If you were to tell me that you don’t care about your company’s profits, then I would call you a liar. Of course you care about your company profits! On that note, make sure you’re not making these mistakes. They’ll be draining your profit potential in no time!
Hiring too many people
It can be tempting to hiring a new person to deal with every little task that arises. A lot of companies do actually struggle with having created too many departments and swollen them with employees. It may seem like a good idea to hire as many people as possible for a while. After all, you can hardly be expected to do every job by yourself. But it’s possible to go overboard. Let’s say, for example, that you’ve got employees in finance that you actually only really need every now and again. You should consider outsourcing those tasks or setting up part-time jobs instead of full-time ones. Read more about recruitment costs at chron.com.
Ignoring changes in sales
This may seem like a mistake that’s too crazy for people to actually make. But people really do! They notice a decline in sales and, instead of taking action, they chalk it up to average market behavior. They assume that things will pick back up again. This is a mistake! When you see a decline in sales, you need to do some thorough research. There’s always a reason. Find it and tackle it. Read more at crmsearch.com.
Letting customers get away with nonpayment
I get it. When customers have used finance or delayed-payment options, it can be awkward getting them to pay up. After all, the chances are high that they’re not exactly financially-healthy if they had to take these options. Look, I’m not telling you that you have to be like some mafia and go break some legs when payment isn’t made on time. But you do need to take action when this sort of thing happens. Read more about cash collection at tsico.com.
Pretending that marketing won’t help
Perhaps you thought that marketing was what was going to cut into your profits. This is an understandable assumption. After all, marketing is hardly the cheapest item on a business’s to-do list. But this doesn’t mean you should skip it! If your marketing game isn’t very strong, then you’re not getting the world out there effectively. And if that’s not happening, then you’re missing out on a lot of revenue potential. The key to success here is to focus on getting a good return on investment. Read more about ROI and marketing at forbes.com.
A bad reputation
Does your company has a reputation for delivery poor products or making unethical business decisions? Be honest with yourself. If the answer is yes, then that’s something that won’t be helping your profits at all. A good corporate reputation is very important for business! Never underestimate its power. The public expect more from companies these days.
Inaccessible business practices
You may be wondering exactly what I mean by “inaccessible business practices”. Luckily for you, we’ve already written an entire article based on business accessibility!