The journey to running a successful business can often feel like a volatile one. With pressures and challenges beyond your control impacting your businesses, day in, day out. We have put together a list of things you can do to stop your business from losing money.
1. Get your numbers in order
Poor accounting, whether that’s due to limited skills or budget, a team spread thin, or a lack of organisation can have a huge impact on your business. To stop losing money, you need to have control and visibility over your financial situation. To do this:
- Get the right people in the right roles in your team by thinking about what impact you want to see. Hire based on outcomes instead of outdated role descriptions.
- Plan ahead by using finance and project management tools to stay on track.
- Streamline processes by setting clear lines of communication and realistic timeframes and deadlines.
2. Make sure the price is right
Under or overpricing products and services can result in losing out to your competitors. To avoid this:
- Take time to develop market knowledge and expertise.
- Make sure your business is agile and adaptable to changing trends.
- Keep an eye on the competition to stay informed and remain ahead.
Once you know where you sit in the market, you will be able to determine the correct price for your services.
3. Put your clients and customers front and centre
Limited, or very basic customer service, is likely to drive your customers away and lose money. Slow response times, limited knowledge, and a lack of resolution for customers make them look for services elsewhere. Try this:
- Provide an excellent customer experience, going above and beyond.
- Listen to changing customer needs by paying attention to reviews and feedback.
- Have a curated response process that offers detail, support, and a satisfying resolution to any issues.
- Have a service-level agreement (SLA) with set metrics, including contactable hours and response and resolution times.
- Use technology to make it easier for your customers to reach you, from website chat and live messaging to the use of social media platforms.
4. Receive payments when they’re due
Late payments mean bad news for businesses. Having to chase overdue invoices makes you lose money and time, forcing businesses to choose between scaling and chasing payments. The cost of late invoice payments can be more than financial, with an impact felt at an operational level across industries. So, what can you do?
- Create a streamlined collections process and automate as much as you can.
- Set late payment terms to encourage your clients to pay you on time every time.
- Listen to your clients’ needs to gauge whether there are circumstances that may lead them to pay late.
- Use smart payments technology to make it easier for your clients to pay you and automate payment chasing.
5. Shop around
Whether you’re looking for business insurance, loans, broadband, software, or something else, shopping around is key to save money.
An area that is often overlooked is payment providers. If you sell to consumers, you will be familiar with hefty card processing fees or services like PayPal or SumUp. All these take valuable time to process and are expensive in the long run. And if you provide services to other businesses you might get paid by bank transfer which is free, but tedious and inconvenient.
We’re biased, but smart tech like Juno makes payments easy, instant, and way cheaper. And you can give it a try for free.
We hope you found this article helpful. For more business-related content, join our newsletter.