3 Ways that Small Businesses Lose Money and How to Avoid Them
By Space Coast Daily // May 19, 2022
Whether you’re just getting your first business off the ground or you’ve been in the game a long time, the threat of losing money is always just around the corner. The best way to ensure that you always avoid the common pitfalls that cause companies to lose money is to know what they are and how to deal with them. Here are three of the most common issues to get you started.
Unavoidable and Needless Losses
Occasionally, things like a public health crisis or a natural disaster can get in the way with no way whatsoever of avoiding it. More often, managers lose money due to entirely avoidable problems. When your company is hemorrhaging money due to no one’s fault but your own, it can be challenging to get through a day of work. That’s why you need to be informed.
Lack of Sufficient Employee Training
A high turnover isn’t always the worst thing to face; many small businesses thrive on it because jobs need to be performed that are only considered stepping stones to better things for employees gaining valuable experience. If there’s no reason to provide incentives to keep an employee around for the long term, spending those costs can be wasteful.
On the other hand, when you need to continually train new workers, you risk constantly facing an inadequate staff. The best solution is to strike a balance between these two extremes by retaining a few people who can be trained to become great managers for the long term.
Unpaid Debts to Your Company
Any time you’ve performed services or delivered goods to a customer, you deserve to be paid for the work or services you’ve provided. If you’ve recently looked into the status of your accounts receivable department only to find unpaid invoices, then you should contact a professional collection services company immediately.
When you get help from a professional team to help you resolve unpaid debts owed to your business, you’ll also gain:
■ Fast return of funds to your company
■ Maintain customer and client relationships
■ Exceptional skip tracing services
■ Potential to outsource your accounts receivable department
Don’t face delinquent accounts alone; prevent lost income by working with a collection agency.
Poor Customer Service
If your customers are not treated well, they aren’t going to return. Given that many kinds of businesses thrive on developing relationships with regular patrons, customer service can be what makes or breaks a new business.
If you’re making a strong effort to provide better customer service but are not able to meet your goals, you can hire an expert to streamline the process. You’ll gain an expertly curated customer service plan that will give you an advantage over your competition and ensure that your most valued customers keep coming back.
If your business is struggling, the chances are that you’re losing money in an area that can easily be fixed. Your top priority should be to find the problem and resolve it. Get in touch with a collection agency to get help when you’re losing money due to unpaid accounts.