In 2016, there were 2 million micro-enterprises employing less than 10 people with an annual turnover or annual balance sheet total of less than 2 million euros. This represents an increase of 5.2% since 2015 philippine cellphone number code and an increase of 16.8% since 2010. The market requires entrepreneurs to be constantly alert to threats in order to effectively manage their business and respond to current problems. Setting up a business is a simple process, but often, due to limited start-up capital, entrepreneurs are faced with relatively high business costs, such as taxes, social security, rent, employment or advertising expenses, which - especially at the beginning of the business - are higher than the income. In addition, for those starting out alone, things will not be made easier by having to personally take care of all aspects of business management. Constant monitoring of legislative developments is necessary in order to operate legally.
Today, competition appears at every step and fights meticulously for clients. The difficulty of winning them
and late payments are another obstacle to stabilization in the first months of activity. According to the Euler Hermes report, as many as 801 TP3T companies close after the first year. The main problem is high competition and low profitability. This figure suggests that not all Polish entrepreneurs have yet learned the art of running their own business, which does not exclude the fact that many of them have very high potential that they could develop in the future.
The closure of a company is often associated with low revenues or the possibility of only covering costs. However, it is in these cases that a good assessment of the company's financial situation plays a key role. Decisions should not be made under the influence of emotions. Ratio analysis is recognised as one of the most important elements when assessing a company's finances. It reflects the company's financial situation and allows for an unambiguous assessment by analysing groups of indicators of profitability, liquidity or stock turnover. The complexity of the analysis requires that time be devoted to assessing financial health and that further measures be taken based on the results and a fresh analysis.
Not all areas related to the operation of a company should be managed internally. There are times when it may be better to do without certain processes in a company or outsource them. Hence, any analysis carried out can show both the weak and strong points of the company and determine the steps to be taken.