Demand is falling
There is not enough money to pay employees
Court costs and other legal problems
Rental prices have risen sharply
Repair expenses
Deliveries are delayed
Costs can be divided by type into variable and fixed.
Variable costs include costs that are affected by production and sales volumes. These include the costs of raw materials and materials, storage and transportation of products. Unlike variable costs, fixed costs remain unchanged. Even if volumes decline, fixed costs remain the same.
Fixed expenses include:
Using constant deductions from profits, make a calculation to form a financial reserve for the enterprise. Choose one of the methods: deposit fixed amounts by month, for example 5%. The percentage can be increased depending on the condition.
Create financial reserves from free money.
With good money management, your risks of bankruptcy can be reduced.
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