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Indonesias micro, small, and medium-sized enterprises are facing many barriers; one of them is financial management. Financial management has a fundamental role in the entire management scheme in a company. Poor financial management is a crucial and frequent cause of failures in MSMEs. Lack of financial management impact financial performance. XYZ is one of small enterprise in Indonesia that includes in the fashion industry faced poor financial performance. Poor financial performance shows on their financial statements. The income statement in 2018 shows a net loss, whereas the revenue is the highest compared to 2017 and 2019. The objectives in this research are to explore what factors that cause the net loss in 2018 and to improve the enterprises financial performance — internal and external analysis conducted to achieve the objectives. The internal analysis uses the profitability ratios and fishbone analysis. The root cause of the problem conducted through fishbone analysis is due to financial activities. The profitability ratios analysis conducted using a tool called common-size income statement. According to the common-size income statement, the marketing expenses shows a disproportional ratio compared to its revenue. On the other hand, to maintain the company in a profitable position within the industry, the external analysis using Porters Five Forces and Porters Generic Strategies has been conducted. Following the result of Porters Five Forces analysis, fashion industry in Indonesia is in a tight competition that requires competitive advantage to compete. Overall, differentiation focus on Porters Generic Strategies is the most suitable strategy to keep the company in a favourable position within the market and to improve the company performance, especially in financial. Thus, this research is intended for small fashion companies that have problems in their financial performance.