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4 Business Issues That Could Leave You Heartbroken And Penniless
A business can stay in business only if it has one thing: profit. After paying all the costs of doing business and paying all the people working in the business, profit is whatever is left-over. Profit is the cushion that protects entrepreneurs from unexpected expenses and the spark that helps a business truly grow.
What’s stopping your business from thriving?
There are four common issues that kill a business’ profitability. Undercutting yourself, overwhelming yourself, not being prepared for emergencies, and running a business that goes unnoticed can cut into profitability. Take a look at these easy steps to save yourself a little heartbreak.
1. Charging what you're worth.
It's not uncommon for new business owners to undercut themselves. They often feel like they have to lower their rates in order to standout and capture a portion of the market. This is a mistake because your costs will outpace any profit you might make. If you're in a service-based business, another downside could be that people may equate higher prices with better value and lower prices with less than stellar service and low quality. You have the potential of shooting yourself in the foot. Be careful to evaluate your market and closest competition to ensure you are charging enough to be competitive and make a good profit.
2. High costs and overhead.
Everyone has heard that to make money, you have to spend money, but there is a limit. As AudienceBloom CEO Jayson DeMurs wrote in Entrepreneur magazine, cheaper options likely exist for ongoing costs. If your overhead is too high, you might want to look at what the business does need to thrive. Have you found the best deal for costs like utility bills, vendors, and maintenance expenses? If not, it’s time to do some comparison shopping. Of course, there will be a few vendors you’re just stuck with like the disposal company, so begin by making a short list of vendors you can change like your IT guys, Internet provider, and telephone company. You may be spending too much and you might be able to do something about it.
IT companies, for example, can come with a long list of services. Are you using all the services you’re paying for? Do you know what your company truly needs? Can you sneak away for that romantic getaway and relax knowing your company will keep running regardless of your whereabouts?
If you answered “No” to any of these, give us a call. We will review your entire network and present you with a FREE Network Assessment that will show you what you currently have and what you need. Then you can compare this assessment to your current vendor and make informed decisions about your IT needs.
IT companies, for example, can come with a long list of services. Are you using all the services you’re paying for? Do you know what your company truly needs? Can you sneak away for that romantic getaway and relax knowing your company will keep running regardless of your whereabouts?
If you answered “No” to any of these, give us a call. We will review your entire network and present you with a FREE Network Assessment that will show you what you currently have and what you need. Then you can compare this assessment to your current vendor and make informed decisions about your IT needs.
3. Planning For Emergencies.
Every business should have an emergency fund and back-up plans. The last thing a business owner wants is some unexpected emergency that sucks up all of the company's available funds, potentially leaving them in a crunch when it comes time to pay the bills. When we say emergencies, we mean everything from fires and floods to break-in’s and cyber attacks. Would your business survive even just one major loss?
Many companies don’t bounce back from a major hit without a proper plan in place. For example, what if your office was broken into and your server was stolen last night. Could your company continue work today? How would your organization get up and running again? Do you have a plan and how long would it take to get the ball rolling? If these questions made your heart skip a beat, give us a call. Our FREE Network Assessment will reveal any vulnerabilities you may have when it comes to theft and recovery. A secure off-site backup solution and a simple disaster recovery plan for your business can save you a major heartbreak at the end of the day.
Many companies don’t bounce back from a major hit without a proper plan in place. For example, what if your office was broken into and your server was stolen last night. Could your company continue work today? How would your organization get up and running again? Do you have a plan and how long would it take to get the ball rolling? If these questions made your heart skip a beat, give us a call. Our FREE Network Assessment will reveal any vulnerabilities you may have when it comes to theft and recovery. A secure off-site backup solution and a simple disaster recovery plan for your business can save you a major heartbreak at the end of the day.
4. No one knows about your company, or your product.
It's important to understand who your target client is, where they are, and how they will find you. This enables you to better reach those clients you truly want a long-term relationship with and promote your products or services appropriately. Don’t sit in the shadows of your competition. Don’t be shy, look for ways to make your company offerings shine.
Just a few things to kick start your business.
These are, in no way, the only issues that your business could face as you strive to make a consistent profit, but if you work through these issues it could make a big difference in your company’s profitability.
Need help paring down your IT bill or preparing for an emergency?
Give us a call. Even if you don’t go with
53 North Saginaw Street,
Pontiac, MI, 48342
248-565-3832
Pontiac, MI, 48342
248-565-3832
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