As a small business owner, your budget is everything. Even the slightest deviation can have a major impact on your other finances. So when you find yourself losing more money than you’re bringing in, it’s time to get down to business and figure out what’s wrong.

There are many reasons why you could be losing money and not all of them may be under your control such as changes the government trade policy. But it’s important to put a stop to the ones you do have control of.

Here are five reasons why your business could be losing profits and how you can stop it from happening before it’s too late.

  1. The business model is flawed. Your business model is the backbone of your company. If there’s a flaw in the model, it could cause your business to fail. It’s difficult to tell whether a business model is sound until you see it in action. But to keep your business from falling apart once you notice those problems, you need to take steps to fix them ASAP.
  2. You’re not targeting the right audience. This is a problem many businesses have, both big and small. Marketing campaigns that are too generalized and don’t advertise to the right people can keep your product from selling on the market. Rethink your marketing strategy so you’re investing in a developing, loyal group of customers. Have a brainstorming session dedicated to your target audience. What do they look like? What’s their age bracket? Do they have kids? These are the questions you need to ask yourself so you know how to market your product correctly to the people who will buy it.
  3. You’re not utilizing free marketing opportunities. When you’re trying to get the message of your brand out there, it’s easy to forget about the free marketing opportunities you have at your disposal. Social media platforms like Facebook, Instagram, Twitter, and Tumblr are great ways to market your business and interact with your target audience without draining your budget. Use your marketing budget only when necessary to boost brand visibility.
  4. You’re investing in the wrong property. You might have big dreams when it comes to your business. But it’s important that you’re not taking strides before you take your first steps. For instance, construction companies may be using 3D printers to print concrete materials and maintain their 6% annual growth, but that doesn’t mean it’s cheaper to build your business than it is to rent an existing property. Unless your business requires a customized layout, stick to renting until you’ve grown enough as a company to expand.
  5. You’re not investing properly in yourself. Many small businesses owners go into debt when they’re first starting out, so it’s important that you get your spending and saving under control now while you’re ahead. Debt can drag your business down if you’re not careful. Spend money on the things that are necessary such as a patent for your product (patents have a term of 20 years from the application filing date) and the right employees for your business. Don’t invest in things like overly-expensive websites and unnecessary advertising when you don’t have the budget.

It’s vital for any business to stay on top of their finances, but especially for small businesses. Without the proper tools, you can easily sink instead of swim. The good news is that, by following the tips above, you can keep your head above water and stop losing money where you shouldn’t be.

If you have been thinking about starting your own business from home for a while, you might have come across various posts telling you that you can get started for free, and you don’t need to invest anything. You have to be careful with these claims, as they will mislead you and make you believe that you can have something for nothing. This is not the case. Just like with home improvements, if you do it cheap, you will do it twice. Find out more about the most dangerous cost cutting mistakes you can make when setting up your business.

DIY Website

You can certainly create a website; in fact, anyone can. However, is it going to represent what you have to offer and communicate your value effectively? If you are on a low budget, you might be tempted to sign up for monthly website deals, but it will not be the best solution, if you want any control over the control and the design, and want to reduce your running costs long term.

Cheap Computing Solutions

You might also think that your old laptop will do to run your business from. In fact, it is not the best way to start. Instead, you should invest in a decent laptop that can deal with multitasking, and is reliable enough to keep you going no matter how many projects you are dealing with. In case you are a graphic designer, you will need additional graphic memory, and a simple lower end machine will simply not do.

Free Software

There are plenty of free software out there that will help you manage your accounts, your projects, and your calendar. Some of them will be just fine when you get started. However, if you need to create professional designs or websites, you will need to invest in software solutions and make sure that they deliver the results your clients are expecting of you for their money. You can talk to a professional and request more info about the different small business IT solutions available.

Lack of Branding

Starting with a DIy logo might be fine if you just have a blog, but paying a couple of hundred dollars for a branding kit is really not a huge investment, and you will be able to create a consistent message and image across the board from the beginning. If you are starting a business, you will have to think long term.

DIY Social Media Ads

Many startup business owners believe that social media marketing is easy, and they can schedule their posts themselves and keep on top of multiple accounts. You just have to ask yourself whether or not it is the best use of your time, or you should use software, such as Buffer or Hootsuite to save time and make your life easier.

If you would like to make the most out of your startup, you cannot avoid every investment. You will need to create a professional and consistent brand, and this is either hard work or expensive.

 

Even though working remotely has become a business trend, it still fails to provide satisfying levels of belonging and social engagement to employed teams and self-employed professionals. Ultimately, the main issue lies in the popular understanding of remote working options. Most people tend to image a solitary home office setting in which they stay in complete isolation from the external world. In reality, working remotely doesn’t have to encourage loneliness. On the contrary, you can create for yourself, or for your team, a remote community to provide support, a sense of belonging, and human connection throughout their journey.

Remote doesn’t mean isolated

The first lesson you need to learn when it comes to establishing a remote business economy is that remote is not a synonym for ermite. On the contrary, being outside of an office environment doesn’t mean that you have to be on your own. Even though you’ll find plenty of popular home office decor tips and strategies, it’s crucial to understand that quality work needs an effective workplace. As a result, the coworking scene has been developing integrated and attractive solutions to provide a work environment to professionals who would, otherwise, be isolated. A coworking space offers not only contact to same-minded professionals, but it also ensures that you can get access to a selection of amenities that are essential for your job.

Remote means available at a click

As a rule of the thumb, remote professionals need to rely on effective cloud solutions that give them access to everything they need to perform their everyday tasks. Whether you’re working a report for a client or need to check the next project in the pipeline, making remote possible means that professionals only need a secured Internet connection to carry on with their work. If your business is considering the move towards an out-of-office environment, you need to start the journey with the installation of safe, intuitive and reliable cloud computing services for your team – or yourself if you’re self-employed.

Remote workers can be on friendly terms

The Internet has long proven that you don’t need to meet people physically to be able to interact and create relationships. Instagram is renowned for organising meetup events where people who have exchanged online can finally meet face-to-face, for instance. Consequently, there is no reason why remote workers couldn’t be part of the team, even if they don’t see their colleagues every day. Powerful collaborative tools such as video conferencing and professional team appreciation let employees connect, engage and interact throughout the day. You need to make room for virtual socialisation too!

Remote health team on call

Last, but not least, despite advanced measures to enhance the standards of the remote working life, it’s not uncommon for employees to experience loneliness, isolation and sadness when they are separated from a physical team. Consequently, your remote workers need to be registered with mental health services that can provide support on the go. You can find consultant services that are available remotely, via chat, call or even video conference for those who need help.  

While remote working arrangements are becoming popular, businesses fail to offer sufficient community-building solutions to help remote employees to ease into their position. Failure to make out-of-office staff feel part of the company doesn’t only affect their well-being, but it also decreases their performance and productivity.