If business is going well but your profits are not hitting the target your business could have serious financial leaks. These leaks involve small but constant flows of money that are being lost in little areas such as purchasing, marketing and your overheads. As the money is leaking you may feel that you can afford to ignore the problem, it’s not a flood after all – yet. However, all the money that you are spending needlessly does add up over time and will have a serious impact on your bottom line.
It’s time to take control of the situation and find solutions that will seal the leaks and secure your finances for the long term. You are putting in all the hard work you deserve to make the highest possible earnings that you can. A great business man or woman will never allow the leakage of money to be ignored.
Work on Your Accounting
You need to have a head for accounting when operating any business. The costs will be repaid through efficient accounting and money saving deductions that will save you money on your taxes. Running excellent accounts can help you produce better forecasts and discover products or services that are not working as well as those that are.
Loyalty Might Not Get You Anywhere
You might feel a sense of loyalty to stay with suppliers who helped you to get started. Similarly you may also feel like you have to stay with clients even though they are not paying you the rates that you should now be charging. Loyalty can hold you back and cost you a fortune. Look for new suppliers, get quotes and recommendations and see if you can save money by swapping to someone new.
Also contact your clients and inform them of your new rates, if they don’t stay with you at least you can begin finding clients who are definitely worth your time. This may seem like a risk but business always involves an element of risk. Without taking this step your business will never progress.
Take Control of Your Inventory and Your Supplies
Watch your stock levels carefully, check all of your deliveries to make sure you have received what you have ordered and don’t give any away. You should also keep an eye on your office supplies. Do you need to print? Are you using refillable printer inks? Are pens or other supplies getting lost regularly. Tighten up, be aware of what you are using and limit their usage. Don’t over order supplies, keep an eye on breakages and waste and get in control once and for all.
Save Money on Your Utilities
One of the most costly overheads is the utility bills but even these can be reduced. You need to establish how much energy you are using in all aspects of your business and then find ways to reduce the costs. You can do this by using an electrical energy management system. When you know your usage switch suppliers to save money and adopt energy efficient business techniques.
The author is a freelance writer who has created a successful copywriting business from scratch. He is well aware of the stress that comes with running a business and likes to use his experience to help other businesses survive in a difficult economic climate. He has written hundreds of articles on the topic many of which can be found online.