10 lesser-known reasons you are still not profitable in your business!
by La'Shonda DeBrew on February 24, 2022
- You do not hold yourself or your team accountable to reviewing financial reports to make crucial decisions about cashflow and sales.
- Your team does not understand the core mission or cashflow situation. It’s fine to have an open door policy on the financial status of your company and be transparent so those who want to contribute to making it BETTER absolutely will.
- You are not planning for common or upcoming shortfalls.
- You are unsure of the productivity/sales trends to expect vs. labor costs in your company.
- You are unsure of the marketing dollars you should be spending and how much you should expect those dollars to create in short term and long term sales.
- You are unclear on your customer’s buying cycle – How long does it take them to buy and when should you expect them to buy again!
- You lack a clear path for your customers to potentially upgrade and purchase more often or at a higher rate. Introduce other revenue streams in the business.
- Culture, productivity, and profitability must live in harmony – we cannot be treating our team to steak and bonuses for the sake of culture if the profitability is a sinking ship. Find other ways to incentivize your team to produce that look like them generating MORE cash.
- Spending 1 dollar to save 40 cents NEVER makes sense – Do not confuse “Tax strategy” with “spend all my money, so I don’t have to pay taxes”!
- Be a more demanding employer of YOURSELF. Often CEOs pull themselves out of operations a little too soon. If it’s going to hurt your bottom line, phase it in or reduce the hours instead of full time.
