Congratulations! your dream of building your own business has finally come true.
Now that your business is up and running, you try to handle everything efficiently and by the book. but surprisingly you can’t seem to reach the profit you planned for long-time ago. You start doubting yourself or even blame others who are around you, you may even start to blame your family.. but before you do, please read through the 7 commonly reasons why your business isn’t making the money you’re wishing for.
If you set prices too low, you’ll end up spending more in production than you can feasibly make back. Consider your margins carefully, and don’t be afraid to charge for quality.
Too much overhead
You may be overestimating your needs in some key areas. For example, do you really need that 3,000-square-foot office when you have only two employees you’re running the business with?
Too many ongoing costs
because expenses come in so many forms, it’s hard to pin down any one area where you’re bleeding money. Think about all of your expenses and you’ll find that cheaper options likely exist, along with opportunities to make cuts. So, don’t overlook them.
Unseen or hidden costs
If you aren’t adequately preparing for taxes or insurance costs, meanwhile, those could end up burning you.
It’s possible that your expenses and prices are just fine, but you’re facing competition too tough to keep up with. Find a way to differentiate yourself from the competition, and one-up them in at least one key area, whether that be price, quality or experience.
A lack of market awareness
If your product is at an ideal price for both you and your customers, you still might not generate a profit if no one knows it exists. Your greatest tools to overcome this obstacle are marketing; it cost a bit up-front, but it well worth the investment if you plan them properly.
You’re executing too inconsistently for your business to reap the rewards. For example, your expenses may swing enormously from month to month. Iron out these inconsistencies as soon as you can track them down. It may be tough to pinpoint exactly where your strategy is deviating, but it’s an important step if you want your profit to remain reliable.