2024-12-04 15:19:00
The majority of businesses opened in Brazil cannot survive for more than three years: 51.15% of them close their doors in this period of time. This is what a survey carried out by BigDataCorp (a company specialized in capturing, structuring, storing and distributing data) and reported by CNN Brasil.
Among the various factors that can lead a business to close is the lack of planning and correct analysis of the numbers, as Wallisson Deziderio explains. An accountant by training, he is CEO of Billion Contabilidade, a company that assists business owners in matters such as accounting, tax and personnel departments.
“The fact that many companies are at risk of closing their activities due to a lack of analysis of accounting and financial statements is a point that is often neglected, which can lead to serious consequences for the sustainability and survival of the business”, analyzes Deziderio.
He highlights the need to analyze the balance sheet, the income statement for the year (DRE, which show the performance of a business in a specific period) and other reports to identify possible financial, operational and management risks. Based on this, the company is able to make decisions considering accurate information and organize itself better.
Deziderio also mentions other indicators that should not be forgotten by anyone who has their own business. They are: current liquidity (measures the company’s ability to pay its short-term obligations), dry liquidity (similar to current liquidity, but excludes inventories) and debt ratio (measures the company’s degree of dependence on external financing to finance its operations)
“Without these indicators, managers are unable to make well-informed financial decisions, which can result in insolvency, cash flow difficulties and increased dependence on debt. Ultimately, the absence of data can significantly contribute to the closure of the business due to poor financial management”, warns Deziderio.
The term “insolvency” that the expert referred to is used to describe when the business can no longer meet its financial obligations. This is the case, for example, of a company that incurs debts so large that paying them becomes unfeasible.
“The combination of lack of financial planning, inadequate management, lack of adaptation to the market, undercapitalization, problems with cash flow, intense competition and lack of management qualifications are some of the most frequent causes of failure”, assesses the CEO of Billion Contabilidade .
For Deziderio, it is essential that entrepreneurs seek knowledge, carry out solid planning, regularly analyze financial indicators and be prepared to deal with market challenges. “This minimizes the risks of bankruptcy and increases the chances of business continuity”, he summarizes.
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What specific steps can entrepreneurs in Brazil take to increase their likelihood of success?
## Interviewer:
**(Turning to the camera) Welcome back to the show, where today we’re tackling a sobering statistic: over half of Brazilian businesses fail within three years. Joining us to shed light on this issue is Wallisson Deziderio, CEO of Billion Contabilidade, a company specializing in helping businesses with accounting, taxes, and personnel. Welcome, Wallisson!**
**Wallisson:**
**( Smiling) Thanks for having me. It’s a crucial topic, and I’m happy to share some insights.**
**Interviewer:**
** The statistic paints a rather bleak picture. What factors do you see as the main culprits behind this high failure rate?**
**Wallisson:**
**(Nodding seriously) You’re right, it is concerning. In my experience, one of the biggest issues is a lack of proper financial planning and analysis. Many entrepreneurs don’t fully understand their numbers, which are vital for making informed decisions. They might not be analyzing balance sheets, income statements, or other crucial financial documents that can reveal potential risks.
**Interviewer:
So, it’s not just about making a profit, but understanding the financial health of the business?**
**Wallisson:**
**Absolutely. Think of it like a doctor checking a patient’s vitals. These financial reports are the vitals of a business, telling you whether it’s thriving or heading towards trouble. Ignoring them is like ignoring warning signs.**
**Interviewer:
What concrete steps can entrepreneurs take to improve their chances of success?**
**Wallisson:**
**First and foremost, seek professional help. Accountants and financial advisors can guide you through the process of understanding your financial reports and developing a solid business plan. Secondly,
focus on key indicators like current liquidity, which shows your ability to meet short-term obligations. Mastering these tools can be a lifeline for young businesses.
**Interviewer:
Excellent advice, Wallisson. Thank you so much for sharing your expertise and helping our viewers navigate these complex waters. We certainly hope to see
more Brazilian businesses flourish in the years to come. **
**(Turns back to the camera)
And that’s all the time we have for today. Remember, informed decisions build strong businesses. We’ll be back with more insightful discussions soon!
**
