Indonesian Classic Startup Problems and How They Overcome It

In the Indonesia Digital Creative Industry Society report entitled Mapping & Database Startup Indonesia 2018, the number of startup companies in Indonesia reached 992 companies. In details, 522 companies are domiciled in the Jabodetabek area and the rest are in other parts of Indonesia.

The rapid advancement of technology in Indonesia has triggered the emergence of various technology startups in Indonesia. The fast growth of startups was also accompanied by the collapse of a number of startups that were unable to survive. Mostly, they only lasted a few years because of the problems that plagued them, such as financial problems.

Financial problems at startups have become a classic problem that needs solving. Every company experiences different problems. Here are common financial problems that Indonesian startups often experience.

Read more: 3 easy-to-do and profitable small business ideas

The preparation of Indonesian startup financial reports is still messy

According to Ersa Tri Wahyuni, Member of the Financial Accounting Standards Board of the Indonesian Accounting Association (DSAKIAI), Indonesian technology startups are still confused about recording financial reports.

Ersa Tri Wahyuni ​​has conducted research and found that 64% of startups in Indonesia admit that they have difficulty preparing financial reports. To make it easier for them, the use of free accounting software is expected to help them.

Paper.id is a business platform with invoice, inventory and accounting features suitable for anyone, including Indonesian startups. With an economical price, Paper.id can be a solution to the difficulty of making financial reports for startups and thousands of MSMEs in Indonesia. Click this link to get more information!

Late payment

Old songs are repeated, this phrase is apt for one of the classic problems that startup companies often experience, late payments. This problem is a threat to your company in the future if not immediately above.

The solution that can be done is to make clear rules and consequences that are enforced. For example, it is important that the provision of the agreed payment period be enforced.

Paper.id invoice reminder feature helps entrepreneurs to know about unpaid invoices

Apart from that, you can also remind clients politely and regularly. To help you do this, you can use the invoice reminder feature from Paper.id. With this, there will be no more forgetting to remind, because there are invoice reports that have not been paid.

Working capital

Capital is also one of the classic problems that startups continue to face. Limited funding is a challenge that must be overcome. One way that this can be done is by finding angel investors, crowdfunding, borrowing funds, and pitching investors.

That way, you can get a large injection of funds. This must also be accompanied by proper use in order to avoid unwanted things such as spending too much and leading to bankruptcy.

Read more: How Marc Jacobs improves its productivity with AP Automation

Financial projections are irregular

In addition to financial reports, projections of the use of funds need to be made as a guide for a company, including startup companies. That way, they know how much funding is needed for short, medium and long term steps.

Financial projections are easy to make by following financial reports. The results of the financial statements will show how much income and expense you have. After that, expense will be a benchmark for how much money is spent each month.

You need to make expenses a guideline of how much money is needed for all activities in the company. That way, you know the amount of funds needed to keep your company running and growing.