Bankrupt business is not always caused by fatal mistakes. Unconsciously, small mistakes that could have been easily overcome but because of being trivialized often backfire on the survival of the company. One example is ignoring bookkeeping management. You can search for Bookkeepers near me to handle the task. Here are some mistakes that can ‘kill’ your business if not resolved immediately.
1. One chooses the leader of the company
The leader must be able to direct and control the company so that it remains on the right path towards the goals set. Unfortunately, not a few companies have to collapse because of poor leadership. Mistakes in choosing leaders affect the grand design of achieving the goals set. Leaders who are not able to lead, cannot be responsible for realizing the plan certainly will not be aligned with efforts to achieve goals.
2. Setting unrealistic goals
Every business must have a goal to be achieved. In determining these objectives, companies must pay attention to the capacity of resources owned, so that the goals set are realistic. Realistic goals are certainly more likely to be achieved.
The fact is not a few company owners who feel that the business has developed and developed rapidly so that they are trapped in the error of setting goals that are too grandiose without regard to and considering the number of resources owned. As a result, the goals set are not realistic, making it difficult to achieve.
3. Bad and ineffective communication
Good and effective communication will create the same perception about the company’s vision and mission. Furthermore, this will produce the same steps among the work teams in the company. You can imagine if communication is so bad and ineffective. Of course, it will create perceptual inequality so that each team goes in a different direction, so that good collaboration is not created to achieve the company’s goals. Besides, poor communication within the company also results in internal conflicts prone.
4. Do not understand the basics of financial management
A company leader must understand the basics of financial management in business. This is very important because it will influence policy and strategic decision making that is right for the survival of the company. If the leader does not understand basic finance in business, then that is a very fatal mistake. Without realizing it, such a leader will make policies that are at risk of loss of income.
5. Ignoring employee background
Not a few employees who actually ‘betrayed’ and take advantage for themselves by manipulating company financial data. Call it the purchase price mark-up, create fictitious invoices and other frauds that certainly hurt the company’s finances. This is a fatal error that can cause bankruptcy if the company is not detected early.