketing tactics, distribution tactics or other tactics.

Indeed, in doing business you must be observant of the interests and needs of consumers and potential consumers. That way, you can be present to meet the needs of these consumers and potential consumers.

4. No Judgment

The next case of MSME finance occurred due to the absence of a business assessment. Assessment is an activity to find out what are the shortcomings and privileges of the business you are currently in. Through assessment, you can realize which parts should be improved, improved or maintained.

Many times attempts to ignore the existence of judgments on the grounds that there is no time to do so. The assessment does not need to be done every week, because just doing an assessment once a month is good enough.

Not only that, but you can also do market analysis and research on competitors to help your evaluation activities. You can see what the shortcomings of the competitors are then turn them into privileges that your business has. Believe me, assessment activities can prevent you from msME financial cases that often hit.

5. No Financial Statements

Do you know why financial statements are important for a company? Yes, because through financial statements you can see how much capital you have spent, how much profit you get and also other useful news to manage business tactics in the future.

Although financial statements have important benefits, unfortunately there are still many MSMEs that ignore financial statements. Some of them think that just recording expenses and income is enough.

But actually, financial statements contain more info than just money in and money out. If you don’t have the ability to make good financial reports, then there is nothing wrong with hiring professional services. Think of this as a form of investment in your business so that the business avoids MSME financial problems that are likely to be detrimental in the future.

6. Conventional Bookkeeping

In today’s sophisticate times, it is no longer the time to do bookkeeping in a large book that is outlined to form a table. Why?

Because not only does it take a long time, you will also find it difficult to see the records of the long-passed year. Start to create bookkeeping using existing technology such as Microsoft excel.

If you want to be even more sophisticate, you can use the electronic cashier feature from various vendors such as Moka Poin of Sales, one of them. One of the specialties of the electronic cashier feature is that you don’t have to bother compiling your own financial reports, because various reports are already at the electronic cashier. Easy, right?

7. Less Marketing Tactics

One of the simple mistakes that turne out to bring financial cases for MSMEs was the lack of implementing marketing tactics. Please note, marketing tactics play an important role for a business and moreover marketing can be recognize as the spearhead of a business.

No matter how good the quality of the product or service you offer, if you don’t do enough marketing, potential customers will not understand the existence of your business. For this reason, it is very important to compile marketing tactics, especially before the business is done, why?

This is to add an image that understands who your target is going to be and how to sell the product. Make it a habit to make plans before doing marketing, because this will help you to sell products to the right people.

8. Incorrect Management of Stock of Goods

MsME financial cases can also occur if you do not manage the stock of goods properly. If you have been thinking that managing stock of goods does not require a mechanism that understands, then you are wrong.

The worst thing that can happen is that the implications of managing the wrong baran are goods that are damage and cannot be sold. Of course, this will be very detrimental. So you should learn how to manage a good stock of goods to avoid this problem.

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9. Lack of Capital

The most recent and most frequent case of MSME finance is the lack of business capital. Lack of capital in the middle of the business can have an impact on the absence of budget planning when you want to start an unexpecte business.

One solution to overcome this case of business capital shortage is to take a business loan. It should be understood that taking a business capital loan can be a solution or disaster for business people. Therefore, be sure to take business capital tailore to your needs and ability to pay.

Not only that, take a business capital loan from a party that you can be sure of, for example, those who are license and supervise by the OJK such as Koinworks. Why should it be at Koinworks? Because Koinworks is a formal forum that is already committe to helping the growth of MSMEs in Indonesia through Koinbisnis business capital loan products. Through Koinbisnis, you can get a business capital loan of up to Rp. 2 billion and with a very low interest rate starting from 0.75Prosen only per month.

10. Very Much Debt

The danger of borrowing debt is if you can’t pay off the debt, if the high-interest loan makes your debt bigger day by day. The biggest consequence if you can’t pay off the debt is that the assets you have are sold or confiscate by the bank. Please note that a conducive debt ratio is below 40 Percent and the maximum is 50 Percent, the rest above that is not recommende because it is harmful to your business.

Well, those are some financial problems in business so you must be able to solve financial problems if your business wants to be successful, thank you.

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