A business can only stay in business if it has one thing, profits! After paying all the bills, is your company really making money? Profits are the cushion that protect entrepreneurs from unexpected expenses and grow the business. Here are three common issues that could be killing your profitability, take a look!
1. You don’t charge what you’re worth.
You may be surprised how common this is. New business owners often feel like they have to adopt low rates in order to gain their share of the market and stand out in the sea of competition. This is simply not true. There is a buyer for everything and more often clients are looking for quality products and attentive service. They want the best value for their buck all the way around.
2. High costs for overhead.
Everyone knows, to make money you have to spend money, but there is a limit. As AudienceBloom CEO Jayson DeMurs wrote in Entrepreneur magazine, cheaper options likely exist for ongoing costs. If your overhead is too high, you might want to look at what the business actually needs to thrive. Same for ongoing costs. Have you found the best deal for costs like utility bills and general service options? If you’re not sure, take a moment to pull out your last few months of bills. Check with local resources to see if you can lower expenses for things like garbage services, water, or even your Internet.
Every business should have an emergency fund. The last thing a business owner wants is to have some unexpected emergency come up and suck up all the company’s available funds. However, if you are just putting Band-Aid's on larger issues, this is bound to happen. It’s time to take a proactive approach. Call us for a FREE 27 Point Network Assessment and see what weaknesses may be lingering in the background.