Analysis of the Reasons Why Coating Companies are "Half-Alive, Half-Dead"
In recent years, influenced by the crisis of economic globalization, everyone in the paint industry is saying that business is hard to do. Tight funds, long remittance cycles, and even broken capital chains have caused many small and medium-sized enterprises to lose confidence in the paint market. Many small and medium-sized paint company owners are busy chasing debts, and the financial issues are significant, leading some small and medium-sized paint companies to implement strict "no debt" measures, "rather not do business than take on debt orders," which has put some small and medium-sized enterprises in a "half-dead" predicament.
According to reports, in just 2016, nearly one-third of small and medium-sized enterprises in the paint industry were in a "half-dead" state. Of course, this is not only due to the large market environment but also many other reasons.
Analysis of the reasons for paint companies being "half-dead".
1. The overall market environment is not good. The overall environment is mainly reflected in market weakness and a surge in production costs. These sudden situations have caught many people in the paint industry off guard, and some small and medium-sized paint companies have to shrink their operations to survive.
2. Poor management. Small and medium-sized enterprises often lack management experience and do not have a reasonable and efficient system. For example, improper personnel management can cause unnecessary internal friction; financial systems may have loopholes, giving employees opportunities for personal gain; neglecting safety production can lead to serious accidents.
3. Broken capital chains. Many small and medium-sized business owners underestimate their financial needs, have missing financial budgets, and find that market returns are not as good as initially expected, leading to a strained capital chain and ultimately causing the business to collapse.
4. Lack of learning. Small and medium-sized paint company owners often play multiple roles such as "salesperson, manager, firefighter," which leads to a slow pace of self-updating, making it difficult to adapt to changes in the external environment, ultimately resulting in being surpassed and eliminated by competitors.
5. Lack of product competitiveness. Products have not undergone sufficient market research, have a short product lifecycle, or the produced products do not meet market demand. Additionally, competition among similar products is fierce, and lacking unique selling points leads to products being eliminated shortly after their launch.
6. Lack of awareness of interests. On one hand, it refers to customer interests. When company interests conflict with customer interests, whose interests do you consider first? If you do not consider customer interests, you will lose the most valuable business promotion method—customer reputation. On the other hand, it refers to employee interests. Some small and medium-sized enterprises treat employees as tools for making money without considering their growth, even arbitrarily cutting employee benefits. Therefore, do not complain about employees being negative; there are reasons for this. In any case, the ultimate loss is borne by the enterprise!
National favorable policies support the development of small and medium-sized paint enterprises.
In recent years, to assist the development of small and medium-sized enterprises, the government has introduced numerous favorable policies.
1. Implementation of policies. Across the country, in order to promote the development of small and medium-sized enterprises, local governments actively respond to the State Council's call, publicizing major policies and implementing various beneficial policies for enterprises.
2. Increased financial support. Encourage the development of small and medium-sized financial institutions, strengthen the construction of a multi-level capital market system, continue to promote the construction of a guarantee system for small and medium-sized enterprises, and promote the healthy development of internet finance.
3. Strengthening service system construction. Accelerate the construction of public service platform networks for small and medium-sized enterprises, and strengthen the dynamic management of national public service demonstration platforms for small and medium-sized enterprises. Carry out special actions to support small and micro enterprises and management consulting activities aimed at small and medium-sized enterprises to help improve the quality of management talents.
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