The terms company gain and loss are two very important terms in business. Don't let a businessman misunderstand this term.
The reason is that these two terms tend to be similar to the terms profit and loss, even though they are different. So, what is the difference? The following is an explanation that Asterokid has summarized from various sources.
Understanding Company Gain and Loss in Business
|Company Gain and Loss
Companies in the trade and services sector will of course still encounter gains and losses. In general, gain has a similar meaning to profit, but is still not the same. If profit is the profit obtained from the difference between selling and buying prices in general, then gain is not the case.
Gain is profit, in terms of gain is defined as an increase that occurs in capital (net assets) which does not come from general income but from transactions outside business operations. An example is the profit from the sale of securities obtained by a company.
On the other hand, there is also loss which is a decrease in net capital assets due to transactions outside business operations. Loss is a loss obtained by the company. For example, there is a loss resulting from the sale of securities.
Factors that Influence Gain and Loss in Companies
As a businessman, of course, you have to know the factors that can create profits for your company. On the other hand, it is also best to anticipate things that can cause losses. To better understand what factors influence a company's gain and loss, it would be good to see the following.
1. Product Selling Price (Goods or Services)
The selling price set by the company will certainly affect the profits or even losses of a company. The right selling price will create balance for the company, and may even provide better profits. Vice versa.
On the other hand, if the company has opened sales of securities, the selling price will greatly influence the purchase of securities. A price that is too high will certainly make buyers reluctant to buy it. This certainly happens when purchasing company products and company securities.
2. Volume of Goods or Services Offered
The greater the volume of goods produced and entering the market, the more the company will become known to the public. If this is the case, of course, the company's products will be popular with the public, this also really depends on the marketing carried out. The more intense it is, the more optimal the output will be.
Not only related to product consumers. If the product is already popular on the market, this will also make it easier for the company to sell or issue securities. The more sales and balance, the higher the gain obtained.
The Best Solution to Overcome Company Gain and Loss
No company or businessman wants to experience losses. Every businessman certainly wants to continue making profits, because it is from these profits that a businessman earns income. However, if it happens, a businessman must be prepared for this situation, get up and face it calmly.
1. Carry out financial evaluations regularly and periodically
Financial evaluation is very important in a company. The absence of regular financial evaluations will certainly create an imbalance within the company. Moreover, finance is a very important part of the running of a company. In terms of evaluation, it can be carried out lightly or through an audit process.
2. Improve the business system to be more effective
An inappropriate business system will certainly affect the running of the company. The company may experience losses due to poor management. Business management can be related to many things, from employees to the smallest lines of the company.
3. Remain calm and optimistic in running your business
An entrepreneur must have a calm and optimistic attitude. These two traits will enable him to manage the company well. In situations of gain or loss, entrepreneurs must continue to run in line with the company's vision and mission.
These are the things you need to understand when running a company. The solution so that the business you run continues to make a profit is to run it according to your vision and mission. Remain optimistic in facing company gains and losses.