Young Upstarts

All about entrepreneurship, intrapreneurship, ideas, innovation, and small business.

6 Monumental Mistakes That Are Eating Your Profit Margins

flying moneyEverybody knows that running a business isn’t easy. It is the kind of challenge that you should only take on if you’re prepared to work hard and remain tough in the face of daunting obstacles. On the other hand, owning a business shouldn’t have to mean a constant fight for a reasonable turnover. If your company has been in operation for several years and you’re still finding it hard to make money, there could be a problem.

There are a great many pitfalls that smaller businesses and startups often fall prey to; things like neglecting the value of green design or relying on inefficient invoicing systems. They can trap revenue and make it hard to turn a profit even if sales volumes are high. This is why the key to running a successful business is vigilance. You’ve got to know what is happening in every corner, from brand marketing to payments and stock control.

This guide to some of the most common business faux pas will help you figure out how to unleash your full potential and start making money.

1. A Refusal to Go Green.

Lots of businesses are still very reluctant to invest in green technologies and eco-friendly design because they only look at the immediate expense and not the potential profit. Things like skylights, LED lights, green A/C units, and cavity insulation are proven to pay for themselves and start saving cash within just a few short years.

2. Snootiness About Outsourcing.

The reality is that all business owners are stronger in some areas than they are in others. There will be times when you are not the best person for the job and, while this can be tough to acknowledge, it’s an important part of getting projects done right the first time. If you need outside assistance, think of it as an investment in quality that will lead to greater profits.

3. Neglecting Current Customers. 

It takes substantially more money and time to acquire new customers than it does to keep current ones active and interested in your brand. It is really important that current clients, customers, and associates don’t feel like you’re neglecting them. Make following up with customers a natural part of weekly and monthly operations.

4. Not Keeping an Eye On Expenses.

If you don’t know where your money is going, you’ll always find it hard to turn a profit. Regular cost analyses are an essential part of identifying wasteful areas of the business. All companies have weaknesses; the difference between a successful company and a struggling one is vigilance and a constant focus on improvement.

5. Being Afraid of Technology.

Modern businesses cannot afford to ignore the benefits of technology. Digital invoicing systems are particularly profitable, because they automate payment processes. This cuts down on the number of mistakes, speeds up payment timeframes, and creates an accurate record of every ingoing and outgoing transaction.

6. Over relying On Marketing Materials.

You could have the shiniest, glossiest brochures, business cards, and flyers in the world, but if you don’t follow them up with engaging contact, it won’t matter. Promotional efforts are only activated with the addition of market interaction. You’ve got to get out there and get consumers excited about your brand.

Why Staying Ahead of the Curve is Vital.

It can be tempting, particularly for smaller businesses, to take less chances and be more reluctant to embrace new technologies and ways of working. Ironically, smaller companies and startups are actually a lot more agile than bigger businesses and they can afford to take more risks. This is a vital part of staying competitive, so don’t be afraid to explore the many benefits of green technology and look at ever innovative ways to streamline your operation.

Share

Young Upstarts is a business and technology blog that champions new ideas, innovation and entrepreneurship. It focuses on highlighting young people and small businesses, celebrating their vision and role in changing the world with their ideas, products and services.

Tagged as: , ,