| 4 Reasons Why You’re Not Making A Profit

Posted in Finance at 1:00 PM by Loftis Consulting

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Making a profit isn’t just something that happens overnight, it can take a lot of time and effort to get back what you’ve put out. Here are some reasons why you may not be making a profit.

 

Wrong Business Venture

Your business idea may sound or look great, but that doesn’t necessarily mean it’s right for you. We all have our different areas of expertise that we strive in more than others, so it’s important to make sure you’re doing something that uses the skills you have; otherwise you’ll find yourself in a tricky position and may not be able to continue.

Sit down and write out all your ideas, and why you like them. Then take into account your experience in that department, the financial costs, and whether you have the right resources to run the business successfully.

 

You Won’t Sacrifice Your Lifestyle

You can’t expect to build yourself a profitable business that you are able to live off comfortably, all while going out on the weekends, watching all your favorite tv shows in the evenings and working the same 9 to 5 hours as your friends and family – that’s just not going to happen. You are going to have to create a new weekly schedule around your business, as a pose to your wants. This doesn’t mean you can never go out with your friends again – but you need to prioritize in a way that will make you money.

 

Not Managing Your Accounts Properly

Dealing with numbers is the most obvious thing when it comes to making a profit, and it all begins within your account. If you’re not able to manage correctly and understand what’s going in, and what needs to come out, then you can expect a difficult ride. For example, when you send out an invoice to your customers, and they have paid, that doesn’t necessarily mean that you receive the money straight after – sometimes you can wait up to 90 days for the payment to be cleared. But with debt factoring you can get the payment a lot sooner; covering the gap of waiting.

Little things like this will really make a difference so should be taken into consideration, and if you’re not any good with money, hire in a bookkeeper so you know you’re in good hands.

 

Bad Customer Service

If you ‘can’t be bothered’ to put in that extra time and effort to give your clients the best customer service possible, then there’s really no point in even owning a business, as this is the key to success! If you don’t have happy customers, how do you ever expect to make any money? It starts with one – if you go out of your way to treat someone with the utmost respect and give them the attention they desire as a consumer – that one person will tell their friends and family, and one of the family members may tell their friends, and so on. So think of the bigger picture at all times. It’s never just one customer; it’s a whole bunch of potentials po

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