7 Reasons Why Your Business is Not Making Money

7 Reasons Why Your Business is Not Making Money

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Your business is struggling and it continues to struggle with not enough money coming in each week or month to pay your bills. Stay on that path long enough and you’ll soon find your business will have to shut down. Read on for several reasons why your business is floundering and what you can do about it.

1. Your marketing is misplaced or insufficient. Few businesses can succeed apart from marketing. Quite frankly you need to get the word out. And that word must tell people about what you do and what you can do for them. Set aside a certain amount of time each day or within your week to promote your business.

2. You aren’t investing in your business. Few businesses can succeed apart from capital. In fact, money is the lifeblood of any business. If you own your business, then you need to own its outcome. That means investing in your business to help it succeed. By holding your personal money out from that investment, your business may not survive.

3. You don’t value your worth. How much are you worth? Do you know? You may be selling your services or products for less than what your clients or customers are willing to pay for it. In that case you are undervaluing your worth and losing money. Reassess your pricing to compete effectively and profitably.

4. You don’t work smartly. Productivity is measured by results. Those results should be earning you money. Unfortunately, some people do not utilize their time wisely and, thus, are not making what they should earn. You need to be diligent in the way that you work and how you use your time. Cut out waste and make good use of your time.

5. Your negotiating skills need improvement. Here’s a big problem for people that run businesses that lose money: they aren’t skilled negotiators and often underestimate their costs. Once you lock in your costs try renegotiating later on — you’ll find that your clients will not be willing to budge. Worse, they may begin to mistrust you. Get a handle on those costs before you meet with a potential client and make a case for why you should be paid what is due you.

6. Your employees are overspending. Small businesses with employees may lose control of spending quickly if accounting oversight is lax. You may allow for employee meals on business trips, but your budget may be unclearly defined. Other expenses that are not being given enough scrutiny can include computer equipment, personal devices, and miscellaneous expenses. Even outright fraud including borrowing money from a corporate account may be missed.

7. Your credit is a problem. You have credit but it isn’t being managed properly. For instance, you’re making monthly payments on your credit cards, when balances should be paid in full. Worse, you have allowed employees to access your company’s cards with lax oversight. Perhaps the most egregious problem is not keeping track of your business credit reports and business credit score.

Time to Wake Up

Any one problem can weigh down your business. Two or more problems can do it in. Make an effort to identify your weaknesses and take the step necessary to succeed. You may need outside help to get it done, but do it or risk losing your business.

See AlsoBuild Your Business Credit Step by Step

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