Empowering can be like a soap opera. In the chapter of last Saturday (23) of the soap opera Vale Tudo, the villain Odete Roitman (Débora Bloch) reported her new partner, Raquel (Taís Araújo), which would close the restaurant of the young lady.
In real life, the maneuver can be questionable in legal terms, as Brazilian law imposes greater obstacles for majority members to do as the villain. However, Brazilian companies live other types of challenges which causes one in four companies that generate jobs in the country does not survive the first year of operation. The data is from a report from the Brazilian Institute of Geography and Statistics (IBGE) and shows the high rate of business mortality.
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In 2017, according to data, only 76.2% of employing companies followed active by 2018. In the long run, the survival rate plummeted: only 37.3% managed to be open after five years.
In absolute numbers, the survey “Demography of Entrepreneurship Companies and Statistics” recorded 210.7 thousand “deaths” of companies in 2020 by closing activities or by interruptions of more than two years.
For Rico’s financial educator, Thaisa Durso, the survival of a business depends mainly on financial planning. “Understanding the difference between fixed and variable costs, calculating the profit margin and knowing the equilibrium point is essential to avoid damage and ensuring that each sale contributes to the growth of the company,” he says.
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Paths to survive
For the expert, separating personal finances from business is another critical point for those who want to grow sustainably. “Using the same account for personal expenses and the company makes it difficult to know if the business is making a profit or if what was spent came from their own salary,” he warns.
Recommendations to survive are still maintaining separate bank accounts, set a fixed pro-labore, record all financial movements, and rely on management tools to track cash flow.
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In the evaluation of Thaisa, discipline and clarity in management increase the chances of longevity. “Knowing exactly how much it costs to produce, what is the margin and how many sales are needed to reach the equilibrium point acts as a business control panel,” he says.
