How to take care of your vehicle dealership's finances and avoid losses

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Managing your car dealership's finances isn't just about controlling cash inflows and outflows. You need to know your fixed expenses , variable expenses, the real cost of cars in stock , and other issues that, when not managed correctly, can cause serious harm to your company's financial health .

How to take care of the finances of the vehicle dealership
Less control, greater risks
Between 2008 and 2014, Sebrae analyzed the Federal Revenue rcs data belarus to identify the determining factors for the survival and mortality of Brazilian companies. Approximately 2,000 organizations, both active and inactive, were interviewed to understand the reasons that led to the closure of businesses.

Among the companies that were closed, one of the main reasons was the lack of rigorous monitoring of income and expenses. In addition to this situation, the following were cited:

Was not updated on new technologies in the sector
Did not take business management courses to improve knowledge of how to run a business
Did not invest in training the workforce and partners
In percentage terms, administrative and accounting problems are tied with other issues, such as default.

Reasons given by entrepreneurs for the company to cease operating

Taxes/costs/expenses/interest 31%
Sales/low demand, demand, customers/strong competition 29%
Financial problems/default/lack of credit lines/working capital 25%
Management/administrative and accounting problems/disability/society/logistics 25%
Another opportunity/no longer needed the company/end of the company, contract 13%
Labor/employee/preparation 12%
It is important to understand that all of these factors, when combined, worsen the lack of control over the finances of the vehicle dealership . This is because, even if you have a qualified professional, without the necessary technological tools and constant updating of knowledge, the management of everything that happens in your bank account is compromised.

But, after all, how do you start taking care of the finances of your vehicle dealership?
In four years, Brazil lost 316,680 companies, according to 2019 data provided by IBGE . But that doesn't mean you should give up on your dream of becoming an entrepreneur: with the right tools, your vehicle dealership can join the more than 20,000 companies considered high-growth or entrepreneurial that stood out in the survey.

How can you achieve this success? By starting to take care of your company from the inside out.