According to data from the Office of Small and Medium Enterprises Promotion (OSMEP), there are 50% of SME businesses that close after just 1 year, and there are still more than 95% that close after 5 years. Therefore, it is wise to learn from mistakes as to why most SMEs fail and are unable to survive according to their set goals.
- There is no clear business goal.
More than 72% of SME businesses do not have a business plan for running their business. However, if there is a lack of good business planning (Business Plan), it will cause problems in business operations. Because if the entrepreneur still doesn’t know who the target group is How valuable is the product or service to the target audience? Including not knowing the short-term and long-term plans for how to proceed. What happened was just solving immediate problems on a daily basis. Problems may arise from other variables. which can cause business to falter In addition, not being able to see the big picture of the business in a comprehensive way causing a lack of continuous action Affects smooth business growth in the long run.
2. Do not separate business bags from personal bags and provide legal information. account incorrectly
More than 67% of SMEs have a habit of not separating business and personal wallets and mixing business and personal money. Accounting information has been prepared incorrectly, which, in addition to being unreliable in the eyes of financial institutions, is a disadvantage. In the case that there is a plan to find funds to support future business expansion. It also makes you not know that it really is. What are the real costs of the business and how much cash flow is left in the business?
