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Have your profits taken a nosedive?
If business was once booming but now you’re struggling for sales and your bank accounts aren’t looking too healthy, it’s time to make a change.
There are a number of reasons that things might not be running as well as they should, here are some examples and what you can do about them.
Get ready to ditch your money worries.
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Poor budgeting causes money worries
Running a business is expensive, and the old adage is true:
You need to spend money to make money.
This can make things difficult when it comes to balancing the books, as you need to ensure that you’re covering your costs and investing in the right places, while still making enough money so that you’re turning a profit.
Without careful budgeting, it’s easy to overspend and all of your finances can end up out of whack. When it comes to business, turning a profit is the name of the game, and so if you’re spending more than you’re making then something needs to change.
Invest in good budgeting and accounting software so that you can plan your money efficiently, and see every spend at a glance. Find ways to cut costs, without jeopardizing the quality of your business or product.
For example, you could get quotes on delivery companies, suppliers and manufacturers to ensure you’re paying the best price.
Bad products or services
One reason people might not be buying from you is because your products or services might not be up to scratch.
Maybe you’ve used a new manufacturer or supplier and the quality has gone downhill. Perhaps a team member has left, leaving everyone else rushed and unable to complete their work to the best standard.
Your business probably didn’t start off bad, but changes and failings along the way could be affecting your end product. Read your reviews, send out a customer survey and search your name on social media to see what people are saying about you.
You’ll probably be able to find what it is people aren’t liking, and then from there you can make a change.
Theft from your business
Theft is incredibly costly to business.
As well as assets such as machinery, computers, phones and cash, thieves can steal data and other information which can often be even worse.
If for example customer data is stolen, this could be used for fraud purposes. If it’s discovered that this kind of information is taken from your business then by law you have to inform your customers.
This can result in people losing trust in you, and your reputation becoming ruined. Always use the most up to date software which will be more secure, and utilize things like cloud based storage for your data.
This is encrypted and stored on servers meaning even if your computers are stolen, no information can be taken from them.
Consider things like office, shop and construction site video surveillance depending on the kind of business you run. Remember, not all thefts will come from outside of your business- in many instances, companies are targeted by their own employees.
Set up an anonymous reporting system so others can inform you if something doesn’t seem right. Theft from your business will cost you money, but it could also cost you your reputation which is far worse. If people boycott your company then profits will dwindle and you’ll eventually have no choice but to close.
Marketing is everything in business.
You might have a fantastic product and company, but without the right marketing then you’re just not going to reach the right people. It’s naive to assume ‘if you build it they will come’, with so much competition out there, customers won’t simply stumble across your business.
You need to work to get your site listed high in search engine rankings which will boost organic traffic. You need to build quality backlinks, and get recommendations from influencers.
You need to be creating interesting marketing materials that are share-friendly so that they have a wide reach. Run competitions, create viral ads, think a little outside of the box. While you won’t want to copy your competitors, check out what they’re doing as it might give you some inspiration.
The odd boring post on social media isn’t going to cut it. The type of marketing you do also makes a difference, for example if you’re a local business (such as a florist, bakery or launderette) then it doesn’t make sense to promote all across the internet.
You need more focused methods that will reach the customers in your area. Flyers and billboards are one option, you could also host an event at your store.
Give away free samples, invite some entertainers and food vendors down, and get people interested. While they’re there, it’s a chance to chat about your products and business and inform them about what you do.
Business becoming obsolete
One worry of most modern businesses is becoming obsolete. We live in a world that’s so fast pace, technology advances dramatically from one year to the next and with it, customer’s demands and needs can change.
Your business might be doing well today, but a development in technology, new rules from Google or a new product or device on the market could mean people no longer need or want what you’re selling.
If profits have begun to dwindle, then this could already be happening. Be sure to stay on top of the news and your competitors. Know what’s going on so that you’re able to adapt and make changes that will keep you relevant.
Conclusion: What are your money worries?
It can be concerning when business starts to go wrong and profits dip.
But find the cause of the problem and do what you can to resolve it and you’ll quickly get back on your feet.
Have you experienced any of these issues in your company?