Despite all efforts to avoid it, even the most profitable company is likely losing money. It can be a tough journey, making sure every aspect of production isn’t losing a penny but the fact is that’s not always the reality. You can keep up your guard and always have an eye out for waste, but something can slip by. Here are five common areas where even successful businesses are losing capital.
Not ensuring staff is adequately trained to deal with customer issue.
Nothing – absolutely nothing – is more frustrating for clients and customers than not being able to get the information they need in a timely manner. Many businesses lose conversions at the customer service level when customers are unable to get their needs met. Poor customer service is one of the easiest ways to lose business. When employees are trained to take care of issues professionally and in a timely manner it will help insure that you keep the customer’s business.
Employee spending is not being monitored.
Expensive meals, unnecessary equipment and supplies, alongside such behavior as using corporate accounts for personal expenses are siphoning from the business coffers. This is a drain no business can afford or should tolerate. Unfortunately, even high level executives can be involved. There needs to be responsible and forceful financial management. The easiest way employees could be draining your account is by poorly managing their time or not working while on the job. You can combat these issues with time sheets as well as incentives to work more intensely.
Many businesses don’t know they hurt themselves with cheap marketing.
The old adage that it costs money to make money is quite true. Looking to cut corners, businesses have utilized less than stellar marketing materials that do not promote them effectively. This has a two-fold effect on the bottom line: (i) it makes the business look bad and (ii) money is wasted on the campaign. Marketing has to make the business shine and only high quality materials will do that. Even hiring a top notch marketing company can waste your money. Be sure to shop around for the best marketing strategy and price for your business. This will help the company in being aware of what is out there as well as provide the opportunity for businesses to compete for your business.
Keeping technology up to date only helps the business stay competitive.
It’s always going to be an expenditure because tech evolves so rapidly. But the business is stalled when it’s not utilizing modern production methods. When you can’t perform a function as quickly as your competitor you risk losing business to them. Always keep advancement in technology in the budget and have the staff that knows when to implement solutions in the most cost effective manners. AS long as your implement the new technology safely and wisely technology can be a huge area of money saving.
In order to help their bottom line, places like ADP Tax Credit Services have been looking in the crevices of businesses for ways a business can save money. It may be a little bit of an upstart cost, but hiring professionals to help find ways to save you money can often be worth it.