Juan Méndez opened his Trimmings store in the city center. In principle, success accompanied him, and all that this entails: respect for his loved ones, car of the year, a beautiful house, Juan gave himself his tastes, he had achieved a good status.
However, Juan could not support his lifestyle, and ended up closing the business and with many debts. Juan still dreams of the usurers who visited the store every day to collect interest on the money they loaned him to cover his obligations to the banks, until he couldn't take it anymore.
This article aims to analyze the errors that led Juan to failure. Do you identify with some of them?
Training the root of the problem: The micro-business sector is reluctant to receive managerial training and allow its collaborators to receive training, viewing it as a waste of money and resources. It is very important that the small businessman receives training that allows him to assess the basic aspects for the management of his business, which are strictly related to the following factors:
- A simple market study is not done to estimate the demand for the company's product and / or service, or to estimate the existing supply in the market. The company's money is not differentiated from the owner's remuneration, many owners use the profits of the company for personal expenses, distracting working capital in resources that do not generate profits. The company is not seen in perspective, Many times the businessman invests his time in operational tasks, losing sight of the macro aspect of the company, the strategic aspect. There is no timely and accurate information that maximizes the probability of making the right decisions: financial statements, market studies. The union is the force: the development of strategic alliances would allow it to compete in an increasingly globalized market. Many SMEs,They believe they can get ahead on their own, but in this new paradigm, the important thing is to achieve strategic alliances and mergers to achieve economies of scale.
Los puntos precitados, son la parte macro del problema, estos deben ser desagregados y analizados, para tomar las decisiones que permitan a las Pymes trabajar más en función de un mediano y largo plazo. Para esto se debe tener claro que las personas pasan, pero las instituciones y empresas deben continuar. Con el firme propósito de colaborar para que cada vez más de nuestras PYMES den ese paso, se presentan las siguientes sugerencias:
- Before thinking about setting up a business, the entrepreneur must carry out a market study. It is not necessary to hire a consulting company, simply study the behavior of demand and supply, in order to determine, if there is an unmet need in that sector of the economy that is intended to operate. The employer must assign a salary, and commit to not Spending more than what is established so as not to distract working capital from the business in other superfluous expenses. The entrepreneur must invest more time in analyzing the financial statements, preparing the strategic plan, marketing plan and seeing that what is planned is similar to what has been executed and of course have profitability to ensure long life to the company. Stop being a little selfish and think "small".To grow and consolidate, strategic alliances must be made with entrepreneurs in the same sector, which in turn will allow economies of scale and thus be able to compete with larger entrepreneurs. Always remember that training is not an expense, but rather an investment, where the rate of return is infinite.
Unfortunately Juan Méndez did not seek advice, his company lived and died, in an eternal short term.
It is important that SME entrepreneurs take these suggestions into account, now that the National Learning Institute is going to give them the opportunity to have virtual advice through a website, where they can interact with their advisers, very soon the INA will carry out the official launch of the platform nationwide.
