As a business owner, there’s nothing worse than looking at your accounts and seeing that you have gradually been losing money. Of course, every business has ebbs and flows of cash over the course of its career – it’s a natural part of corporate life. You may straighten out all your debts and get in the clear just ahead of a big project which thus brings you plenty of profit. Or, you may experience a month or so of hardship where you have outstanding bills to pay and maybe that contract you sorted didn’t go as well as you’d hoped. But running at a loss consistently for many years or months can easily put your company into disarray and can pose a serious threat to your finances. There are a lot of different reasons as to why your business may be running at a loss, and some of them are easier to solve than others. Here are some things you might be able to identify within your company and how you can get yourself and your business back in the black.
A high staff turnover
Your business cannot run without a dedicated team of employees behind it. Even if you are the driving force behind what it is your company does, you will need other people on your side to help make your dreams a reality. But constant hiring, firing, and training can easily wreak havoc upon your businesses finances. Why? Well, all three of these processes cost time, and in business, time costs money. Make a point of taking a little longer to fully vet the right candidate, so you know you have the right person for the job – it might seem like a laborious process at first, but it will save you a lot of money in the long run. Plus, make your workplace somewhere employees want to be. Prioritizing employee wellbeing is something that can keep your staff on your side, and thus minimize the level of staff turnover.
Not being in control of your finances
If you’re naturally bad with money, you may want to think about changing that before running your own business! You will need to keep a detailed log of where every penny of your business goes – a good boss has everything accounted for. If you lose track of everything, significant losses can easily appear, leading to you eventually needing the aid of someone such as Hudson Weir Insolvency Practitioners. If bankruptcy can be avoided simply by being a little more careful with your cash, take the time to organize your company finances properly.
They say that you miss 100% of the chances you don’t take, and not getting back to potential clients is a good example of this. Sure, you may have an inquiry sent to you that you don’t think will necessarily lead to anything – but if you don’t chase it up, how will you know? Set time constraints on you and your staff to get back to any customer question within 24 hours – this way, you can cinch a client before they get bored and go looking elsewhere.