No business owner would want to lose money. Sometimes, your business will feel like it is doing well. You have loyal customers and can retain most of them. You have a steady flow of income. But still, you fail to generate a positive cash flow. What could be the reasons and what can you do about it?
Some business owners fail to maximize their profits due to poor financial habits. Others still have the same bank account for both their personal and business finances. Other possible reasons why you could be losing money can be one of the following.
Lack of Security
You may not know it yet, but theft could already be one reason why you fail to maintain a positive income. It does not even have to be a robbery for you to lose money. There are times when sneaky employees could be blamed for your missing income.
Did you know cash, checks and online transfers are not the only ways internal threats can occur? There are times when employees can steal supplies, goods, data, and even use asset misappropriation to steal from your company. If you are not careful, you can end up losing a considerable amount of profit thanks to your sly employees.
Thankfully, there are many ways you can stop employee theft. Start by improving the security of your physical location. You can install security cameras and place them strategically in your office.
You can also consider contracting security officers to guard your business. Consider your business needs and you can determine whether you require armed officers or not. They can conduct security checks for all employees and secure your physical location 24/7.
It pays to place strict protocols on who can access sensitive information and certain areas of your business. Only give access to select employees to avoid all staff from getting a hold of confidential business information. Also, screen employees, avoid cross-training, do regular inventories, and do random employee checks.
Some business owners prefer doing their business accounting themselves. But since they also take care of other tasks, they tend to log transactions late. Accounting errors, failure to conduct internal audits, and even spending more than what you can afford can cause devastating effects on your business finances.
As much as possible, let the pro do your accounting for you. You can choose to hire an in-house accountant to outsource accounting services instead. This way, you can have someone knowledgeable and experienced to maintain your records.
Poor Online Presence
Since most consumers these days are already online, chances are, you already started building your online presence. But simply owning a business website, having profiles on different social media platforms, and claiming your business online is not enough to establish a strong online presence. Sometimes, you are better off hiring SEO services.
Make sure you also regularly engage with your clients, ask for their feedback, and share useful posts. Boost your social media campaigns and optimize your business website for local search engine optimization.
For your existing clients, be sure to ask them to recommend your business to their friends. Conduct promos and offer special deals and discounts. Don’t forget to encourage them to leave reviews on your website.
By boosting your online presence, you can boost your revenue. You can entice new clients and encourage old customers to continue patronizing your brand. Be consistent in boosting your online presence and you can avoid losing revenue from lost opportunities online.
Poor online presence, bad accounting practices, and employee theft can cost your business a considerable amount of revenue. If you want your company to maximize revenue, find out where you are losing cash. Improve your processes and boost your security to optimize business success.